April 2026 marks one of the most significant months for UK employment law in recent memory. Alongside the annual uplift to National Minimum Wage rates, a raft of reforms under the Employment Rights Act 2025 have now come into force. Here is a practical guide to help employers stay ahead of the changes.

From 1 April 2026, the National Living Wage for workers aged 21 and over rose to £12.71 per hour, a 4.1% increase from the previous rate. The 18–20-year-old rate saw a notable increase of 8.5%, reaching £10.85, reflecting the ongoing alignment of youth and adult pay rates. Both the 16–17-year-old rate and the apprentice rate increased by 6% to £8.00.

Around 2.7 million workers are expected to benefit from the uprated rates. Employers should remember that the correct rate depends on the first day of the pay reference period, not the pay date, so some workers may not see the new rate reflected in their pay until their next full pay cycle.

Statutory Sick Pay is now payable from the first day of sickness absence, abolishing the three waiting days that previously applied. The lower earnings limit has also been removed, extending SSP eligibility to lower-paid workers who were previously excluded. Employers may wish to take this opportunity to review their absence policies and ensure payroll systems are updated accordingly.

The qualifying service requirements for paternity leave and unpaid parental leave have been removed, making both entitlements available from the first day of employment. A new right to bereaved partner’s paternity leave has also been introduced, entitling a surviving partner to up to 52 weeks of unpaid leave following the death of a child’s mother or primary adopter.

The maximum protective award for failure to comply with collective redundancy consultation obligations has doubled from 90 to 180 days’ pay. This underscores the importance of having robust consultation processes in place, and employers who already follow best practice will be well positioned to manage this change.

Sexual harassment now qualifies as a protected disclosure under whistleblowing legislation. Workers who raise concerns about sexual harassment in the workplace will therefore benefit from the full range of whistleblowing protections against detriment and dismissal. Looking ahead, from October 2026 employers will also be held to a higher “all reasonable steps” standard for preventing sexual harassment in the workplace, replacing the current “reasonable steps” threshold.

The new Fair Work Agency was established on 7 April 2026, consolidating the functions of several existing enforcement bodies into a single organisation. The agency is intended to improve enforcement of employment rights, including minimum wage compliance, and employers can expect a more streamlined and consistent approach to enforcement.

Simplified trade union recognition procedures have taken effect, and employers with 250 or more employees are now encouraged to publish voluntary gender pay gap and menopause action plans (ahead of the imposed requirement from 2027). Employers must also keep records of annual leave and holiday pay for a minimum of six years.

April 2026 is a good moment to take stock of wider employment practices, not just payroll. Employers should review their pay structures against the new NMW and NLW rates, check apprentice records to ensure the correct rate band applies, and audit any deductions or salary sacrifice arrangements that could push effective hourly pay below the minimum. Furthermore absence, redundancy, and whistleblowing policies should all be updated to reflect the new ERA provisions. With further changes on the horizon later this year, including third-party harassment liability and extended tribunal time limits, staying proactive and making periodic changes to company policies and processes will ensure your business is well prepared for what lies ahead.