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Employment Law Updates

UK Employment Law Updates in 2026

Stay ahead with the latest employment law updates. From HR policies to workplace rights and employee protections, laws are continuously being updated and changed to suit the evolving landscape of the modern workplace.

With the support of our employment law experts, get to know the updates that will impact your business in 2026.

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Employment Rights Act 2025 is here!

Introduced in October 2024, the major shake-up to employment rights in the UK has now been passed through parliament. With key changes to be implemented over the next two years, including:

Day one rights for employees such as SSP and family leave rights
A new employment law enforcement agency
Major changes to the rights of workers on zero-hours contracts
Flexible working will become a "default" for workers

Stay up to date

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Statutory Payments and Compensation Limits for 2026

On 20th March the government confirmed the remaining statutory payments and tribnal compensation limits to be implemented from April 6th 2026. This includes:

Maximum weeks' pay for redundancy pay purposes - £751 (from £719)
Maximum unfair dismissal compensatory award - £123,543 (from £118,223)
Statutory guarantee pay - £41 (from £39)

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From 6 April annual leave records to be kept for six years

An unexpected update to the Employment Rights Act includes a new enforcement date.

It has been announced that from the 6th April 2026 businesses will need to begin storing annual leave records for six years. The focus of which will be on records created from this date onwards, with the Fair Work Agency responsible for overseeing that these changes are implemented.

To comply it's important to ensure your business has the facilities to safely and securely store HR records.

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Minimum wage rates from April 2026

From April 1st 2026, the following rates will apply:

National Living Wage (aged 21+): £12.71 per hour (an increase of 4.1%)
National Minimum Wage (aged 18-20): £10.85 per hour (an increase of 8.5%
National Minimum Wage (aged 16-17): £8 per hour (an increase of 6%)
Apprentice rate: £8 per hour (an increase of 6%)

With the support of a CIPP qualified payroll team, you don't have to worry about payroll headaches when new wage standards come into effect.

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Paternity and parental leave changes

From 6th April 2026, paternity and parental leave changes will come into effect. However, the UK government have announced that there will be a transitional period. This will reduce the notice period for paternity leave to 28 days to allow those who will become newly eligible to access the entitlement from the 6th April.

It's important to note that employees will be able to give notice from 18th February 2026 in anticipation of becoming newly eligible to take paternity/parental leave from 6th April 2026.

For those who are already eligible, this notice period will not change.

Find out more

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Changes to industrial action rules from 18 February 2026

From 18 February 2026, employers will see significant changes to the rules around industrial action and trade union activity.

Employees dismissed for taking part in industrial action will gain increased protection. Any dismissal linked to industrial action will be classed as automatically unfair, removing the current 12-week limit for bringing an unfair dismissal claim.

Trade union rules will also change on the same date, including removing picket supervisors, reducing the notice required given by unions of industrial action, and simplifying ballot notices.

Find out more

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Immigration updates for workers from overseas

Changes to immigration laws will affect employers who wish to hire employees from abroad.

From December 16th 2025 the ISC is increasing by 32%. This means higher costs for employers sponsoring workers under the Skilled Worker or the Senior or Specialist Worker route.
Starting January 2026, English language requirements will also change, increasing the requirement to a level B2, equivalent to A-Level.

It's important to stay aware of changes to employment law and immigration requirements in the UK. As an employer you have a responsibility to ensure any job applicants you hire have a right to work in the UK.

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Get the advice you need

Stay compliant with employment laws in the UK with the support of HR experts.

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How can you stay ahead?

Get advice from HR experts

With the support of employment law experts on your side, you can get the latest and most accurate information you need to be HR compliant.

Align HR processes with employment laws

By leveraging technology, you can enhance and streamline your processes. Helping you to reduce the risks of compliance issues and out of date HR documentation.

Update policy documents and contracts

Your HR policies, documents and employment contracts are essential pieces of information helping you navigate and ensure compliance with employment laws.

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Can't keep up with ever-evolving employment laws? Stay ahead of the curve with 24/7 expert support from our HR advice line.

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Download our 2026 Survival Guide for Small Businesses

Guides

Wednesday, April 1, 2026

A Small Business Survival Guide 2026

The Employment Rights Act marks a turning point in employment legislation. Major changes include sick pay rules, and expanded parental leave and enforcement.

Now is the time for businesses to act in order to avoid disruption to HR operations and potential penalties from the new Fair Work Agency. Download our Small Business Survival Guide to prepare your business for the Employment Rights Act today.

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