A raft of employment law changes will come into force in April 2026. In this article, we summarise the key developments and outline what you should be doing now to make sure your organisation is prepared.

While many of these changes are introduced as a result of the Employment Rights Act 2025 (ERA), others will be implemented under separate legislation.

1 April 2026

National minimum wage rates

The change

The Government has announced the 2026 increases to the National Minimum Wage (NMW), including the National Living Wage, effective from 1 April 2026. The National Living Wage (for workers aged 21 and over) will increase to £12.71; the rate for 18 to 20 year olds will be £10.85; the rate for 16 to 17 year olds will be £8; and the Apprentice rate shall be £8. The accommodation offset limit will be £11.10.

Note that other prescribed statutory rates are also increasing from 5/6 April 2026. These include those for family related leave (including maternity, paternity, adoption, shared parental, parental bereavement and neonatal care pay) and statutory sick pay.

Action

With rates going up, you should audit your pay practices and take any necessary steps to ensure compliance.

6 April 2026

Changes to paternity leave and parental leave

The change

Further to changes introduced by the ERA paternity leave (but not paternity pay) will become a day one right for eligible employees. In addition, the current restriction on taking paternity leave or receiving statutory paternity pay following a period of shared parental leave or shared parental pay will be removed. Unpaid parental leave will also become a day one right for eligible employees.

Separate legislation for bereaved partner’s paternity leave (BPPL) will also come into force on 6 April 2026, allowing for up to 52 weeks’ BPPL after a child’s birth or placement for adoption where the child’s primary carer (usually mother or co- adopter) dies within that time.

Action

The reforms strengthen and modernise protections around family-related leave. You should review and update family-leave policies to reflect the changes.

Changes to Statutory Sick Pay

The change

As a result of changes under the ERA statutory sick pay (SSP) will be paid from the first day of illness and the lower earnings limit for eligibility will be removed (whilst introducing a new system to provide a fair earnings replacement for those earning below the current rate of SSP).

Action

You’ll need to revise sickness policies and ensure payroll systems are updated to reflect the changes. With higher sickness absence costs, you should explore steps you can take to support employees and reduce levels of sickness absence.

Collective redundancy protective award

The change

The maximum protective award for a breach of the collective consultation requirements on redundancy will double from 90 days’ pay to 180 days’ pay as a result of changes under the ERA. This change is expected to come into force on 6 April 2026.

Action

This change will significantly increase the cost of non-compliance with the obligation to consult collectively. If you have redundancies in the pipeline, you should ensure that proposed dismissal numbers are accurately tracked, and make sure you understand and comply with the collective consultation regime where these obligations are triggered. Additionally, failing to comply with the obligation to file an HR1 notice in respect of collective redundancies is a criminal offence.

Whistleblowing protections for sexual harassment

The change

Sexual harassment will become a qualifying disclosure under whistleblowing law further to changes under the ERA. This will mean protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure (i.e., a report that sexual harassment has occurred, is occurring or is likely to occur). This change is expected to come into force on 6 April 2026.

Action

You should review and update whistleblowing policies where required and ensure that appropriate protection is in place for workers who report sexual harassment, so they are not subjected to any detriment or dismissal as a result. Disclosures about sexual harassment should also be excluded from the scope of any confidentiality provisions, for example in a settlement agreement.

Gender pay gap and menopause action plans

The change

The government has published guidance on new requirements for employers to create and publish gender equality action plans under the ERA (which will need to include steps to address the gender pay gap and support employees experiencing the menopause). See: Government launches landmark gender pay gap and menopause action plans to help women thrive at work – GOV.UK. The provisions in relation to action plans will be introduced on a voluntary basis from 6 April 2026 and are expected to become mandatory for large employers (with 250 or more employees) from April 2027.

Action

You should familiarise yourself with the recently published guidance, and if you’re a large employer, you’ll need to start to consider what steps you need to take to ensure you’re ready to comply with the new requirements before they come into force in 2027.

Simplification of trade union recognition

The change

A number of changes under the ERA are expected to come into force from 6 April 2026, simplifying the statutory trade union recognition process. These include giving the government the power to reduce the required percentage of trade union members in a bargaining unit for the Central Arbitration Committee (CAC) to accept an application to between 2% and 10% (it is currently 10%). The reforms will also remove the requirement for a union to demonstrate likely majority support for recognition, as well as the 40% support threshold in recognition ballots.

Action

These changes, along with further reforms expected later this year which are likely to increase trade union visibility in the workplace, may lead to more applications for recognition. If you haven’t dealt with trade unions before, you should be prepared for the possibility of recognition applications and the need to work with trade unions in the future. Proactive employee relations strategies will become even more important so that employees are engaged and feel their concerns are addressed.

See our article for further detail on the changes to the law in this area Trade unions and industrial action: key upcoming changes and how employers can navigate the shifting landscape – Walker Morris

7 April 2026

Establishment of Fair Work Agency

The change

The Fair Work Agency (FWA) is expected to be established on 7 April 2026 within the Department for Business and Trade, to bring together existing enforcement bodies, to enforce employment laws including National Minimum Wage, SSP, holiday pay and agency worker regulations. It will have the power to inspect business premises and documentation, and issue civil penalties. This is another change introduced by the ERA.

Action

Although many of the powers of the FWA can already be exercised by other bodies, the creation of the new body is an indication of the intention to take more action to tackle systematic non-compliance. You should audit your practices to ensure compliance with the relevant statutory frameworks.

For further detail on how the ERA changes affect you, use our ERA tracker: Employment Rights Act – Walker Morris

If you need support or have any questions, please get in touch with Charlotte Smith, Lucy Gordon, Shabana Muneer, Andrew Rayment or our Employment team.