LEGAL UPDATES / EMPLOYMENT LAW
To support your businesses with employment law changes in 2026, Bayley Hr Associates can take the following steps:
Keep your team informed: We will review the latest updates on employment rights and changes, such as those outlined in the Employment Rights Act 2025.
Prepare Policies: Update your business people policies to align with new employment rights, including statutory sick pay, family leave, and redundancy payments.
Educate Employees: Provide clear information to your employees about their new rights and responsibilities, ensuring they understand the changes.
Engage with Trade Unions: If applicable, engage with trade unions to understand their expectations and ensure compliance with new regulations.
Monitor Compliance: Regularly check compliance with new laws and update your personal systems to reflect these changes.
By taking these proactive steps, your businesses can effectively navigate the changes in employment law and maintain compliance.
New employment rights: Guidance for businesses and workers
From February 2026, upgraded employment rights will begin to take effect.
These changes will be introduced gradually between 2026 and 2027, giving employers time to prepare and ensuring workers have clear information about their new rights.
For employers, this is not simply legislative background noise. It alters dismissal risk, sickness absence cost exposure, redundancy liability and workforce planning. Businesses that prepare early will manage compliance and financial risk more effectively. Those who delay may find themselves exposed to avoidable tribunal claims.
April 2026 employment law changes
From 6 April 2026, several substantive reforms take effect. The Government has published an implementation timetable on GOV.UK, but the practical impact on employers goes beyond headline summaries and requires careful legal analysis.
Day-one rights to paternity and parental leave
Employees will gain entitlement to: Paternity leave from the first day of employment.
Unpaid parental leave from day one.
Contracts, policies and payroll systems must be updated accordingly.
Employers with high staff turnover or project-based workforces may feel the operational impact more immediately.
Statutory Sick Pay reform
Statutory Sick Pay will now: Be payable from the first day of sickness absence.
Apply with no lower earnings limit.
The removal of waiting days and the extension of eligibility will increase cost exposure, particularly in businesses with part-time or lower-paid staff.
Stronger whistleblowing protection
Workers who “blow the whistle” on sexual harassment will, from 6 April 2026, benefit from protection against adverse treatment and unfair dismissal.
Increased collective redundancy penalties
The maximum protective award for failing to comply with collective consultation obligations will increase from 90 to 180 days’ pay per affected employee.
For employers undertaking restructures and redundancy exercises, this materially increases financial risk. Any business proposing 20 or more redundancies within a 90-day period should take early legal advice. The cost of getting it wrong has effectively doubled.
Trade union recognition reforms
The statutory recognition process is being simplified, making it easier for unions to secure formal recognition. This will give trade unions greater freedom to organise, represent and negotiate on behalf of workers.
Fair Work Agency
From 7 April 2026, the new Fair Work Agency will bring together enforcement of key employment rights into one place. For most employers who already comply with the law, this will mean better access to guidance and support.
Key changes
The Fair Work Agency will consolidate enforcement of rights including National Minimum Wage, agency worker protections, and gangmaster licencing.
Over time, the Fair Work Agency will take on enforcement of additional rights such as holiday pay
The agency will have powers to investigate breaches, issues civil penalties and take action against labour exploitation.
A statutory advisory board with business, trade union and independent representation will guide the agency.
What this means for employers
The Fair Work Agency will not create new legal obligations. However:
Inspections and enforcement may operate differently.
Where you go for advice and support will change.
Employers who already follow good practice should not be affected.
Actions to take:
Before 7 April 2026:
Familiarise yourself with the Fair Work Agency’s enforcement policy statement (when published).
Review your compliance with existing employment rights (e.g. National Minimum Wage, holiday pay, agency worker regulations).
Understand how to contact the agency if you need guidance.
More information
For more information please see the Fair Work Agency factsheet
THE COST OF ABSENCE