Employment Law Changes 2026: What Employers Need to Know

Key Takeaways

• SSP is now payable from the first full day of sickness absence (waiting period removed).
• Lower Earnings Limit for SSP has been removed.
• Paternity and Unpaid Parental Leave are now day-one rights.
• New right to Bereaved Partner's Paternity Leave (up to 52 weeks).
• Protective award for collective redundancy failure doubled to 180 days.
• Unfair dismissal qualifying period reduced to 6 months from Jan 2027.

Introduction

Since February 2026, significant employment law reforms have begun to take effect. These changes, developed in partnership with businesses, aim to create a productive, fair economy that works for both employers and employees.

This guide summarises the key changes that have already taken effect and those coming into force later in 2026 and 2027. We recommend reviewing your policies and procedures to ensure compliance.

1. National Minimum Wage and National Living Wage: 1 April 2026

The National Minimum Wage and National Living Wage rates increased on 1 April 2026:

• Age 21+ - increase from £12.21 to £12.71
• Age 18-20 - increase from £10 to 10.85
• Under 18 - increase from £7.55 to £8
• Apprentice - increase from £7.55 to £8

2. Statutory Sick Pay (SSP)

What has changed:

• SSP is now payable from the first full day of sickness absence (the three-day waiting period has been removed).
• SSP is available to all eligible employees regardless of earnings – the Lower Earnings Limit has been removed.
• SSP is calculated at 80% of average weekly earnings or the flat weekly rate, whichever is lower.

Action required:

• Review your sickness absence policies and remove references to waiting periods or earnings thresholds.
• Check with your payroll provider how the changes will affect your payroll system.
• Communicate the changes to your management teams and staff.

3. Paternity Leave and Unpaid Parental Leave

What has changed:

• Employees can now give notice of Paternity Leave from their first day of employment (previously required 26 weeks' service).
• Employees can now give notice of Unpaid Parental Leave from their first day of employment (previously required one year's service).
• Fathers and partners can now take Paternity Leave and Pay after Shared Parental Leave and Pay (previously not allowed).

Note on notice periods: For babies due before 26 July 2026, the notice period is temporarily reduced to 28 days. Standard notice requirements (15 weeks before Expected Week of Childbirth) apply for babies due on or after 26 July 2026.

Action required:

• Update your Paternity Leave and Parental Leave policies to reflect day-one eligibility.
• Update your employee handbook and template documents.
• Ensure your HR systems can process leave requests from new starters.

4. Bereaved Partner's Paternity Leave: New Right

What has changed:

• A new right to Bereaved Partner's Paternity Leave supports employees who lose their partner or the mother of their child within the first year of their child's life or adoption.
• Employees may be eligible for up to 52 weeks of leave, depending on when the bereavement occurs.
• This is a day-one right – no minimum service required.
• There is no statutory pay requirement – paid leave is at employer discretion.

Action required:

• Check your bereavement and compassionate leave policies to ensure they include, or go further than, the new entitlement.
• Consider whether you will offer paid leave (not legally required but may support staff wellbeing).
• Build line manager capability in handling sensitive requests.

5. Fair Work Agency

What has changed:

• The new Fair Work Agency brings together enforcement of key employment rights into one body, including National Minimum Wage, agency worker protections, and gangmaster licensing.
• The agency has powers to investigate breaches, issue civil penalties and take action against labour exploitation.
• Over time, the agency will take on enforcement of additional rights such as holiday pay.

What this means for employers:

• The Fair Work Agency does not create new legal obligations, but inspections and enforcement may operate differently.
• General enquiries can be submitted to contact@fairworkagency.gov.uk

Action required:

• Familiarise yourself with the Fair Work Agency's enforcement policy statement.
• Review your compliance with existing employment rights (National Minimum Wage, holiday pay, agency worker regulations).
• Review your record-keeping policies to ensure you can demonstrate compliance.

6. Collective Redundancy: Increased Protective Award

What has changed:

• The maximum protective award for failing to meet collective redundancy consultation obligations has increased from 90 days' pay to 180 days' pay per affected employee.
• This applies where an employer fails to properly consult appropriate employee representatives when proposing 20 or more redundancies at one establishment within a 90-day period.

Action required:

• Check your collective redundancy policies and procedures to ensure they meet legal requirements.
• Brief HR teams and senior managers on the increased penalties.
• Ensure you have processes to identify when collective redundancies are triggered.
• Seek legal advice if planning significant workforce changes.

7. Trade Union Changes: Repeal of Trade Union Act 2016

What has changed:

• Unions now have a 10-day notice period for industrial action (reduced from 14 days).
• Ballots approving industrial action have a 12-month mandate (increased from 6 months).
• Unions are no longer required to reimburse employers for check-off administration in the public sector.
• Unions are not required to appoint a picket supervisor.
• Employees are protected from unfair dismissal for taking part in industrial action, whatever the length (12-week cap removed).
• Simple majority now required in recognition ballots (40% support threshold removed).

Action required:

• Review your internal policies and processes to ensure compatibility with the new legislation.
• Read the updated Code of Practice on Industrial Action Ballots and Notice to Employers.

8. Whistleblowing Protections for Sexual Harassment

What has changed:

Workers who report sexual harassment at work now benefit from protection under whistleblowing law. Previously, a worker had to claim their disclosure fell under existing categories of wrongdoing such as danger to health and safety.

Action required:

• Check your whistleblowing policy is up to date.
• Brief managers on the updated protections.

9. Employer Action Plans: Gender Pay Gap (250+ employees)

What has changed:

• Employers with 250 or more employees now have the option to produce and publish a voluntary action plan alongside their gender pay gap data.
• These will become mandatory from spring 2027, subject to secondary legislation.
• Action plans must show steps being taken to reduce the gender pay gap and support employees experiencing menopause.

Action required:

• Consider preparing a voluntary action plan now to get ahead of the mandatory requirement.
• Review your gender pay gap data and identify actions to reduce it.

10. Unfair Dismissal Rights: From 1 January 2027

What will change:

• The qualifying period for protection against ordinary unfair dismissal will be reduced from two years to six months.
• The qualifying period for employees' right to request written reasons for dismissal will be reduced from two years to six months.
• The qualifying period for protection against unfair dismissal for reason of spent convictions will be removed.
• If the dismissed employee's effective date of termination is on or after 1 January 2027 and they have 6 months' service, they will have the right to claim unfair dismissal.

Important note:

Day-one protections against discrimination and automatically unfair grounds for dismissal remain unchanged.

The non-renewal of a fixed-term contract on expiry counts as a dismissal for unfair dismissal purposes – this remains unchanged.

Action required:

• Review your employment policies and probation periods to ensure they will operate effectively with a 6-month qualifying period.
• Seek independent advice when considering updating your employment policies.
• Ensure managers understand the implications of the shorter qualifying period.

How We Can Help

At Silicon Law, we understand that keeping up with employment law changes can be challenging. We can assist with:

• Reviewing and updating your employment policies and handbooks.
• Advising on compliance with the new requirements.
• Training your HR teams and managers on the changes.
• Assisting with any disputes or claims.
• Providing ongoing legal support (not limited to employment) through our retainer services.

For further advice or assistance, please contact us at info@silicon.law

You can also complete our free compliance audit to assess your current position.