Employment Rights Act: Preparing for change: April changes coming into force

2 April 2026 4 min read

By Rachel Chapman

At a glance

From 1 April 2026, National Minimum Wage rates increase across all age bands, with the main rate for workers aged 21 and over rising to GBP12.71 per hour.
Key provisions of the Employment Rights Act 2025 come into force on 6 April 2026, significantly expanding employee rights and increasing employer obligations.
The maximum collective redundancy protective award doubles from 90 to 180 days’ pay for dismissals taking place on or after 6 April 2026.
Statutory Sick Pay (SSP) eligibility is widened through the removal of the Lower Earnings Limit and waiting days, alongside increases to statutory payment rates and limits.
A new Fair Work Agency is established from 7 April 2026, creating a single enforcement body for employment rights, including minimum wage, holiday pay and SSP.

April traditionally marks the implementation of notable updates in employment law, and this year is no exception. Key provisions of the Employment Rights Act 2025 come into force this month, accompanied by annual revisions to statutory rates and limits.

1 April 2026

From 1 April 2026, the National Minimum Wage will increase, with the rate for workers aged 21+ rising to GBP12.71 per hour. The 18–20 age group rate rises to GBP10.85, and the 16–17 and apprentice rates increase to GBP8.00. The accommodation offset rises to GBP11.10.

6 April 2026

Employment Rights Act provisions in force:

Collective redundancy protective award – doubling the maximum protective award from 90 days’ pay to 180 days’ pay per affected employee. This change will apply to dismissals on or after 6 April.
‘Day 1’ entitlement to paternity leave and unpaid parental leave.
Whistleblowing – explicit protection for workers who ‘blow the whistle’ on sexual harassment.
SSP – the Lower Earnings Limit and waiting period are removed.
Voluntary action plans on gender equality and supporting employees through the menopause.
Simplifying the trade union recognition process, in respect of applications received by the CAC on or after 6 April 2026:
- Simple majority: Recognition is granted if a simple majority of those who vote in a ballot support the union, removing the previous requirement that at least 40% of the entire bargaining unit must vote in favour.
- Easier application process: Unions no longer need to demonstrate that a majority of workers in a proposed bargaining unit are likely to support recognition to initiate the process.
- Anti-blocking measure: A non-independent union can no longer be used to block the application of an independent union.
- Potential for lower membership threshold: The requirement for a union to show it has at least 10% membership in the bargaining unit remains, but the government can now lower this to as low as 2%.
Obligation on employer to keep records that are ‘adequate to show’ compliance with obligations in relation to annual leave.

Increases to statutory rates and limits:

Statutory Maternity Pay, Maternity Allowance, Adoption Pay, and Shared Parental Pay increase to GBP194.32 per week (or 90% of earnings if lower).
SSP increases to GBP123.25 per week (or 80% of pay if lower).
The limit on a week’s pay (for statutory redundancy pay and the unfair dismissal basic award) increases to GBP751.
The statutory cap on unfair dismissal compensatory award rises to GBP123,534 ahead of being removed in January 2027.

Other provisions in force:

Bereaved Partners’ Paternity Leave will enable bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life.

7 April 2026

The Fair Work Agency (FWA) will be established, with Matthew Taylor CBE appointed as its first chair. The FWA is a new UK enforcement body overseeing employment rights, merging functions from HMRC, the GLAA, and the Employment Agency Standards Inspectorate. It will target breaches in minimum wage and worker exploitation, providing a single point of enforcement to boost compliance. Importantly, the FWA will also take on enforcement of holiday pay and statutory sick pay, although this is not expected until later in the year.

Action for employers

Update policies on parental and paternity leave and whistleblowing.
Ensure payroll is ready to comply with changes to SSP.
Put in place mechanisms to ensure adequate records are kept of calculation of entitlement to annual leave, calculation of holiday pay and when leave is taken.