Employment law changes in April 2026 and what they mean for you
April 2026 brings another set of employment law updates, including the first phase of reforms under the Employment Rights Act 2025. Let’s find out what you need to know, and how these changes might affect you.
The National Minimum Wage is set to increase for all employees. From 6th April 2026, the minimum hourly rates will be as follows:
Apprentices in their first year must be paid a minimum of £8 per hour, regardless of their age. Once an apprentice has completed their first year, they’re entitled to the minimum wage rate for their age.
Several statutory payments will increase on 6th April.
Statutory Sick Pay will be £123.25 or 80% of the employee’s average weekly earnings, whichever is lower.
The following types of statutory payment will increase to £194.32 or 90% of the employee’s average weekly earnings, whichever is lower:
The maximum weekly pay used to calculate statutory redundancy pay will increase to £751 per week.
If an Employment Tribunal finds that a claimant has been unfairly dismissed, the compensation is usually made up of two parts:
From 6 April, the maximum weekly pay used to calculate the basic award will increase to £751. The maximum value of the compensatory award will increase to £123,543.
In discrimination and whistleblowing cases, Employment Tribunals use Vento bands to decide how much to award an employee who has suffered injury to feelings.
For claims presented on or after 6 April 2026, the bands increase to:
In the most exceptional cases, the award may now exceed £62,900.
We know it takes bravery and strength to speak out against acts of discrimination or wrongdoing. Find out how Valla can support you through the process.
The Employment Rights Act 2025 – which began life as the Employment Rights Bill – brings about what the government has called "the biggest upgrade to rights at work for a generation".
The first phase of reforms under the Employment Rights Act will come into effect in April 2026.
From 6th April, both paternity leave and ordinary parental leave (or unpaid parental leave) will become day-one rights.
This means employees will be able to give notice to take these types of leave from their first day of employment. No minimum length of service will be required.
Employees will also be able to take paternity leave even if they have already taken Shared Parental Leave.
From 6th April 2026, employers must pay Statutory Sick Pay (SSP) from the first day of illness, instead of the fourth day.
Workers will no longer have to earn a minimum amount (known as ‘the lower earnings limit’) to be eligible for SSP.
Under the Employment Rights Act, protections for workplace whistleblowing are expanding to include sexual harassment.
When an employee ‘blows the whistle’ on wrongdoing at work, certain types of reports are treated as’ protected disclosures’ and come with specific legal protections. On 6th April 2026, reporting sexual harassment will become a protected disclosure.
Whistleblowers who make a sexual harassment disclosure will be protected from both unfair dismissal and “detriment” – either being treated worse than before or having their situation made worse – because they made the disclosure.
Before making 20 or more redundancies within a 90-day period (known as a ‘collective redundancy’), employers must consult with any recognised trade union or – in the absence of one – employee representatives about plans. This is known as a collective consultation.
If an employer fails to follow this process, employees can make an Employment Tribunal claim for a form of compensation called a Protective Award.
From 6th April, the maximum potential value of a collective redundancy protective award will double from 90 days' pay to 180 days' pay.
On 7th April 2026, a new government agency will be established to enforce employment rights and protect workers from exploitation.
The Fair Work Agency (FWA) will ensure that employers follow all the relevant rules, including paying the right amount of National Minimum Wage, holiday pay, statutory sick pay.
The government has said that the FWA will be “a single place where workers and employees can turn for help”.
More reforms under the Employment Rights Act are on their way later in 2026 and in 2027. Here at Valla, we’ll be reporting all the latest changes as they happen. Keep an eye on our blog for further updates – or sign up to our emails to get the news straight to your inbox.