April 2026 Payroll & Employment Law Changes: What Every Employer Needs to Know
The Employment Rights Act 2025 (ERA 2025) has brought the most significant wave of employment law reforms in a generation, with the first major phase coming into force on 1 and 6 April 2026. These changes affect pay, statutory sick pay, family leave, redundancy, whistleblowing, record-keeping and enforcement. Here is everything you need to know to stay compliant.
1. National Minimum Wage and National Living Wage increases (1 April 2026)
From 1 April 2026, all National Minimum Wage and National Living Wage rates increased. Employers must make sure their payroll reflects the new rates immediately:
- Workers aged 21 and over (National Living Wage): £12.71 per hour (up from £12.21)
- Workers aged 18–20: £10.85 per hour (up from £10.00)
- Workers aged 16–17 and apprentices: £8.00 per hour (up from £7.55)
Action required: audit pay practices that could accidentally take pay below NMW — including deductions, training time, uniform policies and salary sacrifice arrangements.
2. Statutory Sick Pay reforms (6 April 2026)
The SSP rules have been significantly overhauled from 6 April 2026:
- No more waiting days — SSP is now payable from the first day of sickness (previously from day four).
- Lower earnings limit removed — employees earning below the previous £125 a week threshold are now eligible.
- New SSP rate: £123.25 per week, or 80% of average weekly earnings if lower.
- Transitional protection: employees already receiving SSP before 6 April 2026 continue at the flat rate until their entitlement ends.
Action required: update payroll systems, sick pay policies and employment contracts. Consider the financial impact, particularly in sectors with high levels of short-term absence.
3. Day-one family leave rights (6 April 2026)
ERA 2025 removes the qualifying service requirements for paternity leave and unpaid parental leave. From 6 April 2026:
- Paternity leave is a day-one right — the previous 26-week qualifying service requirement has been removed.
- Unpaid parental leave is a day-one right — the previous one-year service requirement has been removed.
- Paternity leave can now be taken after Shared Parental Leave — the previous restriction has gone.
- Bereaved Partner’s Paternity Leave — a new right to up to 52 weeks of unpaid leave where a child’s mother or primary adopter dies within a year of the birth or adoption.
Statutory paternity pay keeps its own eligibility rules. These changes apply to babies born, or adoptions placed, on or after 6 April 2026.
4. Statutory family pay rate increase (6 April 2026)
Statutory Maternity, Paternity, Adoption, Shared Parental, Parental Bereavement and Neonatal Care Pay, and Maternity Allowance, all increased from £187.18 to £194.32 per week from 6 April 2026.
5. Collective redundancy: protective award doubled (6 April 2026)
The maximum protective award for failing to consult properly on collective redundancies has doubled. Employment tribunals can now award up to 180 days’ pay per affected employee (previously 90 days). The statutory redundancy weekly pay cap has also risen from £719 to £751.
Action required: make sure managers are trained on collective consultation requirements, and keep careful records of redundancy dismissals so you don’t trigger the thresholds by accident.
6. Whistleblowing: sexual harassment now a protected disclosure (6 April 2026)
From 6 April 2026, disclosures of sexual harassment count as protected whistleblowing. Employees who report sexual harassment — of themselves or others — are now protected from dismissal and detriment. Update whistleblowing and harassment policies and train managers on the new requirements.
7. Holiday pay and annual leave record-keeping (6 April 2026)
All employers must now keep “adequate” records of annual leave and holiday pay, including the dates of leave taken, amounts paid and payments in lieu of holiday. These records must be kept for six years. The Fair Work Agency has enforcement powers in this area, including the ability to pursue criminal sanctions.
8. The Fair Work Agency launched (7 April 2026)
The Fair Work Agency was established on 7 April 2026, bringing together enforcement powers previously held by several bodies, including those for National Minimum Wage, Statutory Sick Pay and holiday pay. It can issue civil penalties, bring tribunal proceedings and recover its enforcement costs. Employers should expect more enforcement activity and make sure their records and practices are in order.
Key payroll deadlines — spring and summer 2026
- 19 April 2026: deadline for the final Employer Payment Summary (EPS) for 2025/26. The final Full Payment Submission (FPS) was due on or before the last payday of the tax year.
- 31 May 2026: P60s must be issued to all employees for 2025/26.
- 6 July 2026: P11D deadline for reporting benefits in kind and expenses for 2025/26.
How Officium can help
These changes can be complex to work through. We can help you review and update your payroll processes, contracts and policies so you stay fully compliant — whether you need your systems updated for the new SSP rules, help understanding day-one family leave rights, or support preparing for Fair Work Agency scrutiny.
Get in touch on 01942 644864 or email hello@officiumbusinessservices.co.uk to discuss your needs.