April 2026 marks one of the most significant tranches of Employment Law reform in recent years. A combination of reforms introduced by the Employment Rights Act 2025 (ERA 2025) and wider statutory updates will affect pay, statutory entitlements, whistleblowing protections, record‑keeping obligations and enforcement.
With further reforms already in the pipeline for the rest of the year and 2027, Employers should treat 2026 as a critical transition year. Below is a practical overview of the key changes taking effect this April and what organisations should be doing now.
From 1 April 2026, the new hourly rates are:
These uplifts exceed forecast inflation and represent a real‑terms pay increase for workers.
Employer action
Review salary sacrifice arrangements to ensure minimum wage compliance
From 6 April 2026, the weekly statutory rate will increase to £194.32 (from £187.18) for:
Employer action
Significant changes to Statutory Sick Pay (SSP) take effect from 6 April 2026 with:
Although transitional provisions apply to absences starting just before 6 April, the safest practical approach is to apply the day‑one entitlement.
Employer action
From 6 April 2026, qualifying service requirements will be removed for:
Employees will be entitled to both from day one of employment, subject to the remaining eligibility criteria. Employees will also no longer be prevented from taking paternity leave after shared parental leave, increasing flexibility for families.
Employer action
For dismissals taking effect on or after 6 April 2026, tribunal limits will increase to:
More significantly, the ERA 2025 provides that the compensatory cap for unfair dismissal will be removed entirely for dismissals taking effect from 1 January 2027, substantially increasing financial exposure.
Employer action
Updated Vento bands were recently published and apply to compensation for injury to feelings in discrimination claims.
The new bands
Exceptional cases may exceed the upper band.
Employer action
From 6 April 2026, the definition of a protected disclosure in whistleblowing legislation will be expanded.
As a result, employees who report sexual harassment may benefit from enhanced whistleblowing protections, including protection from detriment and dismissal.
Employer action
In a late and unexpected development, regulations published on 24 March 2026 confirm that from 6 April 2026, Employers will be under a new statutory duty to keep and retain annual leave and holiday pay records.
Records must cover
Records must be retained for six years and kept in a format the employer reasonably considers appropriate.
In due course, enforcement of holiday obligations is expected to fall within the remit of the Fair Work Agency (see below).
Employer action
The Fair Work Agency (FWA) will be established on 7 April 2026. It will (over time) consolidate enforcement functions including:
Its powers will be rolled out in stages through further regulations, but Employers should expect an increasingly proactive enforcement landscape.
The reforms taking effect in April 2026 represent a profound shift in the balance of workplace rights. Worker protections are being strengthened, enforcement is becoming more centralised, and Employer compliance obligations are increasing in both scope and complexity.
Organisations that prepare early, audit their practices, and update training and documentation will be best placed to manage risk, maintain workforce stability and navigate this evolving legal landscape.
Our blogs and articles are not meant to serve as legal advice for any specific issue. The author assumes no responsibility for the accuracy of the content or any consequences that may arise from relying on it.