What do you need to do to prepare for April’s employment law changes?

Unless you’ve been off exploring Antarctica or a remote jungle for the past two years, you will surely know that some major changes to employment law are on the horizon. 

Thanks to Labour’s Employment Rights Act, and the more routine statutory pay changes, this April is set to be a busy one for employers up and down the country.

In his own words the prime minister described the bill as “The biggest upgrade to workers’ rights in a generation.”

Great for workers, but you are the one that has to pay for it, unfortunately.

However, the changes brought about by the Employment Rights Act are staggered over a longer timeframe than just April. So for clarity, we will first zero in on what applies to April 2026, and then explore the actions that should be top of your to-do list today, so that you are ready for April.

The Employment Rights Act changes due for April 2026

For most businesses, the biggest change this April is that affecting statutory sick pay, where it becomes available on the first day of sickness (not the fourth). The need to be being paid at least the lower earnings limit is being removed too.

Then, in addition we have:

• The launch of the Fair Work Agency which will be the enforcer of a number of regulations, including the national minimum/living wage.
• The specific inclusion of sexual harassment within whistle-blowing rules – previously it was only implied.
• Paternity leave and unpaid parental leave becoming a day one right.
• A number of trade union rules being relaxed.

Statutory pay changes (not part of the Employment Rights Act) are as follows:

• Maternity, paternity, shared parental, adoption, parental bereavement and neonatal care leave are currently £187.18 per week. From 1st April, they rise to £194.32 per week.
• Sick pay rises from £118.75 to £123.25.
• The national living wage is rising 4.1% to £12.71 for those aged 21 and over. 18-20-year-olds will now get £10.85 and 16-17-year-olds will get £8.

Your HR compliance to-do list

It is helpful to plan for changes like these through four core areas.

Budget planning

Although for many SMEs budgets are already tight, these changes will have an impact – from meeting the new minimum wage bands to paying out more sick pay. Make sure you sit down and look at the numbers now in good time, so that you do not face nasty surprises post-April.

Policy reviews

Sick leave and pay policies, family policies and whistle-blowing policies are just three of the types of policy that you will have to amend to ensure they are aligned with the new laws. More changes may come in the following weeks, so it is a good time to sign up to our retained Advice Line service where, as well as unlimited telephone and email advice, you also have all your policies updated on your behalf to remain compliant (once all the changes are confirmed).

Ensuring compliance

It is one thing you as the business owner being aware of the upcoming changes, but just as important is making sure that the knowledge and procedural requirements trickle down your chain of command. Think now about the actions or systems you will need to implement to make it all happen correctly.

Absence management training

As well as compliance with the new sick pay regime it will be a good time to make sure you have a robust absence management process in place. This will help you stay in control of absences so that your staff know you take it seriously, even if it is easier for them to receive sick pay. If you need help formulating a policy or training managers, we can help.

By your side

2026 is going to be a challenging year for SME employers. Rest assured that we are by your side, with a local office never too far away, to help you when you need it; either with one-off services or our retained Advice Line.