Eight significant employment law reforms take effect from 6 April 2026, marking the first phase of the government’s Employment Rights Bill. It covers over 30 legal updates across 330 pages and represents the largest upgrade to workers’ rights in a generation.
Removing barriers to Statutory Sick Pay
From April, Statutory Sick Pay (SSP) eligibility expands to include low-paid and part-time workers who previously earned below the Lower Earnings Limit of £125 per week. The three-day waiting period for SSP is abolished, so pay now starts from day one of sickness.
Employers must provide either 80% of the worker’s average weekly earnings or the flat statutory rate of £123.25 per week, whichever is lower, to avoid overpayment for lower earners. Transitional rules protect those already on SSP when the changes take effect, ensuring no reduction in their current entitlements.
Fair Work Agency launches as enforcement body
A new agency within the Department for Business and Trade will oversee enforcement of National Minimum Wage, SSP, and holiday pay. The Fair Work Agency (FWA) can impose financial penalties up to 200% through court, bring tribunal claims for workers, and offer legal support. Regulations will enable charging employers for enforcement costs.
Stricter collective redundancy consultation
Businesses planning to make 20 or more redundancies within 90 days must formally consult staff. This includes explaining the reasons, sharing information, and allowing time for response before decisions. Large UK contractors operating multiple sites risk unintentionally hitting the 20-worker threshold during team restructuring or seasonal downturns.
Poor or missed consultation can lead to protective awards of up to 180 days’ pay per affected worker, making early and thorough planning critical.
Day-one rights for paternity and unpaid parental leave
Workers will no longer need a qualifying period of service before taking Paternity Leave or Unpaid Parental Leave. This change removes service-length requirements from policies and contracts. Since 18 February 2026, employees could request day-one paternity leave, with unpaid parental leave to follow in April. Managers need to prepare for these immediate entitlement requests.
Whistleblowing protections extended
Disclosures about sexual harassment are now explicitly protected under whistleblowing law, covering past, present, and anticipated incidents. Workers making these disclosures are protected from detriment, such as adverse treatment or unfair dismissal. Previously, these disclosures had to fit within existing categories like criminal offences or health and safety risks to qualify.
Simplified trade union recognition and industrial action
Most provisions of the Trade Union Act 2016 are repealed, making industrial action easier to organise. Notice periods fall to 10 days, ballots remain valid for 12 months, and unions have fewer requirements for action notices and picket supervision. Employees gain stronger unfair dismissal protection, with the previous 12-week limit removed.
Recognition ballots will adopt a simple majority threshold. Barriers preventing independent unions from applying are removed. Additional reforms are anticipated later in 2026.
Gender pay gap and menopause action plans
Employers with over 250 staff can publish voluntary gender equality action plans alongside gender pay gap reports from April 2026. These plans must include evidence-based actions to reduce pay gaps and support employees experiencing menopause.
Publication of these plans will become mandatory in spring 2027, pending secondary legislation. Employers must select at least one action in each area but are encouraged to implement broader cultural and operational changes. Detailed guidance is available on the government website.
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