Key Employment Law Changes You Need to Know

A number of changes under the Employment Rights Act 2025 are now starting to take effect.

While some reforms around trade unions were introduced last month, April 2026 brings a wider package of updates—many landing alongside the usual annual changes, such as increases to the national minimum wage and statutory payment rates.

Here’s a practical overview of the key changes employers should have on their radar:

 

1. Statutory paternity leave and parental leave from day one

From 6 April 2026, eligible employees can claim leave from day one of their employment (prior to this date there was a need for 26 weeks service).

26 weeks service is still required to be eligible for statutory paternity pay.

The ERA also removes the one-year qualifying period for ordinary parental leave, making that a day-one right as well. Ordinary parental leave, available to eligible parents, is the right to unpaid time off work when staff need to look after their children.

This allows eligible parents to take up to 18 weeks of unpaid leave per child (up to age 18), typically in blocks of up to four weeks per year.

 

2. Day-one statutory sick pay and extended eligibility

From 6 April 2026, SSP is payable from the first day of sickness, rather than from the fourth day as is currently the case. The requirement for people to earn above the lower earnings limit (LEL) is also removed.

SSP will be paid at 80% of normal weekly earnings or the uprated weekly flat rate of £123.25, whichever is lower.

 

3. New national minimum wage rates

From 1 April 2026, all national minimum wage rates go up, some more than others. The national living wage, which applies to people aged 21 and over, increases by 4.1% to £12.71 per hour.

The NMW for 18–20-year-olds increases by 8.5% to £10.85.

 

4. Increased statutory rates (maternity, sickness, redundancy, etc)

From Sunday 5 April 2026, the weekly rates of statutory maternity, adoption, paternity, shared parental, neonatal care and parental bereavement pay increase from £187.18 to £194.32.

The weekly rate of statutory sick pay (SSP) is increasing to £123.25, up from £118.75. Since the LEL requirement is being removed, from 6 April employees will be entitled to £123.25 for SSP or, if lower, 80% of their average weekly earnings.

Employers making redundancies must pay those with two years’ service an amount based on employees’ weekly pay, length of service and age. The weekly pay is subject to a maximum amount is £751 per week from 6th April.

 

5. Fair Work Agency

On 7 April 2026, the new Fair Work Agency (FWA), brings together the functions of:

• Gangmaster and Labour Abuse Authority
• Director of Labour Market Enforcement
• Employment Agency Standards Inspectorate, and
• HMRC’s National Minimum Wage Unit.

Most employment rights are currently enforced by people making a claim to the employment tribunal. The FWA brings together the existing state enforcement functions, as well as functions relating to holiday pay and statutory sick pay.

 

6. Trade union recognition

Trade union reforms are already rolling out.

In February, the Employment Rights Act 2025 repealed most of the Trade Union Act 2016, reducing notice periods for strike action, doubling the length of a strike mandate to 12 months, and removing the 40% support threshold required before industrial action in “important public services”.

From 6 April 2026, the process for unions to be officially recognised in a workplace will be simplified, meaning it will be much easier for them to gain statutory recognition. Unions will only need to show that 10% of workers in the proposed bargaining unit are members, rather than demonstrating likely majority support, when applying to the Central Arbitration Committee.

Also, in a trade union recognition ballot, a simple majority of those who vote in the bargaining unit will be enough to secure recognition, removing the current requirement for at least 40% of eligible voters to back it. Consequently, more applications are likely to meet the threshold for recognition.

 

7. Sexual harassment added to whistleblowing protections

From 6 April 2026, workers who “blow the whistle” on sexual harassment can benefit from whistleblowing protections against detriment and unfair dismissal.

It adds sexual harassment to the list of wrongdoings that can be the subject of a protected disclosure, providing clarity for workers and employers.

 

8. Employment tribunal awards

The basic award for unfair dismissal increases from £8,763 to £9,157, while the maximum compensatory award for unfair dismissal will be £123,543 (currently £118,223) or one year’s pay, whichever is lower.

The ERA 2025 will then remove the compensation caps entirely from 1 January 2027.

 

9. Duty to keep holiday records 

Employers have a new duty from 6 April 2026 to keep records relating to annual leave and holiday pay. From this date, employers must maintain adequate records tracking their staff’s annual leave and any associated payments.

This can be done in any format the employer reasonably considers appropriate, but the information must be kept for six years. The information that must be recorded includes:

• Ordinary and additional annual leave
• Annual leave carried forward from previous years
• Details of holiday pay, including which pay elements have been included or excluded
• Any payments in lieu of annual leave, including for carried‑over leave.

 

10. Collective redundancy 

Employers proposing 20+ redundancies “at one establishment” within a period of 90 days must go through a process of collective consultation before making any redundancies.  From April, if this is not followed, the maximum a tribunal can award will increase to 180 days’ pay per employee, up from 90 days.

 

11. Gender pay gap reports and action plans

Employers with more than 250 employees are required to report their gender pay gap in the usual way, but are also now encouraged to publish details of specific measures they are taking to tackle disparities.

While the requirement to report your gender pay gap each year has not changed, this year, there are some additional voluntary measures which become mandatory in 2027.

Employers are being encouraged to publish the steps they are taking to reduce their gender pay gap and to support employees through menopause on a dedicated government portal.

Menopause action plans will need to include concrete, evidence-based steps such as workplace adjustments, flexible working, or specific leave policies.

 

 

Important Disclaimer:
The content of this blog is for general information purposes only and does not constitute legal or professional advice. While every effort has been made to ensure the accuracy of the information at the time of writing, employment law is subject to change. You should not act or refrain from acting on the basis of this content without seeking specific legal or professional advice relevant to your circumstances. No liability is accepted for any loss arising from reliance on the information provided.