Let’s be honest: employment law updates don’t usually make anyone leap out of bed with excitement.
But 2026 is shaping up to be a big one. Think higher pay, stronger worker protections, tighter rules for employers, and a brand-new enforcement body with actual teeth.
There’s plenty for both employers and employees to be aware of – so we’ve broken it down into digestible chunks.
Partly because it makes it easier to understand and partly because we also don’t understand the legal jargon…
First… What’s going on?
Most of these changes come from the Employment Rights Act 2025 and related regulations. Translation? The government is giving workers more protection and giving regulators more power.
What employers should know
Pay is going up
From April 2026:
- National Living Wage (21+): £12.71
- 18-20 Year Old Rate: £10.85
- 16-17 Year Old Rate: £8.00
- Apprentice Rate: £8.00
- Statutory maternity, paternity, adoption and shared parental pay increase
- Statutory Sick Pay rises to £123.25 per week
Why it matters:
Payroll errors = fines, back pay, reputational damage, and awkward conversations.
Action:
Check pay rates now. Budget early. Sleep better later.
Sick pay starts on day one
Big shift incoming:
- SSP payable from day one
- No lower earnings limit
- No three-day waiting period
Why it matters:
More staff will qualify. More absences will be paid.
Action:
Update payroll, absence policies and manager training.
Family leave becomes day-one
From April 2026:
- Paternity leave = day-one right
- Unpaid parental leave = day-one right
Why it matters:
Length of service is no longer factor to consider.
Action:
Update contracts and family policies.
Redundancy mistakes get VERY expensive
Fail to properly consult on collective redundancies?
- Protective award doubles from 90 days’ pay to 180 days’ pay per employee.
Yes. Per employee.
Action:
Get advice early. Follow consultation rules properly. No shortcuts.
Fair work agency is coming
A new single enforcement body will police:
- Minimum wage
- SSP
- Holiday pay
- Statutory family pay
- Zero-hours abuses
- Labour exploitation
They won’t just wait for complaints – they’ll actively investigate.
Action:
Assume enforcement will increase. Fix problems before someone else finds them.
Zero-hours contracts get a makeover
Workers who regularly work set patterns must be:
- Offered guaranteed hours
- Paid compensation for short-notice shift cancellations
- Applies to agency workers too
Action:
Review casual and flexible workforce models.
Fire-and-rehire becomes radioactive
From October 2026:
- Dismissals for refusing restricted contractual changes (pay, hours, pensions etc.) become automatically unfair unless strongly justified.
Action:
Stop seeing fire-and-rehire as a “tool.” It’s now a legal landmine.
Harassment prevention gets serious
- Duty to take “all reasonable steps” to prevent sexual harassment
- Includes harassment by customers, clients and third parties
Action:
Training, reporting routes, risk assessments, policies, culture.
Tribunal time limits double
Employees get six months (not three) to bring most claims.
Action:
Expect more claims. Keep records. Document decisions properly.
What employees should know
You could be getting a pay rise
- National Living Wage up to £12.71/hour
- Statutory pay rates rising
Translation:
Better baseline pay.
Sick pay from day one
You no longer need to:
- Earn over a minimum amount
- Wait three days
If you’re sick, you get SSP immediately.
Translation:
Less pressure to work while ill.
Family leave from day one
Starting a new job and expecting a baby?
- You still get paternity leave
- You still get unpaid parental leave
Translation:
No more “you haven’t worked here long enough.”
More predictable hours
If you regularly work the same hours:
- You can ask for guaranteed hours
- You get compensation if shifts are cancelled at short notice
Translation:
Less income roulette.
Protection against fire-and-rehire
If your employer tries to sack you for refusing worse terms:
- That dismissal is likely automatically unfair
Translation:
You don’t have to accept a bad deal just to keep your job.
Stronger harassment protection
- Employers must actively prevent harassment
- Complaints about sexual harassment are protected whistleblowing
Translation
You can speak up with stronger legal backing.
NDAs won’t work
No one can legally force you into silence about harassment or discrimination.
Translation:
Your voice matters.
More time to bring claims
- Tribunal deadline doubles to six months
Translation:
More breathing room to get advice.
The bigger picture
These reforms are about shifting power:
- Away from exploitative practices
- Toward fairness, predictability and dignity at work
For employers: preparation beats panic.
For employees: knowledge is power.