Employment Law Update April 2026
The ERA 2025 received Royal Assent in December 2025 and introduces 28 wide-ranging reforms that take effect from various dates in 2026 and 2027.
Following the first wave of changes in February 2026 (which related to Trade Unions and industrial action), we set out below a summary of the next wave of these changes, which take effect in April 2026.
1. Statutory Sick Pay (SSP)
SSP will be payable from day one of sickness absence. The three waiting days are abolished. The prescribed weekly rate will increase from £118.75 to £123.25. The rate payable will be the lower of the prescribed weekly rate or 80% of normal weekly earnings.
What to do now: Audit your payroll and HR systems now to make sure they can process SSP from day one. Update your sickness absence policy and employment contracts and brief line managers on the change.
2. Day one family leave rights
From 6 April 2026, employees will have the right to paternity leave and unpaid parental leave from the first day of their employment, removing the previous 26-week and 1-year qualifying periods respectively. This only applies to babies born on or after 6 April 2026, or whose expected week of birth is on or after that date. In adoption cases, it applies to placements starting on or after 6 April 2026.
What to do now: Update your paternity policy and unpaid parental leave policy accordingly.
3. Collective redundancy - doubled protective award
The maximum protective award for failure to consult in collective redundancy situations will double from 90 days' pay to 180 days' pay. This is expected to apply to dismissals taking place on or after 6 April 2026.
What to do now: Factor this significantly higher risk into any restructuring plans. Review your collective consultation procedures and ensure you take legal advice before initiating any redundancy programme.
4. Whistleblowing - sexual harassment added
From 6 April 2026, sexual harassment will be added to the list of relevant failures that can form the subject matter of a protected disclosure under whistleblowing legislation. Workers will not need to identify an existing legal obligation, criminal offence or breach of health and safety to make a qualifying disclosure about sexual harassment.
What to do now: Update your whistleblowing policy and sexual harassment policy to reflect this. Ensure managers understand that sexual harassment complaints can now trigger whistleblowing protections. You should also update the list of permitted disclosures in the confidentiality clauses in your employment contracts and settlement agreements.
5. Fair Work Agency (FWA) established
On 7 April 2026, the Government's new Fair Work Agency will begin operating as the UK's enforcement agency for employment rights. It will be able to carry out investigations, issue penalties, and take legal action on behalf of employees. Three areas of particular focus in the FWA's initial enforcement strategy are likely to be non-payment or underpayment of holiday pay, sick pay and National Minimum Wage.
What to do now: Conduct a compliance audit now, particularly around holiday pay calculations and NMW compliance. Review contracts and payroll records and rectify any issues immediately.
6. Increases to statutory rates
From 1 April 2026, National Minimum Wage rates will increase:
the National Living Wage (NLW) will increase from £12.21 to £12.71 per hour;
the 18 to 20 year old rate will increase from £10.00 to £10.85 per hour; and
the 16 to 17 year old rate will increase from £7.55 to £8.00 per hour.
In addition, the limits in relation to unfair dismissal and redundancy pay are increasing:
Basic award: increasing from £8,763 to £9,157;
Compensatory award: increasing from £118,223 to £123,543; and
Maximum amount of a “week’s pay” (used to calculate statutory redundancy pay): increasing from £719 to £751.
The cap on the unfair dismissal compensatory award is being abolished entirely on 1 January 2027.
What to do now: Ensure that HR and payroll teams are aware of these changes.
How we can help:
We have prepared an ERA 2025 Compliance Health Check. This is a simple 12 question form which will help you to quickly assess your organisation’s ERA 2025 exposure.
ERA 2025: Compliance Health Check