As 2026 gets underway, UK employers face one of the most significant waves of employment law reform in years. These changes will affect everything from pay and leave entitlements to procedures around dismissal and discrimination. Here’s what HR professionals and business leaders need to know — explained through the questions you’re likely to be asking.

What are the big picture employment law changes coming in 2026?

The major reforms stem from the Employment Rights Act 2025, with many provisions coming into force from spring 2026 onwards. The government has said these changes aim to strengthen worker protections and modernise employment law, with staggered implementation throughout the next couple of years.

The reforms for 2026 impact:

• statutory rights (e.g., sick pay, parental leave),
• redundancy and collective consultation,
• whistleblowing and harassment protections,
• trade union procedures and industrial action rules,
• and enforcement through a new Fair Work Agency.

How will pay and statutory rates change from April 2026?

Employers should prepare for the usual annual uplifts in statutory pay rates:

• National Living Wage (NLW) and National Minimum Wage (NMW) will increase from 1 April 2026 across all age bands. I reported the detail of this here
• Statutory family pay rates: Statutory maternity, paternity, adoption, shared parental, and neonatal care pay will increase. Again, I explained the new rates here
• Statutory Sick Pay (SSP): The weekly rate increases from 6 April, and reforms under the Employment Rights Bill will also likely change entitlement rules (see below).

Updating payroll, employment contracts and HR systems in good time for April 2026 will be essential to stay compliant with these changes.

Are there further changes to statutory sick pay and eligibility?

Yes, entitlement reforms under the Employment Rights Bill mean SSP is expected to become payable from day one of sickness absence rather than after three days, and all workers (regardless of income) will qualify by abolishing the lower earnings limit.

HR should review sick leave policies and payroll processes now to reflect these entitlement and rate shifts.

How are parental leave and paternity leave rights changing?

It is proposed that, under the new law, from April 2026 paternity leave and ordinary parental leave will become day-one rights, with no qualifying period for service.

This means employers must amend policies to allow new starters to access these entitlements immediately when the changes come into force.

What is happening with redundancies and collective consultation?

Employers must prepare for increased financial penalties for getting collective consultation wrong.  The maximum protective award for failures in collective redundancy consultation is expected to double from 90 days to 180 days’ pay.

This heightens the importance of following proper consultation procedures when looking at reducing your workforce by 20 employees or more over a rolling 90-day period.

Will whistleblowing and harassment protection rules change?

Yes, whistleblowing protections will expand to include disclosures about sexual harassment, meaning employees reporting such issues will enjoy protection from detriment and unfair dismissal.  Separately, employers should anticipate even more obligations around preventing harassment at work following on from those that came into force in October 2024.

What is the Fair Work Agency and how will it affect employers?

A new enforcement body called the Fair Work Agency is expected to be established in 2026. It will:

• consolidate enforcement functions currently fragmented across different authorities,
• enforce key employment rights including holiday pay and SSP,
• and ensure compliance more consistently.

We await to see the detail of this new agency, but it does mean that employers may be more easily punished if they are found to breach employment law.

Are there changes to trade union procedures and industrial action rules?

The reforms simplify trade union recognition and introduce electronic and workplace balloting. Other expected changes, like reduced notice periods for industrial action and protections against dismissal for participating, are also under consideration.

Do employers need to change policies on zero-hours contracts and shift guarantees?

Yes, the Employment Rights Bill is set to regulate zero-hours contracts by:

• requiring offers of guaranteed hours reflecting usual work patterns,
• requiring reasonable notice for shifts,
• and paying compensation when shifts are cancelled at short notice.

These rights will also apply to agency workers, so businesses using them must update contract templates and rostering practices.

What action steps should HR professionals and business owners take in 2026?

To prepare effectively, employers should:

• Update employment contracts, handbooks and parental/sick leave policies.
• Revise collective redundancy procedures and documentation templates.
• Prepare harassment and whistleblowing policy enhancements in line with new protections.

• Train managers on new rights (e.g., day-one entitlements).
• Check payroll systems for statutory pay changes and SSP entitlement reforms.

• Communicate changes clearly to current staff.
• Use onboarding documentation to highlight new rights for new starters.

Summary

2026 is shaping up to be a transformative year in UK employment law, with significant implications for HR policies, compliance obligations and organisational culture. From day-one rights and SSP reforms to enhanced whistleblowing protections, the changes require proactive planning, and not just reactive updates, to ensure smooth implementation and compliance with the new law.