Employment Law Changes & What Employers Need to Prepare for Before April 2026
The Employment Rights Act represents one of the most significant shifts in workplace law in a generation. Designed to strengthen worker protections, “rebalance power” in the workplace and “bring the world of work into the 21st century”, the reforms will have wide-ranging implications for employers, HR teams and senior leadership.
For more information about the Employment Rights Act:
While many elements of the Act will be phased in over time, there are several major changes expected to take effect by April 2026. These include expanded day one employment rights, reforms to statutory sick pay, increased whistleblower protection and Trade Union reform.
In this article, we highlight the most important upcoming reforms coming into force in April 2026 and what your organisation should be doing now to prepare.
Expansion of day one employment rights
One of the most fundamental shifts introduced by the Act is the expansion of rights available from the very first day of employment.
Under the new framework, there will be day one entitlement to statutory paternity and parental leave. This means there will no longer be a 12-month qualifying period for parental leave or a six-month qualifying period for paternity leave. The restriction on taking paternity leave after paid shared parental leave will be removed to give families greater flexibility in managing childcare responsibilities.
These changes relate to babies born on or after 6 April 2026 or whose expected week of birth is on or after that date but are born early. For adoption, they will apply to placements on or after that date.
These changes signal a broader policy direction: family-friendly employment practices.
Employers should prepare for:
- Updated family leave policies
- More frequent short-term leave requests
- Workforce planning adjustments to accommodate increased leave uptake
Payment rate increases
Statutory maternity, paternity, adoption, shared parental, neonatal care and parental bereavement pay will increase from £187.18 to £194.32 per week from 5 April 2026. The Lower Earnings Limit (LEL) will increase on the same date from £125 to £129.
Statutory Sick Pay reform
One of the most impactful changes will be the overhaul of Statutory Sick Pay. Under the new regime:
- SSP will be available from day one, removing the current waiting period of three days.
- The lower earnings threshold will be removed (at present employees must be earning at least £125 a week to qualify), meaning low-paid workers who previously did not qualify will now be eligible.
- Lower-paid workers will receive SSP at 80% of earnings, improving income protection and reducing financial hardship during illness.
These reforms aim to address longstanding concerns that the existing SSP system discourages people from taking time off when genuinely unwell.
From 6 April 2026, Statutory sick pay will increase from £118.75 to £123.25 per week.
For employers, this means:
- Higher SSP exposure
- Potentially increased need for sickness absence management
- Revised sickness and attendance policies
It may also lead to renewed focus on wellbeing strategies, occupational health support, and return-to-work processes.
Improving whistleblowing protection
Under the new Act, allegations of sexual harassment will be treated as protected disclosures and workers will have whistleblowing protection against detriment and unfair dismissal. Employers should now review whistleblowing policies to ensure they include all disclosures qualifying for protection that can be raised under the policy. With increased emphasis on stamping out sexual harassment in the workplace, now is the time to audit your safeguarding policies, training and practices to make sure you are doing all you can in terms of prevention.
Gender pay gap and menopause action plans
Action plans around menopause and gender pay gaps will be voluntary from 6 April 2026 but will become mandatory sometime in 2027.
Trade union reform
Trade union reform measures include making it easy for trade union workplace recognition by reducing the requirement of 10% membership at the application stage to 2% and removing the requirement for majority support and the 40% support threshold. The 50% turnout threshold of union members for an industrial action ballot to be valid will also be removed.
The Act also introduces electronic and workplace balloting making voting easier.
Doubling the maximum period of collective redundancy protective award
Where there is a failure by the employer to properly inform and consult on collective redundancies involving 20 or more employees, the amount an employment tribunal can award as a protective award will double from a maximum of 90 days’ gross pay to a new maximum of 180 days’ gross pay.
Establishment of the Fair Work Agency (FWA)
The FWA is due to be established in April 2026. It will be responsible for enforcing rights, including national minimum wage, modern slavery breaches, statutory sick pay and holiday pay. It will also be proactive and have the power to inspect workplaces for compliance as well as issue notices, impose penalties and issue court proceedings.
What employers should be doing now
With April 2026 approaching, forward-thinking organisations should already be preparing. Key steps include:
Policy audits
Review and update:
- Sickness absence policies
- Family and parental leave policies
- Whistleblowing policies
Manager and HR training
Ensure decision-makers and managers understand the reforms and that your systems are ready for April 2026 implementation.
Cultural readiness
For some organisations, these changes will feel challenging. For others, they present a chance to lead, modernise employment practices, and strengthen workplace trust.
Beyond legal compliance, these reforms signal a broader cultural shift toward fairness, wellbeing, and dignity at work. Employers who are proactive and aligned not just with compliance but with the sentiment behind the reforms, may be better placed to attract talent, retain staff and protect their reputation.
If you would like to discuss employment law changes or any of the issues raised in this article, please get in touch.
The legal content provided by RSW Law Limited is for information purposes only and should not be relied on in any specific case without legal or other professional advice.
Copyright is owned by RSW Law Limited and all rights in such copyright are reserved.
