Those of you that have attended our recent free Employment Law Updates will know that significant reforms to employment rights take effect in April 2026. This blog sets out some of the changes that are due to come into effect and what employers should do now so that implementation is smooth and compliant.
Annual leave and holiday pay records – from 6 April 2026
The government has recently announced that this new obligation will come into effect from 6 April 2026. The obligation is on employers to keep certain records relating to compliance with annual leave and pay for annual leave. Employers will need to keep adequate records to demonstrate compliance with:
- Entitlement to annual leave.
- Entitlement to additional annual leave.
- Entitlement to annual leave of irregular hours and part-year workers.
- Entitlement to pay for annual leave.
- The requirement to make a payment in lieu of holiday outstanding on termination of employment, including any holiday carried forward from a previous leave year.
- The requirement to make a payment to irregular hours workers and part-year workers in lieu of holiday outstanding on termination of employment.
These records “may be created, maintained and kept in such manner and format as the employer reasonably thinks fit”. They must be retained for six years from the date on which they were made. Failure to do so will constitute an offence, punishable by a fine.
Statutory Sick Pay (SSP) – from 6 April 2026
SSP will become payable from day 1 of sickness, removing the current three-day waiting period. The lower earnings limit will also be removed so that all eligible employees, regardless of earnings, will be entitled to the lesser of 80% of normal weekly earnings and SSP.
Employers should review and update sickness absence policies and check their contracts where they refer to SSP only from the fourth day of sickness and the relationship between the first three days and company sick pay. Payroll systems and integrations must be updated to calculate entitlement from day 1 and to apply the “lesser of 80% of normal weekly earnings and SSP” rule. Managers should also be briefed on evidence requirements and the impact on short-term absence processes and organisations may wish to consider if their trigger points for absence are suitable.
Redundancies – protective award uplift from 6 April 2026
The maximum protective award for failure to collectively consult in redundancy situations will double from 90 days to 180 days’ gross pay per affected employee.
Employers should review their redundancy policies if in place. They should also ensure headcount threshold assessments are robust and that election and consultation processes are documented. It is also advisable to train HR and line managers on triggers, timelines and the necessary documentation.
Family rights – day 1 entitlement from 6 April 2026
Parental leave and paternity leave will become day 1 rights meaning eligibility will no longer depend on length of service.
Employers should amend family leave policies, employee handbooks and internal forms to remove service thresholds for parental and paternity leave.
Whistleblowing – sexual harassment reports from 6 April 2026
Reports of sexual harassment will be expressly recognised as an example of a protected disclosure for whistleblowing protection purposes.
Employers should ensure whistleblowing policies are updated accordingly.
Bereaved partner’s paternity leave – from 6 April 2026
Where the mother or the partner of an employee’s child dies within the first year of the child’s life or adoption, employees will have a new statutory right to unpaid bereaved partner’s paternity leave from day 1 of employment.
An eligible employee is entitled to a single period of BPPL. It can only start after the bereavement and must start and end within the “paternity leave eligibility period”, which is a period of 52 weeks starting with the day after the date of birth or adoption placement. Within those parameters, the employee can choose the start and end dates and the length of leave.
Equality Action Plans – 6 April 2026
This provision requires companies with 250 or more employees to create and publish equality action plans showing what they are doing to improve gender equality.
Gender equality in this context means making sure men and women are treated fairly at work. This includes taking steps to reduce the gender pay gap and supporting employees who are going through menopause.
From April 2026 this will be voluntary and will become mandatory in Spring 2027.
Statutory trade union recognition – 6 April 2026
The statutory procedure for the recognition and derecognition of trade unions will be simplified by removing the current requirement for trade unions to have the support of at least 40% of the workforce in the proposed bargaining unit. Instead, the requirement will be for a simple majority.
Fair Work Agency (FWA) – established 7 April 2026
The new public authority, the FWA, will have the power to require individuals to attend meetings, answer questions and provide documents in order to provide information necessary for any enforcement purpose.
It will also have the power to bring Employment Tribunal claims on behalf of workers, offer legal advice and representation in employment cases, and pursue employers for National Minimum Wage, holiday pay and sick pay, with financial penalties for non-compliance.
In light of this, employers should ensure records for pay, working time, holiday and sickness are accurate, accessible and retained in line with statutory requirements. If you require any assistance, please contact [email protected]
