Legislative Changes – What Employers Need to Know for April 2026

With the phased implementation of the Employment Rights Act 2025 (ERA), alongside other legislative updates, April 2026 brings a wide range of important changes for employers. Keeping track of these developments can be challenging, so this article outlines the key updates coming into effect.

Unless otherwise stated, all changes take effect from 6 April 2026.

Key Changes from 6 April 2026

Statutory Sick Pay (SSP)

Significant reforms to Statutory Sick Pay aim to widen access and provide earlier support:

• Lower Earnings Limit removed: SSP will now be available to all eligible employees, including part-time and lower-paid workers.
• Payable from day one: The previous three waiting days are abolished.
• Updated payment structure: SSP will be paid at 80% of average weekly earnings or the flat rate of £123.25, whichever is lower.

Holiday Pay Record-Keeping

Employers will be required to maintain detailed and accurate holiday records for six years. These must include:

• Ordinary and additional annual leave taken
• Carried-over leave from previous years
• Breakdown of holiday pay (including included and excluded elements)
• Payments made in lieu of untaken leave

This change increases transparency and ensures compliance with holiday pay obligations.

Paternity and Parental Leave

Family-friendly rights are being expanded:

• Paternity leave becomes a day-one right, removing the previous 26-week service requirement
• Unpaid parental leave also becomes a day-one right, eliminating the one-year service requirement
• Eligible fathers and partners can now take paternity leave even if they have already taken shared parental leave

Bereaved Partner’s Paternity Leave

A new entitlement is being introduced to support partners in tragic circumstances:

• Up to 52 weeks of unpaid leave for a bereaved partner where the mother or primary adopter dies
• This is a day-one right with no minimum service requirement
• Leave must be taken within 52 weeks of the child’s birth or placement

This provision is designed to provide crucial support during periods of profound personal loss.

Whistleblowing Protections

Reporting sexual harassment will now qualify as a protected disclosure under whistleblowing law:

• Employees who report sexual harassment will receive statutory protection
• Protection includes safeguards against dismissal or workplace detriment

Collective Redundancy Consultation

Penalties for non-compliance are increasing:

• The maximum protective award rises from 90 days’ pay to 180 days’ pay per affected employee
• Applies where employers fail to properly consult when proposing 20 or more redundancies within a 90-day period

Trade Union Recognition

Changes are being introduced to make union recognition more accessible:

• Removal of the requirement for 40% workforce support
• Only a simple majority of votes cast is now needed
• Unions must demonstrate 10% membership in the proposed bargaining unit (subject to future adjustment)
• Simplified process before the Central Arbitration Committee (CAC)

Annual Increases to Statutory Payments

Several statutory limits and payments are being uprated:

• Cap on a week’s pay: £751 (up from £719)
• Maximum statutory redundancy pay / basic award: £22,530
• Maximum unfair dismissal compensatory award: £123,543
• Minimum basic award (certain cases): £9,157
• Statutory Sick Pay: £123.25 per week
• Paid family leave rate: £194.32 per week
• Qualifying earnings threshold: £129 per week

Notably, the cap on unfair dismissal compensatory awards will be removed entirely from 1 January 2027.

Changes from 7 April 2026

Fair Work Agency (FWA)

A new enforcement body, the Fair Work Agency, will be established to oversee compliance with key employment rights.

Its responsibilities will include enforcement of:

• National Minimum Wage
• Statutory Sick Pay
• Holiday pay
• Modern slavery regulations

The agency will have broad powers, including the ability to:

• Inspect workplaces and employment records
• Issue penalties of up to 200% of underpayments (capped at £20,000 per individual)
• Pursue or support Employment Tribunal claims
• Provide guidance to employers and employees
• Issue legally binding compliance orders
• Recover enforcement costs from non-compliant employers

Failure to cooperate with investigations may constitute a criminal offence.

While the FWA will be established in April 2026, its full enforcement powers will be introduced at a later stage.

April 2026 marks a significant shift in the UK employment law landscape, and employers should begin preparing now to ensure they remain compliant. This includes updating internal policies and procedures, reviewing payroll and record keeping systems, and providing training for HR teams and managers.

Organisations should also take steps to ensure they can meet the requirements of expanded employee rights. Taking early, proactive measures will be essential for managing risk and maintaining compliance in this evolving regulatory environment.

Contact our ERA Specialists for Support Employment Rights Act 2025: Law Specialists Support – Clarkslegal LLP