UK Employment Law Changes in April 2026: Everything Employers Need to Know

Key Takeaways

• From 6 April 2026, day-one rights apply for Statutory Sick Pay, paternity leave, and unpaid parental leave, qualifying service periods are removed.
• SSP is now payable from the first day of sickness and extended to all employees regardless of earnings, at the lower of £123.25/week or 80% of average weekly earnings.
• The maximum protective award for collective redundancy failures doubles from 90 to 180 days' gross pay per affected employee.
• A brand-new right, Bereaved Partner's Paternity Leave, allows up to 52 weeks' leave where a mother or primary adopter dies following birth or adoption.
• The Fair Work Agency (FWA) launches on 7 April 2026, taking on enforcement of NMW, SSP, and for the first time, holiday pay.
• Employers must now retain annual leave records for six years; failure to do so is a criminal offence.
• Businesses using umbrella companies face joint and several liability for unpaid PAYE and NICs, with no reasonable steps defence.
• National Minimum Wage rises from 1 April 2026: the National Living Wage increases to £12.71/hour for workers aged 21+.
• Sexual harassment disclosures are now formally recognised as qualifying whistleblowing disclosures, carrying uncapped liability.
• Trade union recognition becomes easier under lower ballot thresholds, with a simple majority of votes cast now sufficient.
• Employers with 250+ staff should begin voluntary equality action plan preparation ahead of the mandatory April 2027 deadline.
• Further major changes are coming: unfair dismissal protection from six months' service and an uncapped compensatory award take effect from 1 January 2027.

Introduction

April is traditionally a busy month for HR professionals, but April 2026 brings one of the most significant shifts to UK employment legislation in decades. A new wave of employment law changes, largely driven by the Employment Rights Act 2025 (ERA 2025), comes into force this month, bringing some of the most impactful reforms seen in years.

From expanded day-one rights and reformed Statutory Sick Pay to a new national enforcement body and doubled redundancy penalties, these changes affect nearly every area of employment in Great Britain. Whether you manage a team of five or five hundred, understanding what is changing, when it takes effect, and what you need to do is essential.

This guide brings together all the key updates in one place, so you can take action with confidence.

Summary of Key Changes at a Glance

1. Day-One Employment Rights: What Changes?

One of the most headline-grabbing changes in April 2026 is the removal of qualifying service periods for several key rights. From 6 April 2026, employees no longer need to have worked for a minimum period before accessing certain statutory entitlements.

a. Statutory Sick Pay (SSP)

Previously, employees had to earn above the Lower Earnings Limit (LEL) and were not entitled to SSP for the first three days of sickness (known as "waiting days"). Both restrictions are removed from 6 April 2026.

What the new rules mean:

• SSP is now available to all employees, regardless of earnings
• SSP is payable from the first full day of sickness absence
• The rate is the lower of £123.25 per week or 80% of the employee's average weekly earnings (AWE)

According to HMRC guidance published in March 2026, employers should review their sickness absence policies, check that their payroll provider is prepared, and share the changes with employees ahead of 6 April.

Transitional rules to be aware of:

• Employees who were already off sick and receiving SSP before 6 April 2026 should be moved to the new rate from that date
• Employees who were off sick before 6 April 2026 but were not entitled to SSP due to earning below the LEL may become entitled from that date, subject to when their absence began
• If an employee started a sickness absence before 6 April 2026 and was serving waiting days, those waiting days no longer apply from 6 April 2026 onwards

For employers who already operate enhanced sick pay schemes from day one, the practical impact may be limited. However, employers with large numbers of part-time, low-paid or variable-hours workers are likely to see a meaningful increase in SSP costs and potentially an uptick in short-term absences.

What you should do:

• Update sickness absence policies to reflect day-one SSP
• Ensure payroll is configured to remove waiting days and apply the 80% earnings cap for lower earners
• Brief line managers on the new reporting and recording requirements
• Consider whether your current absence management processes are fit for purpose

b. Paternity Leave

The 26-week service requirement for paternity leave is removed from 6 April 2026. Employees can now take paternity leave from their very first day of employment.

