Employment Rights Act 2025: get ready for the April 2026 changes
April is fast approaching and will involve some significant changes to UK Employment Law. Now is the time for HR Personnel to “get ready” for the changes that are coming into force, and this article aims to set out these changes and highlight the annual statutory rate increases that are usual at this time of year.
From 1 April 2026, the usual rate changes come into force, including the increases to hourly rates, which will be as follows:
- £12.71 – National Living Wage (age 21+)
- £10.85 – ages 18–20
- £8.00 – ages 16–17
- £8.00 – apprentice rate
- £11.10/day – accommodation offset.
The week’s pay for redundancy will increase to £751 (for dismissals taking effect from 6 April 2026). The rate for Statutory Sick Pay will increase to £123.25 per week. Statutory family leave will increase to £194.32 per week (where other rates are not applicable).
There will also be an abolition of the Certificate Officer levy, signalling a pro-union policy direction from the Government.
From 6 April 2026, some of the Employment Rights Act 2025 reforms will also come into effect:
- along with the increases to the cost of SSP, the substantive changes to SSP also come into effect. This becomes a day-one payment, with the waiting days abolished and the lower earnings limit removed. This could be a very significant change financially to companies that currently rely on the waiting days
- day one rights for paternity leave, and unpaid parental leave, which come into effect
- the Bereaved Partners’ Paternity Leave Regulations 2026 come into effect, allowing a father or partner (subject to eligibility requirements) to take up to 52 weeks off (unpaid) to care for a child in the first year of life or after adoption, where there has been a death of the mother, primary adopter or intended parent in a surrogacy situation
- sexual harassment disclosures will be explicitly protected under whistleblowing legislation
- the protective award for failures to consult properly in collective redundancies will double from 90 to 180 days’ pay per employee
- the voluntary phase for equality action plans and menopause action plans commences (mandatory phase expected in 2027 for businesses with 250+ employees)
- trade union reforms start to take place, including a simplified recognition process.
In order to properly prepare for the changes, employers should consider contracts and handbooks to ensure everything is updated, and consider internal management and business plans particularly where increased costs are likely. Managers should also receive training in order to understand the developments in this area and how they may affect staff.
Contact our employment law solicitors today
If you require further support, we would be happy to discuss the changes in detail with you and see how Ashtons Legal can assist your business further.
If you have any questions or concerns about the updates provided above, please contact a member of our Employment Law team. You can use our online enquiry form or call 0330 191 5713.
Tags: Business, Employee, Employer, Employment, Employment Rights Act 2025, National Living Wage, National Minimum Wage, Solicitors, Statutory Sick Pay
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