SafeHR
SafeHR
April is traditionally when many UK employment law changes take effect, and 2026 is no exception. From increases in statutory pay rates to expanded employee rights, several updates will affect how businesses manage payroll & expenses, HR policies, and day-to-day employee relations.
For small businesses with 5–50 employees, even small compliance gaps can lead to unexpected costs or legal risks. The good news is that with the right preparation, these changes are manageable.
In this guide, we explain the key employment law updates expected in April 2026, what they mean for employers in practice, and how small businesses can stay compliant without unnecessary stress.
For small businesses, these changes can have a real operational impact. Payroll costs may increase, HR policies may need updating, and managers may need guidance on new responsibilities.
Understanding the changes in advance allows employers to plan ahead, update processes, and avoid last-minute compliance issues.
The most immediate changes affect statutory payments, including the National Minimum and Living Wage, Statutory Sick Pay (SSP), family leave pay, and redundancy payments.
Here’s a breakdown:
These increases may significantly affect payroll costs, particularly for businesses employing younger workers or apprentices.
Statutory Sick Pay is expected to increase to £123.25 per week (up from £118.75) or 80% of normal weekly earnings, whichever is lower.
Proposed reforms are also expected to make SSP payable from the first day of sickness absence, rather than after the traditional waiting period.
In addition, the lower earnings limit may be removed, allowing more workers to qualify for SSP.
Statutory pay rates for the following types of leave will increase to £194.32 per week (up from £187.18):
The cap on statutory redundancy pay is also expected to increase, although final figures have not yet been confirmed.
For a small business with 10 employees, the rise in the National Minimum Wage and SSP could increase annual payroll costs by several thousand pounds.
Planning ahead can help avoid cash-flow surprises when the changes take effect.
Alongside pay updates, several changes will expand employee rights and increase employer responsibilities.
Employees will gain day-one eligibility for paternity leave, meaning they will no longer need a minimum period of service before taking leave (although pay eligibility rules may still apply).
Similarly, unpaid parental leave will become a day-one right, allowing employees to access this entitlement immediately after starting a role.
As part of broader reforms, SSP rules are expected to change so that eligible employees can receive sick pay from the first day of absence.
Employers may need to update payroll systems and internal absence policies to reflect this change.
Collective redundancy rules will become stricter.
Employers proposing 20 or more redundancies within a 90-day period must carry out a formal consultation with recognised trade unions or employee representatives.
Under the new rules, the maximum protective award for failing to consult properly could double from 90 days’ pay to 180 days’ pay per affected employee, significantly increasing the financial risk of non-compliance.
Employees who report sexual harassment in the workplace will now receive explicit protection under whistleblowing legislation.
This change strengthens protections for workers who raise concerns about misconduct or unsafe working environments.
A new government enforcement body, the Fair Work Agency, will gradually take on responsibility for enforcing key employment rights.
This organisation is expected to oversee areas such as:
The full scope of its powers is expected to develop over time, but it signals a stronger focus on enforcement across UK workplaces.
To prepare for these changes, employers should begin reviewing their processes now.
Key steps include:
Taking these steps early can help reduce disruption when the changes come into force.
Here are a few examples of how some of these changes may affect businesses in practice.
Emma, a part-time employee earning below the old SSP threshold, now qualifies from day one. Payroll needs updating to ensure her first day of sick leave is correctly paid at £123.25/week.
A business planning 20 redundancies without proper consultation could face penalties of up to 180 days’ pay per employee, a financial and reputational risk.
A new hire requesting parental leave immediately after joining now has the right to unpaid leave from day one. Employers must update processes to track and approve this correctly.
Keeping up with employment law changes can be challenging for small businesses without dedicated HR teams. Ensuring policies, contracts, and payroll processes stay compliant takes time and expertise.
SafeHR helps simplify this process by supporting employers with:
With the right systems and HR support for small businesses in place, employers can implement legal changes smoothly and reduce the risk of costly mistakes.
April 2026 brings several important employment law changes that will affect payroll, HR policies, and employee rights.
For small businesses, staying compliant doesn’t have to be complicated, but it does require preparation. Reviewing pay rates, updating policies, and ensuring managers understand new obligations will help avoid costly mistakes.
With the right support and systems in place, these changes can be managed smoothly, allowing you to focus on running and growing your business.
Our friendly, flexible and cost-effective HR Support Service is here to help with all of your HR problems. Get in touch to learn how.
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