Changes to Statutory Rates

Family Leave (maternity, paternity, shared parental, adoption, parental bereavement and neonatal care leave pay) will increase from 6 April 2026, from £187.18 per week to £194.32.

Statutory Sick Pay will increase from £118.75 to £123.25 from 6 April 2026.

National Minimum Wage is also increasing as per our write-up following the Autumn Budget:

• The National Living Wage (all workers aged 21+) will rise to £12.71 (+4.1 pc from £12.21)
• The minimum wage (workers aged 18-20) will rise to £10.85 (+8.5 pc from £10)
• The minimum wage (workers aged 16-17) will rise to £8.00 (+6 pc from £7.55)

Revised redundancy and basic cap awards are expected. 

Expanded worker rights & protections (Employment Rights Act 2025)

February 2026

From February 2026, increased dismissal protection for industrial action will be in force, the first of the new Employment Rights Act 2025 rights, which gives automatic protection for dismissal for taking part in industrial action, removing the current 12-week limit. Other trade union activity changes also commence in February 2026.

April 2026

From April 2026 paternity leave and ordinary parental leave become day one rights, and the current restriction on taking paternity leave after shared parental leave is also removed.

Sick pay (SSP) will be paid from the first day of illness, and the lower earnings limit is removed.

The collective redundancy protective award for failure to consult doubles from 90 days pay to 180.

Sexual harassment becomes a qualiying whistleblowing law protection.

Action plans around menopause and gender pay gaps will be voluntary from April 2026. They will become mandatory sometime in 2027.

The Fair Work Agency will be established.

October 2026

The rules in relation to ‘fire and rehire’ change.

Rules in relation to harassment change, including employers becoming liable for harassment from third parties unless they have taken all reasonable steps to prevent it. Employers will also have to take ‘all’ reasonable steps to prevent sexual harassment, which is a step above current position of ‘reasonable steps’.

The new tipping law is expected to come into force, whereby employers will be required to consult with workers and create a tipping policy which will be updated every three years.

Time limits for bringing a claim to an employment tribunal increases from three to six months.

Further trade union changes occur including new duties, and increased protection for taking part in industrial action.

New measures will be in place for public sector outsourcing, and a new negotiating body for adult social care.

December 2026

A new mandatory charter for seafarers will be introduced (for clarity this only applies to seafarers and shipping industry not all employees).

Pension Schemes Bill

This bill is still progressing through parliament and is at the committee stage in the House of Lords. The intention is to support the consolidation of pension assets by encouraging larger pension investment vehicles or megafunds.

Workers employed by Umbrella Companies

Recruitment agencies will become responsible for operating PAYE when workers are engaged through relevant umbrella companies, in a shift of responsibility from the company to the agency.

Mandatory Identity Verification

ID checks have been gradually rolled out across 2025, whereby existing company directors must verify their identity within the 12-month transition period that ends on 17 November 2026.

From Spring 2026 (exact date still undefined) any individuals who file documents at Companies House must also complete identity verification. 

Limited partnerships and other groups will also be affected, with timelines still being determined.