UK Employment Changes: April 2026
As we head into April 2026, several significant employment law changes are set to come into effect across the UK. These updates will impact businesses of all sizes and will require careful consideration and preparation, particularly in relation to payroll, employee entitlements, and compliance.
At Cheylesmore Accountants, we are committed to helping our clients navigate these changes smoothly and confidently.
Statutory Sick Pay (SSP)
One of the most significant changes coming into effect in April 2026 relates to Statutory Sick Pay (SSP).
Under the new rules:
SSP will be payable from day one of sickness
The Lower Earnings Limit (LEL) will be removed
A new SSP rate of £123.25 per week will apply
For employees earning less than this amount, SSP will be paid at the lower of 80% of their average weekly earnings
Employees who were already off sick before 6 April 2026 will receive the new flat rate during a defined protection period, which will remain in place until they return to work.
What this means for employers:
Payroll updates – Systems must be updated to apply SSP from day one and calculate SSP correctly for lower earners
Policy reviews – Employment contracts and sickness absence policies must reflect the new rules
Increased costs – Employers may face higher SSP costs
Absence management – Accurate record‑keeping will be essential
At Cheylesmore Accountants, we can assist with payroll updates, cost management, and any questions you may have about these changes.
Day-One Rights to Family Leave
From April 2026, employees will become eligible for Paternity Leave and Unpaid Parental Leavefrom their first day of employment. This removes the previous qualifying service periods and provides immediate eligibility for these family‑related leave entitlements.
As a result:
Leave‑tracking systems must be updated to reflect day‑one eligibility
Employers must ensure requests are processed correctly
HR procedures and policies may need to be revised
We provide ongoing guidance to help businesses adapt their systems and policies in line with these changes.
Trade Union Recognition
New rules relating to trade union recognition will also come into effect in April 2026. These changes introduce a simplified recognition process and lower thresholds for union support in certain circumstances.
This may result in:
Increased union activity
Greater formalised employee representation
Additional requirements around communication and documentation
While these changes do not directly affect payroll, they may influence workforce planning and cost structures. At Cheylesmore Accountants, our personalised approach ensures we can support you with advice tailored to your specific business needs.
Collective Redundancy Protections
Another important update involves strengthened protections for employees during collective redundancies.
Previously, collective consultation obligations applied when an employer proposed 20 or more redundancies within a 90‑day period. Under the new rules, these obligations will be expanded and strengthened to prevent employers from avoiding consultation by spreading redundancies across different locations or time periods.
For businesses, this may mean:
Stricter consultation requirements
Longer planning timelines
Increased legal risk for non‑compliance
Higher protective awards and penalties where obligations are breached
Redundancies are a sensitive and complex process. Cheylesmore Accountants can support you with planning, cost considerations, and ensuring compliance throughout the process.
Fair Work Agency
A new Fair Work Agency will be introduced to simplify and strengthen the enforcement of employment law. This body will consolidate existing enforcement powers and take a more proactive role in ensuring employer compliance.
The agency will have the authority to:
Investigate employers
Enforce rules around pay, including minimum wage and SSP
Issue penalties
Require repayment of underpaid wages
As a result, businesses may face increased scrutiny and higher compliance risks. Accurate record‑keeping—particularly in relation to pay, sickness absence, and employee entitlements—will be more important than ever.
Our team at Cheylesmore Accountants can assist in reviewing payroll and employment processes to ensure full compliance.
Overview
The employment law changes taking effect in April 2026 represent a significant shift for businesses across the UK. Employers will need to take a proactive approach, with increased administrative responsibilities and a strong focus on compliance.
Cheylesmore Accountants are here to support you through these changes, providing accurate payroll services and personalised advice tailored to your business. We help our clients remain compliant with both new and existing legislation, allowing you to adapt with confidence.
