New Employment Law changes for 2026: What your business needs to know

April 2026 marked the introduction of some of the most significant changes brought by the new legislation, which are set out below.

Paternity Leave and Unpaid Parental Leave

• Paternity Leave – now a ‘day one’ right
  • Employees will no longer need 26 weeks’ service to give notice of paternity leave – they can now do so from their first day of employment.

• Unpaid Parental Leave – also a ‘day one’ right
  • Previously requiring one year’s service, ordinary unpaid parental leave is now accessible from day one of employment.

• Additional Bereavement Provision
  • Eligible fathers / partners may take up to 52 weeks of unpaid bereaved partner’s paternity leave if the mother or primary adopter dies.

Statutory Sick Pay (SSP) Reforms

From 6^th April 2026:

• SSP is payable from day one of illness, removing the current 3-day waiting period.
• The lower earnings limit is abolished, meaning more workers will qualify for SSP.
• SSP increased from £118.75 to £123.25 per week.

Collective Redundancy Protective Award Increases

The maximum protective award for failing to properly consult during a collective redundancy process will double from 90 to 180 days’ pay.

Stronger Whistleblowing Protections

Sexual harassment will now count as a qualifying disclosure under whistleblowing laws. This gives workers protection from detriment and unfair dismissal when reporting sexual harassment.

Gender Pay Gap & Menopause Action Plans

From April 2026, employers are now encouraged to create action plans addressing:

• Gender pay gaps
• Menopause support in the workplace

These plans become mandatory for employers with 250+ employees in 2027.

Trade Union Changes

Changes include:

• Streamlined recognition processes
• Allowing electronic voting for union matters

Launch of the Fair Work Agency

A new Fair Work Agency will be introduced to:

• Consolidate various enforcement bodies
• Enforce rights such as holiday pay and SSP
• Conduct workplace inspections
• Bring tribunal cases on workers’ behalf
• Provide legal advice

Updated compensation limits and statutory payments  

From 6th April 2026:

• A week’s pay (for redundancy and basic award for unfair dismissal calculations) rises from £791 to £751.
• The unfair dismissal compensatory award cap increases to £123,543.
• The minimum basic award in specific unfair dismissal cases increases to £9,157.
• Statutory maternity, paternity, adoption, shared parental, neonatal, and bereavement pay rise to £194.32 per week (or 90% of earnings if lower).

Taking action