Employment law update – key changes in effect from April 2026

April 2026 marks the first wave of reforms under the Employment Rights Act 2025 (the “Act”), together with annual increases to statutory rates. This update sets out confirmed statutory rates for the upcoming tax year and summarises the main reforms coming into force in April that employers should prepare for.

National minimum wage increases (from 1 April 2026)

The government has confirmed a series of increases to the National Minimum Wage and National Living Wage, reflecting recommendations accepted from the Low Pay Commission. Employers need to ensure payroll systems are aligned with the new pay reference periods from April.

From 1 April 2026:

• National Living Wage (21 and over) rises to £12.71 per hour,
• Ages 18–20: £10.85 per hour
• Ages 16–17: £8.00 per hour
• Apprentices: £8.00 per hour
• Accommodation offset: £11.10 per day

Statutory Sick Pay (“SSP”) (from 6 April 2026)

Statutory Sick Pay undergoes significant reform this year. From 6 April:

• SSP increases to £123.25 per week (up from £118.75).
• SSP will become payable from day one, with the three‑day waiting period removed.
• The lower earnings limit for SSP entitlement is removed, meaning employees who were previously below the qualifying earnings threshold will qualify.

Family‑related statutory payments (from 6 April 2026)

The prescribed weekly rate increases to £194.32 per week for:

• Statutory maternity pay (after the first six weeks)
• Statutory adoption pay
• Statutory paternity pay
• Shared parental pay
• Statutory neonatal care pay
• Statutory parental bereavement pay

The Lower Earnings Limit for these payments (except maternity allowance) rises from £125 to £129 per week.

Employment Tribunal limits (from 6 April 2026)

From January 2027, the Act will introduce significant reforms to unfair dismissal rights. The qualifying period for bringing an unfair dismissal claim will reduce from two years to six months, substantially widening eligibility for protection. At the same time, compensation for unfair dismissal will become uncapped, removing the existing statutory limit on the compensatory award.

Ahead of these changes, interim increases to statutory limits take effect from 6 April 2026:

• A week’s pay increases to £751 (up from £719).

• The limit on a week’s pay will rise to £751 (up from £719)

• Maximum compensatory award for unfair dismissal rises to £125,543 (up from £118,223) – although will become uncapped from 1 January 2027 under the Act.
• Minimum basic award for certain dismissals increases to £9,157

Statutory Redundancy Pay (“SRP”) (from 6 April 2026)

From 6 April 2026:

• The redundancy pay cap increases to £751 per week
• Maximum statutory redundancy award rises to £22,530

Key reforms coming into force in April 2026

Day‑one rights for paternity leave and parental leave (from 6 April 2026)

• Paternity leave becomes a day‑one right, with the prior 26‑week service requirement removed.
• Employees may take paternity leave even if they have previously taken shared parental leave.
• Unpaid parental leave also becomes a day‑one right.

Bereaved partner’s paternity leave

The Paternity Leave (Bereavement) Act 2024 took effect on 29 December 2025 and created a new right to extended leave where the primary carer dies within the first year.

• These new rights will apply to bereavements occurring on or after 6 April 2026.
• Eligible bereaved partners will be entitled to up to 52 weeks’ leave, available from day one and without a service requirement.

• Up to 52 weeks’ leave where a child’s primary carer dies within the first year.
• No statutory pay entitlement – paid leave is at employer discretion.

Fair Work Agency launch

• The new Fair Work Agency will launch on 7 April 2026, creating a single, centralised enforcement body for employment standards.
• The Agency is expected to take on a broader coordination role across minimum wage, sick pay and wider employment rights compliance

Other significant April 2026 reforms

Collective Redundancy – Protective award

• The maximum protective award doubles from 90 to 180 days’ pay where employers fail to collectively consult.

Sexual harassment and protected disclosures

• Complaints of sexual harassment will become protected disclosures, giving whistleblowing protection.

How we can help

If you need assistance or have any questions on how these changes will impact your business, please contact our employment team.