Employment Law Update – April 2026

April 2026 brings several important employment law changes that will affect payroll, policies, and how you manage your people day to day. To help you stay compliant, we’ve summarised the key updates below, including changes to wages, National Insurance, and employee rights.

New minimum/living wage rates

From 1^st April 2026, the National Minimum Wage and National Living Wage will increase as follows:

This increase means businesses will need to budget for higher wage costs. For businesses in sectors such as hospitality, retail, care, and leisure, this will likely mean a noticeable increase in wage costs.

What this means for you:

• Review payroll budgets
• Inform employees of any related pay increase
• Plan for increased National Insurance contributions

From 6^th April 2026, other statutory rates will also increase as follows:

MAJOR REFORM: The Employment Rights Act 2025

The Employment Rights Act 2025 became law in December 2025 and introduces some of the most significant changes to employment rights in recent years. The first wave of reforms takes effect in April 2026; they will change how businesses manage sickness and family leave.

Here’s an overview of what’s coming imminently and how you can start preparing.

Day-One Statutory Sick Pay (SSP)

Currently, SSP is not payable for the first three waiting days of sickness absence, and employees must earn above the Lower Earnings Limit to qualify.

From 6^th April 2026:

• SSP will be payable from the first day of absence
• The lower earnings limit will be removed, meaning more workers will qualify

What does this mean for your business?

Short-term absences will now carry an immediate cost. Even a single day off sick will trigger SSP.

Practical steps to consider:

• Review sickness absence budgets
• Update contracts and sickness absence policies
• Check payroll systems are set up to apply SSP automatically from day one
• Consider using absence data and metrics to monitor triggers for consistent absence management
• Budget for increased short-term absence costs
• Strengthen return to work conversations and absence management processes
• Train and support managers to:
  • Spot patterns and trends early
  • Conduct consistent return-to-work conversations

Day-One Family Leave Rights

The new legislation also removes qualifying service requirements for:

• Statutory paternity leave
• Unpaid parental leave

This means employees will have access to these rights from the very start of employment.

For employers, this may increase the number of family-related leave requests, particularly in the first year of employment.

Bereaved Partner’s Paternity Leave (New Entitlement)

From 6 April 2026, a new right will apply where a child’s mother (or primary adopter) dies within the first year following birth or adoption.

Eligible employees will be entitled to:

• A day-one right to Bereaved Partner’s Paternity Leave
• Up to 52 weeks’ leave (depending on timing of the bereavement)
• There is currently no statutory requirement for this leave to be paid

This is a sensitive and significant change, requiring careful policy drafting and manager guidance.

How to Prepare for these Changes

To prepare for these reforms, it’s essential to take proactive steps:

• Review and update contracts, policies, and procedures to meet new requirements.
• Plan for increased payroll costs, NICs contributions and administrative changes.
• Train your teams and management to understand and implement the updates smoothly.
• Ensure absence management processes are consistent.

Navigating employment law changes can be complex, but we’re here to help. Please be assured that we’re here to assist with tailored advice and updates to your Company Handbook, Policy and other documents, to minimise the impact on your business.

Sources:

Rates and thresholds for employers 2026-2027 – GOV.UK