April 2026 UK Employment Law Changes: What Employers Need to Know

One of the most significant, and least discussed, sets of changes introduced by the Employment Rights Act 2025 is the concentrated wave of reforms taking effect in April 2026. These new rights and obligations affect employers of all sizes across England, Wales, and Scotland and come into effect from 1 and 6 April 2026, with the Fair Work Agency established from 7 April 2026. This article explains how each change works in practice, what the process requires of employers, and what the consequences are for businesses that fail to engage.

What This Means for Employers

The April 2026 reforms are wide-ranging and operationally significant. They affect pay, absence, family leave, whistleblowing, redundancy, record-keeping, and labour supply chains. Employers who have not yet reviewed their policies, payroll processes, and management training face real compliance exposure.

National Minimum Wage and Family Leave Rate Increases (From 1 April 2026)

From 1 April 2026, the National Living Wage and National Minimum Wage rates increase across all categories. Enforcement is expected to become more centralised as the Fair Work Agency becomes operational during 2026.

The new rates are as follows:

• Age 21+ (National Living Wage): £12.71 per hour
• Age 18–20: £10.85 per hour
• Age 16–17: £8.00 per hour
• Apprentices: £8.00 per hour
• Family leave statutory pay rate: £194.32 per week

Employers should audit pay practices that can inadvertently reduce pay below NMW, including deductions, time spent on training, uniform policies, and salary sacrifice interactions. Correct statutory family leave pay must also be applied.

Statutory Sick Pay Reforms: Rate Increase and Eligibility Changes (From 6 April 2026)

From 6 April 2026, the Statutory Sick Pay weekly rate increases to £123.25, the three waiting days are removed so that SSP is payable from day one of sickness, and the lower earnings limit barrier is removed, bringing more lower-paid employees into SSP entitlement. For some low earners, SSP will be calculated as the lower of the flat rate and 80% of normal weekly earnings.

Practical implications for employers:

• Update absence policies to reflect day-one SSP entitlement.
• Review payroll rules where SSP currently starts from day four.
• Update manager guidance to avoid incorrect refusals.
• Identify lower-paid employees where the 80% calculation may apply.

Payroll and HR systems must be updated before 6 April 2026.

Day-One Family Leave Rights and Bereaved Partner’s Paternity Leave (From 6 April 2026)

From 6 April 2026, employees gain day-one rights to paternity leave and unpaid parental leave, with the relevant service requirements removed. Paternity leave may also be taken before or after Shared Parental Leave, removing a previous restriction. Statutory paternity pay retains its own eligibility rules, including service requirements, even where the leave entitlement becomes day-one.

A new right to Bereaved Partner’s Paternity Leave also comes into force, allowing eligible partners up to 52 weeks of unpaid leave where the child’s mother or primary adopter dies within a year of birth or adoption.

Practical implications for employers:

• Update family leave policies to reflect day-one leave entitlement.
• Revise onboarding materials and template letters to prevent incorrect refusals to new starters.
• Implement a clear, sensitive policy for Bereaved Partner’s Paternity Leave.
• Ensure HR teams understand the distinction between leave entitlement and pay eligibility.
• Confirm what evidence and notice requirements apply for each leave type.

Failing to update policies and manager briefings before 6 April 2026 creates immediate exposure.

Collective Redundancy and Whistleblowing: Increased Liability (From 6 April 2026)

From 6 April 2026, the maximum protective award for failing to comply with collective redundancy consultation obligations doubles from 90 days’ pay to 180 days’ pay per affected employee. Separately, disclosures about sexual harassment are expressly brought within the scope of qualifying whistleblowing disclosures, subject to the usual tests including public interest.

Practical implications for employers:

• Build in sufficient lead time for collective redundancy consultation before any process begins.
• Plan representative elections early and document the process.
• Ensure you can evidence “meaningful” consultation at each stage.
• Align whistleblowing, grievance, and harassment procedures to cover sexual harassment disclosures.
• Train managers on non-retaliation obligations and escalation routes.

The doubling of the protective award significantly increases the financial risk of procedural failures in redundancy exercises.

Additional Changes: Record-Keeping, Equality Action Plans, Fair Work Agency, and Umbrella Companies

Further obligations and changes taking effect in April 2026 include:

• Holiday record-keeping: Employers must keep adequate records demonstrating compliance with statutory holiday and holiday pay entitlements, retained for six years.
• Equality action plans: From April 2026, employers with 250 or more employees are encouraged to publish voluntary action plans addressing steps to reduce the gender pay gap and support for employees experiencing menopause. This year operates as a voluntary period.
• Fair Work Agency: Established from 7 April 2026 to simplify enforcement and support compliance. It is envisaged the Agency will also be able to bring tribunal claims on behalf of employees. Employers should expect a more active enforcement environment, particularly around pay compliance.
• Umbrella company PAYE and NIC liability: From 6 April 2026, there are significant changes to who bears ultimate responsibility for PAYE and National Insurance Contributions in labour supply chains involving umbrella companies, introducing joint and several liability depending on the supply chain structure.

Why This Matters in Practice

• Underpayment of NMW or SSP – Triggers enforcement action by the Fair Work Agency, financial penalties, and reputational damage.
• Incorrect refusal of day-one leave – Exposes the employer to claims from new starters refused paternity or parental leave from day one.
• Protective award exposure – With the maximum now at 180 days’ pay per employee, a collective redundancy carried out without proper consultation carries significantly greater financial risk.
• Whistleblowing retaliation claims – A failure to update procedures to cover sexual harassment disclosures exposes the business to detriment and unfair dismissal claims by the disclosing employee.
• Holiday record-keeping failures – Non-compliance with the six-year retention duty may hamper the ability to defend holiday pay claims or satisfy enforcement scrutiny.
• Umbrella company liability – End-clients who fail to map and audit their labour supply chains may face unexpected joint and several liability for PAYE and NIC obligations.
• Equality action plan readiness – Larger employers that use 2026 as a voluntary year without taking it seriously risk being unprepared when reporting becomes mandatory.

Why Work with a Specialist Employment Lawyer

Employment law specialists can help you move from awareness to implementation efficiently and with legal precision.

• Identifying which obligations apply to your organisation and workforce structure.
• Reviewing and updating employment contracts, policies, and handbooks to reflect April 2026 changes.
• Auditing labour supply chains for umbrella company PAYE and NIC exposure.
• Advising on collective redundancy consultation processes to reduce protective award risk.
• Drafting whistleblowing and harassment procedures that meet the updated legal requirements.
• Training managers and HR teams on the new rights and obligations.
• Providing template documentation for family leave, including Bereaved Partner’s Paternity Leave.

Businesses should be aware of the April 2026 employment law changes and begin preparing now. Ensuring you are ready to comply with the new pay rates, day-one rights, revised SSP rules, and updated consultation and whistleblowing obligations is not optional, it is a legal obligation that takes effect from 1 and 6 April 2026.

Do contact our employment law specialist if you have any questions on how to implement these changes or update managers.