Employment law changes in April 2026: what employers and HR teams need to know

Here's what you need to prepare for: 

National Minimum Wage

From 1 April 2026, the National Living Wage (payable to workers aged 21 and above) will increase by 4.1% from £12.21 to £12.71. 

The National Minimum Wage will increase:

• By 8.5% for 18-20-year-olds, from £10.00 to £10.85
• By 6% for apprentices, from £7.55 to £8.00; and
• By 6% for 16-17-year-olds, from £7.55 to £8.00

These rates all exceed the expected inflation rates between April 2026 and April 2027, delivering a real-term pay increase for workers.

Statutory rates

From 6 April 2026, the weekly rate of Statutory Maternity Pay, Maternity Allowance, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Leave Pay, Parental Bereavement Pay, and Statutory Neonatal Care Leave Pay is expected to increase to £194.32 (currently £187.18).

Employment tribunal awards

At present, the basic award for unfair dismissal stands at £8,763, and the compensatory award is capped at £118,223 or 12 months’ salary, whichever is lower. 

These limits will rise on 6 April 2026 and will be published here nearer the time. 

Following reforms introduced under the ERA 2025, the compensatory cap for unfair dismissal is being removed for dismissals taking effect from 1 January 2027.

Statutory Sick Pay

Significant changes are coming to Statutory Sick Pay (SSP). At the moment employees earning above the Lower Earnings Limit (LEL), currently £125.00 per week, qualify for SSP from the fourth day of sickness absence. From 6 April 2026, the LEL will be abolished, meaning all employees will be entitled to SSP from the first day they are ill. 

The weekly rate of SSP, which has been £118.75 since April 2025, is expected to increase to £123.25 or 80% of the employee's normal weekly earnings, whichever is lower. 

If you operate ‘waiting days’ you will need to amend your absence policies and the terms and conditions of staff subject to these. 

Day one right to paternity leave and parental leave

Currently, employees must meet minimum service requirements to qualify for the following types of leave:

• Paternity leave: 26 weeks' continuous service
• Unpaid parental leave: one years' service  

From 6 April 2026, this service requirement will be removed. Subject to the other eligibility criteria, employees will be entitled to both types of leave from the first day of their employment. Plus, employees won't be prevented from taking paternity leave after shared parental leave, giving them greater flexibility in how they arrange their leave.

Protective award for collective redundancy

Currently, if you fail to comply with your collective consultation obligations, employees can claim a protective award of up to 90 days' pay. From 6 April 2026, this maximum award doubles to 180 days' pay. Employment tribunals will continue to be able to make proportionate awards below the maximum where appropriate.

This is a significant increase and makes it even more critical to comply fully with obligations to collectively consult staff where employers are proposing to make 20 or more employees redundant within 90 days, or at least the ‘threshold number of employees’ under new section 195A of TULRCA 1992 (which will come into force sometime in 2027).

The government is currently consulting on the new threshold for triggering collective consultation. 

Trade unions and industrial action

On 6 April 2026, the statutory procedure for the recognition of trade unions for the purpose of collective bargaining will be simplified:

• The 10% threshold for the Central Arbitration Committee to accept a trade union application will be replaced with a test of between 2% and 10%
• The requirement for a union to show that a majority will support trade union recognition will be removed; and
• The 40% support threshold for recognition ballots will also be removed

Sexual harassment as qualifying disclosure

A protected disclosure occurs when a worker discloses information to a particular person (usually their employer) which, in their reasonable belief, is made in the public interest and shows a particular type of wrongdoing.

From 6 April 2026 the ERA 2025 provides that a protected disclosure can include an employee reporting sexual harassment, meaning that they may benefit from the additional protections, including from detriment and dismissal, under the whistleblowing legislation.

The Fair Work Agency

The FWA will be established on 7 April 2026. It will (eventually) bring together existing state enforcement functions including: 

• Minimum wage and statutory sick pay enforcement
• Employment Tribunal penalty scheme; and
• Labour exploitation and modern slavery

In addition, the FWA will enforce holiday pay and, over time, take on the enforcement of a wider range of employment rights. 

Implementing its powers will be done in stages, and some of its enforcement duties will be set out in separate regulations.

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