Important caveats:

• The change applies to babies born on or after 6 April 2026 (or where the Expected Week of Childbirth starts on or after 5 April 2026)
• The 26-week service requirement for Statutory Paternity Pay remains unchanged. If an employee has fewer than 26 weeks' service, the leave will be unpaid
• Employees will also be permitted to take paternity leave after shared parental leave, which was not previously possible

What you should do:

• Update family leave policies to reflect day-one paternity leave entitlement
• Ensure HR and payroll understand that pay eligibility remains tied to service length
• Consider whether you wish to enhance pay for employees who do not yet qualify for Statutory Paternity Pay

c. Unpaid Parental Leave

Similarly, the one-year qualifying period for unpaid parental leave is removed from 6 April 2026. Employees can now take unpaid parental leave from day one of their employment. Up to 18 weeks of unpaid leave per child is available for children up to the age of 18.

What you should do:

• Review and update parental leave policies
• Ensure managers are aware that leave requests may now come from employees in their first weeks of employment

2. Bereaved Partner's Paternity Leave

A new and distinct statutory right, introduced under the Paternity Leave (Bereavement) Act, comes into force on 6 April 2026.

Where a mother or primary adopter dies within the first year following birth or adoption, their partner may take up to 52 weeks of leave. The amount of leave available depends on when the bereavement occurs. Leave must be taken in one continuous block, and it must start and end within 52 weeks from the day after the child's birth.

Key points:

• This is a day-one right, with no qualifying service period
• If leave begins within eight weeks of the bereavement, only oral notice is required. Otherwise, one week's written notice containing specific information is needed
• There is no statutory pay associated with this leave

While cases are expected to be rare, the circumstances in which this right arises are deeply sensitive. Employers should ensure that managers are briefed on the entitlement and understand the care and sensitivity required when supporting employees in these situations.

What you should do:

• Update family and compassionate leave policies to include this new right
• Brief line managers and HR teams
• Review whether your organisation wishes to offer any enhanced support beyond the statutory minimum

3. Collective Redundancy: Doubled Protective Awards

From 6 April 2026, the maximum protective award for failing to comply with collective consultation obligations under the Trade Union and Labour Relations (Consolidation) Act 1992 doubles from 90 days' gross pay to 180 days' gross pay per affected employee.

This change significantly increases the financial risk of getting a redundancy process wrong. Employment tribunals have historically awarded close to the maximum protective award in cases involving serious consultation failures. With the cap now doubled, a misjudged or poorly documented process could be extremely costly.

To be clear, the underlying legal duty to collectively consult remains the same. What has changed is the financial penalty for breaching it.

What you should do:

• Review your collective redundancy procedures in light of the increased exposure
• Ensure consultation timelines, documentation standards and elected representative processes are all in good order
• Consider whether a standing employee representative body would be beneficial for your organisation
• Review any existing arrangements to "buy out" collective consultation rights, and adjust budgets to reflect the new cap

4. Sexual Harassment as a Qualifying Whistleblowing Disclosure

From 6 April 2026, disclosures relating to sexual harassment are formally added to the list of what counts as a qualifying disclosure for the purposes of whistleblowing protection.

The normal requirements for whistleblowing protection still apply: the employee must reasonably believe the disclosure is made in the public interest, and it must relate to relevant wrongdoing. The change simply makes explicit that sexual harassment is included within the framework.

In practice, many such disclosures would already have qualified under the existing rules. However, the statutory clarification has important implications for how employers should handle such complaints.

If a complaint about sexual harassment now meets the threshold for a protected disclosure, dismissing or treating the employee detrimentally as a result would carry whistleblowing liability, which is uncapped.

What you should do:

• Review internal reporting and grievance procedures to ensure they reflect the expanded scope of whistleblowing protections
• Ensure line managers understand the implications of this change when handling complaints
• Assess whether your current policies adequately distinguish between grievance-only and potential whistleblowing scenarios

5. Trade Union Recognition: Lower Thresholds

The ERA 2025 makes it easier for trade unions to obtain statutory recognition for collective bargaining purposes. From 6 April 2026, two significant threshold changes take effect:

• Unions will no longer need to demonstrate that a majority of workers in a proposed bargaining unit are likely to support recognition before applying to the Central Arbitration Committee (CAC)
• Where a recognition ballot is held, the previous requirement for at least 40% of all workers in the bargaining unit to vote in favour is removed. A simple majority of votes cast will now be sufficient

These changes were confirmed by the CAC on 6 April 2026 in updated application guidance.

