Even more employment law updates will come in to force in April. As you will be aware there are key updates that have emerged that will impact businesses and it’s important to ensure you are fully compliant and on the right side of employment law. Key changes include increase in statutory payments and compensation limits. Laws on Day-one rights to paternity and parental leave, Fair Work Agency introduced, and new trade union laws will also be introduced. Treat this as your checklist to ensure compliance and navigate the months ahead confidently.
National Minimum Wage
From April 2026, the National Minimum Wage for 18-20 year olds increased from £10 to £10.85. The increase in the rate for 18 to 20-year-olds reduces the gap with the National Living Wage. Therefore, aligning with plans to extend the adult rate to include 18-year-olds in the future.
The National Living Wage (NLW) for employees aged 21 and over has increase by 4.1 per cent. Therefore, the new hourly rate for NLW workers has risen from £12.21 to £12.71.
The increase in the National Living Wage will deliver a real-terms pay rise for lower-paid workers. It supports the Government’s objective of maintaining the rate at no less than two-thirds of median earnings. The rise in the 18–20 year old rate also represents a step towards bringing it in line with the National Living Wage.
Baroness Philippa Stroud, Chair of the LPC, said:
”The recommendations published today are a product of diligent study of the evidence, careful reflection and significant negotiation. Our advice balances the Government’s ambitions with the need to protect the economy and labour market, with rates that are fair and realistic.”
Statutory Sick Pay
From April 2026, several changes to Statutory Sick Pay (SSP) are expected to come into effect. The lower earnings limit will be removed, meaning employees will no longer need to earn at least £125 per week to qualify. This change is expected to extend SSP eligibility to around 1.3 million lower-paid workers.
The SSP rate will also increase to £123.25 per week from 6 April 2026. Employees will receive the lower of 80% of their average weekly earnings or the statutory flat rate. Average weekly earnings will continue to be calculated over the relevant assessment period and will only include earnings subject to National Insurance contributions.
New Holiday Recording Rules
From 6 April, new holiday recording rules require employers to keep detailed records of holiday leave and pay for at least six years from the date they are created. This applies to all workers, including part-time employees and those on irregular hours.
Employers must keep records of:
- holiday taken
- holiday pay
- any leave carried over from previous years
- payments in lieu of untaken holiday, such as when an employee leaves
When recording holiday pay, it is important to clearly show what is included. This may cover elements such as bonuses or commission.
All records must be accurate, up to date, and retained for a minimum of six years.
Day-one rights to paternity and parental leave
From April 2026, parental leave rights will be strengthened, with paternity leave and unpaid parental leave becoming day one rights for employees. Currently, employees must complete 26 weeks’ service to qualify for paternity leave and one year of service for unpaid parental leave, but these requirements will be removed.
The changes are expected to expand access to paternity leave significantly, with the Government estimating around 32,000 more fathers will become eligible each year. In addition, a new entitlement will allow bereaved partners who lose their partner before their child’s first birthday to take up to 52 weeks of leave.
Bereaved Partner’s Paternity Leave (BPPL)
Eligible fathers and partners will be entitled to take up to 52 weeks of unpaid bereaved partner’s paternity leave if the mother or primary adopter dies. This leave must be taken within 52 weeks of the child’s birth (including surrogacy), the date of adoption placement, or the child’s entry into Great Britain in cases of overseas adoption.
Whistleblowing Sexual Harassment Protections
From April 2026, any disclosure relating to sexual harassment will automatically be treated as a protected disclosure, giving the employee full legal protection under whistleblowing legislation.
Collective Redundancy Protective Award
The collective redundancy protective award will double from 90 days’ pay per employee to 180 days. This is in an attempt to encourage employers to follow consultation rules correctly.
Gender pay gap and menopause action plans
From 6 April 2026, employers will be encouraged to develop action plans addressing menopause in the workplace and gender pay gaps. Initially, these plans will be voluntary, but they are expected to become a mandatory requirement from 2027.
Fair Work Agency
A new enforcement body, the Fair Work Agency, will be established to oversee a range of employment rights. Its responsibilities are expected to include enforcing unpaid wages such as National Minimum Wage and holiday pay, bringing employment tribunal claims on behalf of workers in certain situations, and carrying out workplace inspections, including obtaining documents and entering business premises.
Further regulations outlining the Agency’s full powers are still expected. It may take some time before it becomes fully operational.
Trade Union Updates
From 6th April 2026, the way Trade Unions can be recognised in a workplace will be simplified. A range of updates have already passed in February including:
- Trade unions are no longer required to appoint a picket supervisor during picketing activity.
- The minimum notice period unions must give employers before industrial action has been reduced from 14 days to 10 days.
- The validity period of an industrial action ballot mandate has been extended from 6 months to 12 months.
- The rules governing trade union political funds have also been updated.
- The requirements for industrial action and ballot notices have been simplified to reduce administrative complexity.
