Employment Law Updates

There are significant UK employment law reforms taking effect on 6 April 2026. Here is a summary of the key changes:

National Living Wage Increase Increases from £12.21 to £12.71 per hour (+50p / +4.1%).

Statutory Sick Pay (SSP) Will increase from £118.75 → £123.25 per week or 80% of Average Weekly Earnings (AWE) whatever is lower. Removal of lower earnings limit and SSP payable from day one of sick. We have undertaken workshops with our managers on the management of sickness absence and will continue to monitor monthly to ensure we provide the service you expect.

Statutory Family-Related Pay

The weekly rate increases to £194.32 (or 80% of AWE, whichever is lower) for Maternity, Paternity, Shared parental, Adoption and Bereavement pay.

Paternity leave and unpaid parental leave become a day-one right.

Collective Redundancy Consultations Failure to properly consult may result in protective awards of up to 180 days’ pay (previously 90 days).

New Government Enforcement Body — 7 April 2026 A new single enforcement body will be responsible for enforcing minimum wage, holiday pay, statutory sick pay, and labour rights compliance. We have recently undertaken a full business review of our Right To Work processes and will continue our business audits to ensure full compliance.

In addition — TUPE

The government has launched a ‘call for evidence’ to inform policy changes to TUPE. The Plan to Make Work Pay, incorporating the Employment Rights Act 2025, stated that TUPE regulations would be reinforced as part of the process of strengthening workers’ rights.

The Employment Rights Act does not include direct changes to TUPE. But many of the measures to beef-up workers’ rights will affect TUPE regulations.

For example, the six-month qualifying period for protection from unfair dismissal will increase the potential liability for transferees (the company receiving employees), particularly where there are underlying disciplinary and grievance processes.

Additionally, transferees may have used dismissal and re-engagement to implement a change in terms following a TUPE transfer. But under the fire and rehire provisions in the Act — being introduced in January 2027 — this kind of action will not be legally possible.

The Act also seeks to avoid a “two-tier workforce” where ex-public sector employees and private sector employees are working on the same contract but are employed on different terms and conditions. This will come into force in October 2026.