April 2026 Employment Law Changes: A Major Shift for Employers
Alan Kitto
April is always a key time for employment law updates, but 2026 marks a much more significant shift than usual.
Alongside the expected annual increases to pay rates and limits, we are now seeing the first wave of wider reforms that strengthen employee rights from day one and increase employer obligations — particularly around compliance and record-keeping.
Summarised below are the key changes and what employers should be doing now.
The ‘Usual’ April Changes (but still important)
As expected, April has brought annual updates to statutory rates and limits, including:
National Minimum Wage increases
Statutory Sick Pay (SSP) and family-related pay increases
Increase to the statutory redundancy pay cap
Increase to the maximum compensatory award for unfair dismissal
Day-one Rights: A Fundamental Shift
The following are now available from the first day of employment:
Paternity leave
Unpaid parental leave
Statutory Sick Pay Reform
Removal of the 3-day waiting period (SSP is now paid from the first day of absence)
Removal of the lower earnings limit (those earning less than the lover earnings limit (LEL) will receive 80% of their average earnings as opposed to the full SSP rate)
Holiday Records: A New Compliance Risk
Employers must now keep detailed holiday records for up to 6 years.
Detailed records need to include:
Holiday entitlement
Holiday taken
Holiday pay calculations (including overtime, commission, etc.)
Records for irregular hours workers
Carry over details (and the reason that holidays carried forward)
In simple terms: you must show not just what you paid, but why it was correct.
Increased Enforcement: The Fair Work Agency
A new Fair Work Agency has been introduced with powers to inspect and enforce compliance.
It has powers to:
Inspect employers (including without prior notice)
Enforce compliance with: National Minimum/Living Wage, Holiday Pay and Record Keeping, Statutory Sick Pay
Unlike traditional enforcement routes, the Fair Work Agency does not need an employee to raise a complaint and can instead investigate employers proactively.
Enforcement is becoming more proactive, not just reactive.
Employers need to ensure they are audit-ready
Other Notable Changes:
Sexual harassment complaints become protected disclosures for whistleblowing purposes.
A new right to Bereaved Partners Paternity Leave has also been introduced, ensuring that where a mother or primary adopter dies, the surviving partner is entitled to take up to 52 weeks of unpaid leave to care for the child.
Increased collective redundancy penalties (where companies fail to carry out proper consultations.
What should employers do now?
Update payroll systems
Review and update HR policies
Check holiday record-keeping
For more information on the above or any HR matter, please get in touch