Employment law changes in April 2026: what’s coming up?

From April 2026, as is the case each year, the Government will be increasing the level of employment-related statutory payments, as well as the compensation limits applicable to certain Employment Tribunal awards; roughly in line with inflation.

In addition, this year, a number of provisions in the Employment Rights Act 2025 (“ERA”) will be coming into force, one of the most notable of which are the changes to Statutory Sick Pay (“SSP”) entitlement; which will significantly increase the number of workers who will benefit from it.

We set out a summary of the increases to statutory payments, and changes being brought in by the ERA, below. You can also read in more detail about the ERA changes coming into force in April 2026 and beyond in our article here.

Increases in statutory employment-related payments

From 1 April 2026, National Minimum Wage will be increasing as follows:

• For workers aged over 21, from £12.21 to £12.71 per hour.
• For workers aged 18 to 20, from £10 to £10.85 per hour.
• For workers aged 16 to 17, from £7.55 to £8 per hour.
• For apprentices, from £7.55 to £8.00 per hour.

From 5 April 2026, pay for family-related leave (including maternity, paternity, shared parental, adoption and parental bereavement) will increase from £187.18 to £194.32 per week. In addition, the average gross weekly earnings required to qualify for statutory pay for family-related leave will increase from £125 or more per week to £129 or more per week.

Lastly, Statutory Sick Pay will be increasing from £118.75 to £123.25 per week. See also below how eligibility for SSP will be changing more broadly.

Increases in compensation limits for Employment Tribunal awards

These will be as follows, from 6 April 2026:

• The limit on a week’s pay (for calculating statutory redundancy payments and the basic award for unfair dismissal, amongst others) will be increasing from £719 to £751.
• The minimum basic award for unfair dismissals will be increasing from £8,763 to £9,157.
• The maximum compensatory award for unfair dismissal will be increasing from £118,223 to £123,543. Notably, this will be the last time that this statutory cap will be increased before it is abolished entirely, on 1 January 2027 (under the Government’s current ERA implementation timeline).

In addition, the “Vento Bands” for injury to feelings awards (applicable in discrimination claims), will also be increasing from 6 April 2026, as follows:

• The lower band (for less serious cases) will be increasing from a range of £1,200 to £12,100 to a range of £1,300 to £12,600.
• The middle band (for cases that do not merit an award in the upper band) will be increasing from a range of £12,100 to £36,400 to a range of £12,600 to £37,700.
• The upper band (for the most serious cases) will be increasing from a range of £36,400 to £60,700 to a range of £37,700 to £62,900.

Updated Employment Tribunal statistics

The Ministry of Justice has also recently published its quarterly Employment Tribunal statistics for October to December 2025; which show that, in the past year, claims have increased by 54%, and the Tribunal’s open case load has increased by 49%.

It remains to be seen how these figures will be impacted by numerous ERA changes coming into force over the course of the next couple of years; but it is expected that the new rights of action that these changes will introduce, are likely to increase the pressure on an already over-burdened Employment Tribunal system.

Employment law changes being brought in by the ERA in April 2026

Changes to the eligibility criteria for SSP

From 6 April 2026, SSP will be:

• available to all eligible employees regardless of their earnings (the requirement that individuals earn at or above the “lower earnings limit” to qualify for SSP will be removed),
• payable from the first day of sickness absence (the 3 day “waiting period” before SSP becomes payable will be removed), and
• paid at 80% of an employee or worker’s “average weekly earnings”, or the statutory rate of £123.25, whichever is lower.

Changes to the eligibility criteria for paternity and parental leave

From 6 April 2026, paternity and parental leave will become “day one” rights (the requirement for staff to have 26 weeks’ or one year’s service respectively, before they are eligible to take these types of leave will be removed).

Bear in mind too that the Government is currently reviewing the statutory parental leave system more generally, and that further changes may be made in the next year or so.

Introduction of Statutory Paternity Bereavement Leave

From 6 April 2026, a new statutory leave entitlement will be introduced, which will enable partners to take up to 52 weeks of leave if the mother of their child dies within the first year of the child’s life. This will be a “day one” right.

Introduction of menopause and gender pay equality action plans on a voluntary basis

The ERA introduces a new requirement for employers with 250 or more employees to publish equality action plans highlighting how they will (a) reduce their gender pay gap, and (b) support female staff through the menopause. These plans will be publishable on a voluntary basis from April 2026, and will become compulsory in April 2027.

The Government published initial guidance for employers in March 2026 (which can be found here), and will be publishing more detailed guidance in April 2026.

Sexual harassment confirmed to be a qualifying disclosure for whistleblowing purposes

From 6 April 2026, disclosures of sexual harassment will automatically count as a “qualifying disclosure” for whistleblowing purposes (provided it also meets the other statutory tests required for a protected disclosure).

This is more of a clarification of the legal position than a significant change in the law; most disclosures about sexual harassment would already potentially qualify under the existing framework.

Increase to the maximum protective award for failure to collectively consult

From 6 April 2026, the maximum “protective award” payable in the event that an employer fails to comply with statutory collective consultation requirements in a large-scale redundancy exercise, will double – from 90 days’ pay to 180 days’ pay.

Changes to statutory trade union recognition procedures

From 6 April 2026, Trade Unions will likely no longer be required to show that a majority of the proposed bargaining unit supports recognition, and – where a ballot is held – the requirement that at least 40% of all workers in the bargaining unit vote in favour of recognition will also be removed. This will make it much easier for Unions to gain statutory recognition for collective bargaining purposes.

Bear in mind too that there will be further changes relating to Trade Unions later this year and during 2027 – see our article on this here.

Establishment of the Fair Work Agency

On 7 April 2026, a new statutory enforcement body – the Fair Work Agency (“FWA”) – will be established (though it is not yet clear when it will become fully operational).

The FWA will be responsible for enforcement on a number of employment issues, including National Minimum Wage, SSP, statutory holiday pay, labour exploitation and modern slavery, the Employment Tribunal penalty scheme, and employment agency rules.

It will have extensive powers to enforce statutory payments, impose penalties and recover enforcement costs. It will also have the power to bring Employment Tribunal claims on behalf of workers.

Changes to compliance rules for Umbrella Companies

From 6 April 2026, there will be changes to the rules for PAYE / NICs liability for Umbrella Companies and their clients. In summary, the Umbrella Company and their client will both be jointly and severally liable for PAYE / NICs; unless there is an Agency involved, in which case the Umbrella Company and Agency will be jointly and severally liable.

What do these changes mean for organisations?

In light of the changes coming into force outlined above, organisations should ensure that they have reviewed and updated applicable contracts, policies, procedures and agreements, to ensure that they comply with statutory requirements, are fit for purpose, and mirror best practice. Consideration should also be given to whether updated training is required for managers.

Though April 2026 looks to be a particularly busy period for organisations from an employment law perspective, the pace of change is set to continue throughout the year and into 2027; with further significant changes on the horizon (see our article on this here). Employers will need to make sure that they are prepared to navigate these changes well in advance, to ensure a smooth transition.

If your organisation needs further advice or training on any of the changes coming in in April 2026 (or beyond), please get in touch, and our team of experienced employment lawyers would be happy to help.

The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. Please do contact the Bates Wells team if you require further advice.