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Not sure where to start? Our combo foundation is perfect for SME’S
Our brochures are a one-stop-shop for all your HR, Health & Safety and Training needs.
Want to talk to us? Get in touch!
A practical guide to UK employment law changes in 2026, including Statutory Sick Pay reform, day-one rights, fire and rehire rules, and the HR policy updates employers need before April.
As we head into the new year, many businesses use this quieter period to look ahead and plan. From an employment law perspective, that’s a sensible move — because 2026 is shaping up to be another significant year of change.
2026 will be a significant year for UK employers. A number of employment law changes in 2026 will take effect, with several major reforms expected from April, requiring updates to HR policies, payroll processes and management training.
The Employment Rights Bill received Royal Assent in December 2025 and will begin to take effect in stages throughout 2026 and beyond. While some of the headline reforms are due later, several important changes are expected to take effect from April 2026, meaning preparation during early 2026 will be essential.
Below is a practical overview of what’s coming, what’s confirmed, and what employers should be getting ready for.
As usual, April will bring increases to statutory pay rates:
Statutory Sick Pay (SSP) is expected to increase from £118.75 to £123.25 per week
Family-related statutory pay (maternity, paternity, adoption, shared parental, neonatal care and parental bereavement) is expected to rise from £187.18 to £194.32 per week
The National Living Wage (workers aged 21 and over) is expected to rise to £12.71 per hour, with proportionally higher increases for younger workers
Payroll systems, pay structures and budgets should be reviewed in advance to ensure compliance.
One of the most impactful changes for employers is the reform of Statutory Sick Pay. From April 2026, SSP is expected to:
Become payable from the first day of absence, rather than day four
No longer require employees to meet the Lower Earnings Limit to qualify
This means more employees will be eligible for SSP, and it will be payable earlier. Employers should anticipate increased costs and ensure absence management procedures, payroll processes and manager guidance are updated accordingly.
A new Fair Work Agency is expected to launch in April 2026. This body will bring together several existing enforcement agencies and will have enhanced powers, including:
Enforcing National Minimum Wage compliance
Taking employment tribunal claims on behalf of workers
This marks a shift towards more proactive enforcement, increasing the importance of robust compliance and record-keeping.
From April 2026, employees are expected to gain day-one entitlement to:
Statutory paternity leave
Unpaid parental leave
The current 26-week service requirement is expected to be removed. Employers will need to update policies and ensure managers understand the new eligibility rules. (It’s important to note that eligibility for pay may still be subject to qualifying conditions.)
Additional changes expected to take effect include:
Reforms to trade union legislation, including the repeal of minimum service level requirements for strikes
Enhanced whistleblowing protections, with explicit recognition that disclosures relating to sexual harassment are protected
The introduction of a voluntary framework for gender pay gap action plans and menopause action plans (expected to become mandatory in 2027)
The government has indicated that the time limit for bringing most employment tribunal claims is expected to increase from three months to six months. While October 2026 is often referenced, employers should keep an eye on formal commencement regulations.
The practice commonly referred to as “fire and rehire” is expected to be heavily restricted. Dismissals followed by re-engagement on less favourable terms are likely to be automatically unfair, except in limited circumstances where genuine financial necessity can be demonstrated.
Building on the Worker Protection Act, further changes are expected to:
Extend employer liability to cover third-party harassment
Increase the duty on employers from taking “reasonable steps” to taking “all reasonable steps” to prevent harassment
This will raise expectations around training, policies, risk assessments and preventative action.
Some of the most substantial reforms are expected to follow in 2027, including:
New rights for workers on zero-hours contracts to request guaranteed hours based on actual working patterns
Flexible working becoming a default right to request from day one (with the ability to refuse on reasonable business grounds remaining)
Changes to unfair dismissal rights, including a shorter qualifying period and the potential removal of the compensation cap
Employers should aim to have the following reviewed, updated and communicated by March 2026:
Policies to review or update
Sickness Absence Policy (day-one SSP and eligibility changes)
Paternity Leave Policy
Unpaid Parental Leave Policy
Whistleblowing Policy
Pay and Minimum Wage compliance documentation
Processes to review
Payroll and SSP triggers
Absence reporting and monitoring
Recruitment and onboarding documentation
Budget forecasting for increased statutory costs
Training and awareness
Manager training on sickness absence and SSP
Refresher training on whistleblowing and harassment
2026 will mark a clear shift towards stronger employment rights and more active enforcement. While not every detail is finalised yet, the direction of travel is clear, and employers who prepare early will be in the strongest position.
Need support preparing for the 2026 employment law changes?
Several of the reforms coming in April 2026 will require updates to policies, payroll processes and manager training. If you’d like support reviewing what needs to change and when, we can help you get compliant without unnecessary disruption.
👉 Get in touch to discuss your 2026 HR readiness.
Employment law changes from April 2026 (UK): SSP reform, day-one leave rights and what employers need to do now As we move through 2026, employers
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