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April 2026 employment law changes
April is traditionally the time when certain employment law changes take place. This year it’s augmented by the Employment Rights Act 2025 (ERA25). Summarised below are the main changes.
Trade union recognition
Union recognition by an employer will be streamlined, from 6 April, in three key areas:
- Lower membership threshold: the requirement to show that at least 10% of workers in the bargaining unit are union members will be reduced.
- No need to show likely support: the requirement to show that at least 50% of workers in the bargaining unit are likely to support recognition is removed.
- Ballot support thresholds: a simple majority of those who vote in the bargaining unit will be enough to secure recognition, removing the current requirement for at least 40% of eligible voters to back it.
For more on union reforms under the ERA25, see here.
Statutory paternity and parental leave
Statutory paternity leave and unpaid parental leave previously had qualifying periods of 26 weeks and 1 year respectively. From 6 April, these qualifying periods are removed, and both will become Day 1 rights. The restriction that prevented employers from taking paternity leave after a period of shared parental leave will also be removed. See here for further information.
Holiday records
From 6 April 2026, employers have a statutory duty to keep records of holiday pay and annual leave. See further.
Statutory sick pay (SSP)
The ERA25 expands eligibility for SSP by removing both the 3-day waiting period and the lower earnings threshold. From 6 April, SSP will become payable from day one of absence (instead of day four) and will cover employees regardless of their level of income. The rate of SSP is also changing, so instead of a fixed weekly rate, employees will receive the lower of the flat rate or 80% of their normal weekly earnings.
Gender pay gap and menopause action plans
The ERA25 introduces a new requirement for employers with 250 or more employees to publish equality action plans covering reducing their gender pay gaps and supporting women through the menopause.
Employers can publish these reports on a voluntary basis from April 2026, but publication will become mandatory in April 2027.
Fair Work Agency
A new state enforcement body, the Fair Work Agency (FWA), will be established on 7 April. It will be able to enforce statutory payments dating from December 2025 (when the ERA25 was enacted).
The FWA will take over enforcing employment law in areas covered by existing agencies including modern slavery, gangmasters licensing, operation of agencies and employment businesses, sick pay and minimum wage. It will also gain new powers to enforce holiday pay. See further.
Protective awards
Employers that fail to comply with collective redundancy consultation rules face greater financial risk from 6 April. The ERA25 increases the protective award – the maximum compensation that a tribunal can award for compliance failure – from 90 to 180 days’ gross pay per affected employee.
National Minimum Wage
From 1 April, all the national minimum wage rates increase.
Statutory rates
The statutory rates used for statutory maternity, paternity, shared parental, adoption, neonatal care pay and parental bereavement pay, will increase.
From Sunday, 5 April, the weekly rates of statutory maternity, adoption, paternity, shared parental, neonatal care and parental bereavement pay increase from £187.18 to £194.32. The lower earnings threshold increases £125 to £129 a week. The weekly rate of statutory sick pay (SSP) is increasing to £123.25, while the lower earnings limit will rise from £125 to £129.
Tribunal compensation limits
From 6 April, the limits in relation to unfair dismissal/redundancy pay are increasing as follows:
- Basic award: increasing from £8,763 to £9,157.
- Compensatory award: increasing from £118,223 to £123,543.
- Maximum amount of a ‘week’s pay’: increasing from £719 to £751.
