Employment Law Update 2026
- Sarah-Jayne Smith
- Feb 15
- 2 min read
Updated: Feb 16
📌 Bottom Line at the Top!
2026 is a transformational year for UK employment law. Employers must prepare early — it’s not just wage increases, but expanded rights, new protections, and a shifted compliance landscape. It's biggest employment law change in years, this Act received Royal Assent in December 2025 which means this is being implemented in stages across 2026 and 2027. As a business owner focus on the bit in Green.
Grigg HR can help with this.
Key 2026 milestones include:
👶 From 6 April 2026 – Workplace Rights & Protections
✔️ Expanded leave rights
Day-one paternity leave — employees can take paternity leave from the first day of employment.
Day-one unpaid parental leave — no need to reach 12 months’ service first.
Broader parental protections and bereavement leave improvements following the Paternity Leave (Bereavement) Act 2024.
✔️ Enhanced statutory pay
Statutory Sick Pay (SSP) reforms — removed lower earnings limit and waiting days, meaning many more workers are entitled to receive SSP from the first day of illness.
Statutory maternity/adoption pay and other statutory pay rates are increasing.
✔️ Fair Work Agency established
A new enforcement body to oversee and enforce employment rights more proactively — replacing the previous patchwork of bodies.
📈 Other 2026 Changes
💷 Pay & wages changes (April 2026)
National Living Wage & Minimum Wage increases (e.g. age 21+ wage rises to £12.71/hour).
Statutory pay rates for redundancy, maternity, and tribunal awards increase.
📑 Revised employer responsibilities
Employers must update contracts, handbooks, policies, and payroll systems to reflect new statutory rights, pay rates, and benefits.
🔜 Later 2026 / Early 2027 Milestones
Some provisions begin later:
October 2026: new duties on employers to prevent sexual harassment at work and third-party harassment; extended protections related to trade union participation.
Early 2027:
Unfair dismissal qualifying period reduced to 6 months, replacing the two-year rule.
Fire and rehire protections introduced.
Uncapping compensatory awards for unfair dismissal is expected.
📌 Summary: What’s Most Important in 2026
Area | Key Change |
Parental & family leave | Day-one rights for paternity & parental leave |
Statutory pay | Higher rates + SSP from day one |
Union & collective rights | Easier recognition; more ballot options |
Enforcement | New Fair Work Agency |
Wages | up across age bands |
Planning ahead | Major employer updates still coming in late 2026 & 2027 |
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