‘If the Government keeps to its roadmap, the next year will see seismic changes in employment law,’ says Jonathan Lewis, a Solicitor in the employment team with QualitySolicitors Parkinson Wright. ‘Along with the usual increases in statutory pay rates, employers need to know about almost a dozen other changes happening under the new laws.’
Jonathan outlines the April changes and sets out the new rates for statutory pay and the National Minimum Wage, as well as highlighting important new developments expected later this year and in 2027.
Increases in statutory pay rates
Employers should prepare for the annual increases in the following rates:
- National minimum wage from 1 April 2026:
- apprentices from £7.55 to £8.00 per hour;
- workers aged 16 to 17 from £7.55 to £8.00 per hour;
- workers aged 18 to under 21 from £10.00 to £10.85 per hour; and
- national living wage – from aged 21 and over, from £12.21 to £12.71 per hour.
- Family-related statutory pay from 5 April 2026, the rates of statutory maternity pay, statutory paternity pay, statutory adoption pay, statutory shared parental pay, statutory parental bereavement pay, and statutory neonatal pay increase from £187.18 to £194.32 per week.
- Statutory sick pay from 6 April 2026 increases from £118.75 to £123.25 per week.
Changes from 6 April 2026:
- Statutory sick pay reform – statutory sick pay (SSP) will be payable from the first day of sickness, rather than the fourth, and more employees will be entitled to SSP as they will no longer have to earn above the lower earnings limit (currently set at £125 per week). Employees earning less than the SSP rate (£123.25 from 6 April 2026) will receive sick pay at 80% of their normal weekly earnings.
- Day-one right to paternity leave – the six-month service period to qualify for the right to take two weeks of paternity leave will be removed.
- Day-one right to unpaid parental leave – the one-year service period to qualify for the right to take 18 weeks’ unpaid leave to care for a child will be removed.
- Bereaved partners’ paternity leave – a new right will give bereaved partners up to a year’s unpaid paternity leave following the death of the child’s mother within one year of birth. This also applies in adoption placements.
- Paternity leave following shared parental leave – the current restriction on a parent taking paternity leave after having taken shared parental leave will be removed.
- Increase in the collective redundancy protective award – if an employer does not comply with its duty to collectively consult in a redundancy situation, the maximum award will be 180 days’ pay for each employee (up from 90 days).
- Reports of sexual harassment as whistle-blowing – a disclosure of sexual harassment at work will be treated as a whistle-blowing disclosure, giving the employee the same legal protection as whistle-blowers under current laws.
- Simplifying the process for recognition of a trade union – this is the second round of changes to trade union law, following reforms to industrial relations law brought in on 18 February 2026.
From 7 April 2026:
- Establishing the Fair Work Agency – this will bring together existing enforcement agencies, such as the National Minimum Wage Unit, and will have new powers to enforce rights such as holiday pay and statutory sick pay and to bring an employment tribunal claim on behalf of an employee. Its start date for enforcement is not known yet.
From 19 June 2026:
- Complaints procedure for data protection rights – under the Data (Use and Access) Act 2025, employers have to put in place a complaints procedure for individuals to use if they believe their data protection rights have been breached.
Expected from October 2026 (although this could change):
- Negotiating body for adult social care sector – a national body will be established for the negotiation of terms and conditions for workers in this sector. A similar body for school support staff is also expected to start operating this year.
- Allocation of tips – employers will be required to consult with staff on their policy for allocating tips.
- Enhanced duty to prevent sexual harassment – the requirement will be enhanced to take ‘all’ reasonable steps, rather than just ‘reasonable’ steps.
- Employer’s liability for third party harassment – employers will be required to prevent their staff from being harassed by a third party, such as a customer.
- Extension of employment tribunal time limits – currently most claims must be brought within three months of dismissal or any other act on which the claim is based. The time limit will be extended to six months.
- New rights and protections for trade union representatives – including strengthening a trade union’s right to access the workplace.
January 2027 and onwards
Change will continue apace into next year, bringing new rights and reform of existing laws. Perhaps the most significant change will be the reduction of the qualifying period to bring a claim for unfair dismissal from two years to six months. Employers would be wise to start tightening up their policies and practices on monitoring new starters and effective implementation of probationary periods in preparation for this.
How we can help
We can help you get contracts, policies and practices ready for these changes so that your business does not get caught unawares. For further information, please contact Jonathan Lewis or a member of the employment team on 01905 721600 or via email: worcester@parkinsonwright.co.uk
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.