UK Employment Law Changes Coming in 2026

UK Employment Law Changes Coming in 2026 — What Employers & Employees Need to Know

The Employment Rights Bill brings one of the largest modernisations of UK employment law in years. Many reforms take effect from April 2026, with further measures expected in October 2026 and beyond. This article summarises the practical changes, what they mean, and immediate actions employers should take.

Key Changes (April 2026)

1. Statutory Sick Pay (SSP) — Day One Payable

From April 2026, SSP will be payable from day one of sickness eliminating the 3 day waiting period.  The reform also abolishes the lower earnings limit that previously excluded the lowest-paid workers — expanding eligibility significantly. The weekly SSP rate will rise to £123.25.

2. Parental Leave & Paternity — Day-One Rights

Paternity leave and certain parental leave entitlements become day-one rights removing length of service requirements. Shared parental leave rules are also under review to improve flexibility for parents.

3. Redundancy Consultation Awards — Bigger Penalties

The maximum protective award for failing to consult properly on collective redundancies will increase — doubling from 90 to 180 days’ pay. Employers must take consultation duties much more seriously.

4. The National Living Wage will rise to £12.71, with larger percentage increases for younger workers.

Other Important April 2026 Reforms

• Whistleblowing & harassment: Sexual harassment disclosures become protected whistleblowing.
• Trade union reform: Easier recognition routes and electronic ballots; stronger statutory access rights.
• New enforcement: A Fair Work Agency will centralise enforcement of SSP, holiday pay and other core employment rights.

Major Changes Expected October 2026

• Fire-and-rehire: Heavily restricted; only permitted in exceptional circumstances after genuine consultation.
• Tipping rules: Employer consultation required and policies must be reviewed regularly.
• Harassment duties: Employers must take “all reasonable steps” to prevent third-party harassment.
• Tribunal time limits: Many claim windows likely extended (e.g., 3 to 6 months).
• Zero-hours protections: Stronger rights toward more predictable schedules for casual workers.

What Employers Must Do Now

1. Audit contracts & policies — update SSP, parental leave, redundancy and tipping policies;
2. Update redundancy procedures — ensure proper collective consultation workflows and recordkeeping.
3. Train managers on whistleblowing, harassment prevention and new consultation standards.
4. Review casual workforce practices and rostering for zero-hours compliance.
5. Prepare for Fair Work Agency audits — centralised enforcement means higher scrutiny.
6. Update Payroll – to reflect the April increases.

Apex Employment Solicitors can help you navigate the UK Employment Law Changes Coming in 2026. We can assist in drafting amendments to your Employee Handbook to ensure that your Policies are compliant for April 2026. Please contact us for further advice.