This year is an exceptional year for changes in employment law. The Employment Rights Act 2025 taking force, we are seeing changes on an unprecedented level. The good news is the changes are been staggered over 2026 and 2027.
The first changes are happening from 6th April 2026 which include
STATUTORY SICK PAY (SSP) - Payable from day one of sickness for all employees as removal of waiting period and lower earnings limit
FAMILY LEAVE - Paternity leave and unpaid parental leave are applicable from day one of employment. Qualifying period still in place for paternity pay.
HOLIDAY RECORDS - New requirement for employers to keep records of holiday leave, entitlement and holiday pay for six years
WHISTLEBLOWING - Sexual harassment is now a protected disclosure
TRADE UNIONS - Simplified process for trade union to organise, gain recognition and take industrial action.
COLLECTIVE REDUNDANCY RULES - Maximum protective award for not consulting correctly will double from 90 days’ gross pay per employee to 180 days’ pay per employee.
FAIR WORK AGENCY (FWA) - From 7th April, the FWA will have the power to investigate employers, review payroll records, contracts, rotas and payslips, interview staff, issue legally enforceable compliance notices and impose financial penalties. It will also be able to recover unpaid sums such as SSP or holiday pay on behalf of employees, without the need for a tribunal claim.
Statutory rates increase from the 1st April saw their usual annual increase. The new rates are:
Age Rate
21 and over £12.71
18 - 20 £10.85
16 - 17 £8.00
Apprentices £8.00
Other Statutory payments have also increased:
Statutory sick pay increases to £123.25 a week.
Statutory family leave payments for maternity, paternity, adoption, shared parental and parental bereavement leave increase to £194.32 per week.
Statutory redundancy payments increase to £751 for each qualifying week
Compensation awards limits have also seen an increase. The maximum compensation award for unfair dismissal, from 6th April 2026, is £123,543. The maximum veto bands for injury to feelings are £12,600 for the lower band, £37,700 for the middle band and £62,900 for the upper band.
Bereaved partner's paternity pay has also been introduced from 6th April 2026. This allows bereaved partners up to 52 weeks of leave from day one of employment if the child’s mother / primary carer dies within the first year after birth or adoption. The leave is unpaid, though employers may choose to offer paid leave on compassionate grounds. Normal employment terms continue including holiday accrual. except pay. Job protections apply, including protection from dismissal / redundancy and the right to return to the same job (or a suitable alternative after longer leave).
For support with any of the changes, or any HR or employment challenges, get in touch at hello@dynamic-ps.co.uk
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