For employers, this means union recognition campaigns may succeed more readily and more quickly, including in workplaces where union support is moderate rather than widespread.

What you should do:

• Review your current employee representation frameworks to ensure they are inclusive, representative and effective
• Consider whether proactive employee engagement could reduce the likelihood of a recognition application
• Brief HR and senior management on what to expect if a recognition application is made under the new rules

6. Fair Work Agency: A New Enforcement Body

From 7 April 2026, the Fair Work Agency (FWA) is established as a new national labour market enforcement body.

The FWA brings together functions previously spread across multiple agencies, including enforcement of:

• National Minimum Wage
• Statutory Sick Pay
• Holiday pay (a significant new addition, as this has not previously been enforced by the state)
• Employment agency regulations
• Labour exploitation and modern slavery

The FWA has extensive powers to investigate employers, impose penalties, recover enforcement costs, and bring employment tribunal claims. Enforcement of statutory payments will cover cases dating back to December 2025, when the ERA 2025 was enacted.

The introduction of holiday pay enforcement is particularly noteworthy. Holiday pay calculations are notoriously complex, especially for workers with variable pay or irregular hours, and non-compliance has been widespread. The FWA's involvement means this area will receive a level of scrutiny it has not faced before.

What you should do:

• Review minimum wage compliance, particularly for employees earning just above the legal minimum, where deductions or unpaid time could bring pay below the threshold
• Audit your holiday pay calculations and records
• Review your SSP processes
• Consider engaging an HR or employment law adviser to carry out a proactive compliance audit before the FWA becomes fully operational

7. Annual Leave Record-Keeping: Six-Year Retention Requirement

From April 2026, employers are required to retain records relating to annual leave for six years. This is a significant extension compared to previous expectations, and notably, failure to keep adequate records is a criminal offence.

Records that must be retained include:

• Leave taken and leave accrued
• Carry-over arrangements
• Holiday pay calculations and payments
• Any payments made in lieu of leave

This change increases audit exposure considerably, particularly in relation to holiday pay compliance and historical underpayment claims. The FWA's holiday pay enforcement mandate adds further urgency.

What you should do:

• Review your current record-keeping systems to ensure they can capture and retain the required information for six years
• Ensure HR and payroll systems are aligned and producing consistent records
• Audit existing records to identify and address any gaps

8. Umbrella Company Tax Compliance

From 6 April 2026, new rules on PAYE and National Insurance Contributions (NICs) liability apply where umbrella companies are involved in engaging workers.

Under the new framework:

• If an umbrella company fails to pay the correct PAYE and NICs, the end client and the umbrella company are jointly and severally liable (or, where a UK agency is in the supply chain, the agency and umbrella company bear joint liability)
• Crucially, there is no "reasonable steps" defence. Even if a business carried out due diligence on the umbrella company, it can still be held liable if the umbrella defaults

This change affects an estimated 700,000 workers engaged through umbrella companies and represents a significant shift in compliance risk for the businesses using them.

What you should do:

• Check whether your business uses umbrella companies in any part of its labour supply chain
• Carry out or refresh due diligence on any umbrella providers you work with
• Update contracts to include appropriate PAYE and NIC protections and warranties
• Consider tax insurance to mitigate potential exposure
• Maintain regular audits of umbrella company compliance going forward

9. Updated Statutory Rates and Pay Limits (April 2026)

April 2026 also brings the annual uprating of statutory rates and employment tribunal limits. Here is a summary of the key changes.

National Minimum Wage (from 1 April 2026)

Statutory Pay Rates (from 6 April 2026)

Employment Tribunal Limits (from 6 April 2026)

Note: The compensatory award cap for unfair dismissal is due to be abolished entirely from 1 January 2027 under the current ERA implementation timetable, making it an uncapped award. This April 2026 uprating is therefore its final increase before that significant change comes into effect.

10. Equality Action Plans (Voluntary from April 2026, Mandatory from April 2027)

Employers with 250 or more employees are required under the ERA 2025 to publish equality action plans covering:

• Steps to reduce gender pay gaps
• Support for employees through the menopause

From April 2026, publication is voluntary. It becomes mandatory from April 2027. The government published initial guidance in early March 2026, with further guidance expected in April 2026.

Employers in this category are encouraged to use the voluntary period to review their current approach and prepare their first action plan ahead of the mandatory deadline.

What Do These Changes Mean for Employers in Practice?

The combined effect of April 2026's reforms is that legal risk now arises earlier in the employment relationship than it did before. Rights that previously emerged after weeks or months of service now apply from day one. Enforcement bodies now have broader powers and a wider remit. Financial penalties for process failures have increased significantly.

This shifts compliance pressure into four key areas:

Onboarding and early employment. Employment contracts, induction materials and HR policies must reflect day-one entitlements. Early decisions, including absences, informal feedback and probationary reviews, should be documented consistently from the outset.

Line manager capability. Managers are often the first point of contact when employees raise concerns, request leave or report sickness. They need to understand what has changed and know when to escalate to HR. Training should be a priority.

Payroll and HR systems. Day-one SSP, updated statutory rates, annual leave record-keeping and the removal of waiting days all require accurate system updates. Payroll and HR functions need to be working from the same assumptions.

Redundancy and collective consultation. With protective awards now capped at 180 days' pay per employee, the cost of a poorly conducted collective redundancy process is substantially higher. Consultation timelines, documentation and elected representative arrangements should be reviewed now.

Looking Ahead: What Is Coming in Autumn 2026 and 2027?

The ERA 2025 is being implemented in stages. Several further changes are expected later in 2026 and into 2027.

From October 2026:

• The duty to take "all reasonable steps" to prevent sexual harassment strengthens to "all reasonable steps", and employers will become liable for third-party harassment (for example, harassment by clients or customers) unless they took all reasonable steps to prevent it
• Employers will be required to inform all workers in writing of their right to join a trade union at the start of employment and at regular intervals
• Employment tribunal time limits for most claims will be extended from three months to six months

From 1 January 2027:

• Unfair dismissal protection becomes a right from six months' employment, reducing the current two-year qualifying period
• The compensatory award cap for unfair dismissal will be abolished, making it an uncapped remedy
• Fire and rehire practices will be automatically unfair in most circumstances

Further changes in 2027 are also expected to cover guaranteed working hours, pregnancy and maternity rights, flexible working, and collective redundancy protections.

Conclusion

April 2026 marks one of the busiest periods for employment law change in recent memory. Day-one rights for SSP, paternity leave and parental leave mean that compliance obligations now begin the moment an employee walks through the door. Doubled protective awards for collective redundancy failures, the launch of the Fair Work Agency and stricter holiday pay record-keeping requirements all add to the compliance landscape employers must navigate.

The good news is that none of these changes require a complete overhaul of your HR approach. For most employers, the priority is to review existing policies, update payroll systems, brief line managers and ensure documentation standards are consistently applied from day one.

Taking action now, before enforcement picks up and before claims begin to arise, is the sensible approach. If you would like support reviewing your position in light of April 2026's changes, the WorkPermitCloud team is ready to help.

How Can WorkPermitCloud Help?

At WorkPermitCloud, we understand that keeping up with fast-moving employment law changes is challenging, particularly when you are also managing the demands of business immigration compliance. Our team works with UK employers to review HR policies, update employment documentation and ensure your internal processes reflect the latest legal requirements, from day-one rights and SSP changes to redundancy procedures and record-keeping obligations. Whether you need a policy review, compliance audit or practical HR guidance, we are here to help.

📞 Call us: +44 020 8087 2343 
📧 Email: info@workpermitcloud.co.uk 
📅 Contact form: https://www.workpermitcloud.co.uk/contact

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