The key 2026 employment law changes you need to know in summary:
Big UK employment law changes in 2026 are on the way; including sick pay reforms, day-one parental rights, and tougher anti-harassment duties. HR and payroll teams need to prep now for the Employment Rights Bill, Fair Work Agency, and sweeping updates to leave, pay and compliance rules. Here, we break down all the key changes for the next 12 months and beyond.
If you thought 2024 and 2025 were busy years for HR compliance, strap in – because 2026 is shaping up to be a real corker.
Between sweeping reforms under the new Employment Rights Bill and long-awaited updates to sick pay, family leave and flexible working, there’s a tidal wave of legislation coming HR and
payroll teams’ way. If you’re not watching the horizon now, you might find yourself scrambling to stay afloat when the wave hits.
So, grab a pumpkin-spiced latte (or perhaps something stronger) and let’s look at what’s changing, when, and how HR and payroll teams can avoid getting buried under it all.
April 2026: when the big stuff hits
April’s always the traditional time payroll teams wince at what’s coming their way: new tax rates, updated pay thresholds, and the usual scramble to keep spreadsheets behaving… but 2026 will take that to a whole new level, with reforms that touch almost every corner of HR and payroll operations. In fact, those trusty spreadsheets you might have been clinging to for years might finally be sent to the great virtual recycling bin in the sky….
Here’s what’s coming first out of the legislative gate in 2026.
-
Statutory Sick Pay (SSP) finally gets a makeover
From April 2026, the long-criticised SSP system gets dragged into the 21st century. There’ll be two major changes to prepare for:
- The Lower Earnings Limit will be scrapped, so more workers qualify.
- The three-day waiting period is gone – SSP starts on day one of absence.
In short: more people get paid when they’re sick, and you’ll start paying them sooner.
The implications for payroll teams will include revised SSP calculations, triggers and employer costings will all need updating.
If your payroll software isn’t ready, it’s time to start asking questions (hint: good HR systems with native, HMRC-recognised payroll software should make this painless).
-
Day-one rights for family and parental leave
Under the new Employment Rights Bill, new parents won’t need to hit a service threshold before accessing paternity or unpaid parental leave. That means HR policies, handbooks and onboarding templates will all need an overhaul.
Pro tip: While you’re updating those, check your shared parental leave processes, too. Consistency is everything when line managers are approving requests; because if everyone’s doing their own thing, you’re just one “But my colleague got it approved!” away from a full-blown HR headache…
-
The Fair Work Agency makes its debut
2026 will also see the launch of a brand-new enforcement body: the Fair Work Agency. Think of it as the ultimate compliance police – combining enforcement for minimum wage, holiday pay, sick pay and worker exploitation under one roof. Basically, the days of quietly “sorting it later” are over. Expect more inspections, more data requests, and fewer excuses for non-compliance.
This one’s definitely worth looking at in more detail, and you can do that by clicking onto the UK Government’s own fact sheet here.
-
Collective bargaining and union changes
For employers with unionised staff (or those who might soon have them), 2026 will bring tighter rules around union recognition, electronic ballots, and redundancy consultations. Even non-unionised employers should pay attention – these updates strengthen employee voice and collective representation across the board. You can read more about this in detail here.
It wouldn’t be April without a bump in the National Minimum Wage, Statutory Maternity & Paternity Pay, and Adoption Pay rates. 2026’s updates will likely be more substantial than usual, thanks to the usual inflationary adjustments and political promises.
For payroll teams, make sure your HR and payroll systems apply the new rates automatically, rather than doing it all manually in April – that’s the quickest way to guarantee errors (and a few unwanted late nights).
Later in 2026: more reforms on the horizon
But wait…. There’s more! Just when you think you’re on top 2026’s employment law changes, the latter half of 2026 is expected to bring another big wave of legislative fun. Some of the more notable changes include:
-
“Fire and rehire” clampdown
The controversial practice of firing staff and rehiring them on new terms is finally facing a clampdown. Employers will need to show they’ve genuinely tried other options – or risk finding themselves on the wrong side of the law. The measure sits within the new Employment Rights Bill. But, there’s still no confirmed date for when it’ll officially hit the statute books.
-
Anti-harassment duties for employers
New proactive duties will require businesses to prevent workplace harassment (including from third parties such as clients or customers). That means updated policies, better training, and – let’s be honest – a few (potentially) uncomfortable conversations about toxic workplace cultures. Specific employment law changes that are expected include:
- From April 2026, reporting sexual harassment will be explicitly included within whistleblowing legislation.
- From October 2026, the word “ALL” is being added to the preventative requirement – “All reasonable steps to prevent workplace sexual harassment.”
- From October 2026, organisational liability will be extended to include third party harassment and sexual harassment.
- The use of NDAs will be restricted so that they cannot prevent workers from disclosing harassment or discrimination, although a date has not been set for this.
-
Further strengthening of ‘Fair Tips’ legislation
Lastly, for those in hospitality or service sectors, October 2026 will also cement rules which came into force in 2024 ensuring workers get the full benefit of any customer tips or service charges – payroll teams, take note! You can read more about the changes here.
Looking ahead to 2027 and beyond
Now, these reforms are on the horizon and form part of the Employment Rights Bill; but it’s expected they won’t kick in until at least 2027. Still, they’re worth keeping on your radar now:
- Day-one right to unfair dismissal protection (goodbye, two-year threshold)
- Default flexible working arrangements baked into contracts
- Zero-hours contract restrictions and minimum hours guarantees
- Gender pay gap action plans becoming mandatory
You might not need to act just yet, but planning ahead means fewer headaches (and less panicked policy-rewriting) down the line.
What HR and payroll teams should do now
Here’s your survival checklist… or, if you prefer, a roadmap to staying sane through the 2026 compliance storm.
-
Audit your contracts and handbooks
Scrutinise anything that mentions leave eligibility, sick pay, dismissal rights or flexible working. The “two-year service” clauses? Those are on borrowed time.
-
Update your payroll and HR systems
Your payroll software should handle new SSP and pay rates automatically. If it doesn’t, get your vendor on the phone. Or, better yet, explore modern in-house payroll software (like ahem, Cezanne) that keep pace with legislative updates.
They’re your first line of defence against non-compliance. Make sure they know the rules around day-one rights, parental leave, and fair treatment. A ten-minute briefing now can prevent a tribunal later.
More eligible employees + day-one rights = higher payroll costs. Get Finance involved early so 2026’s increases don’t come as a nasty surprise.
-
Communicate with employees
Don’t wait for them to find out from the news. Clear, transparent updates build trust and cut down on HR-related admin when the questions start rolling in.
Will your business be ready?
The 2026 employment law changes aren’t just a compliance exercise – they’re a cultural shift. The UK’s moving toward a “fair work” model that prioritises equality, security and wellbeing. For HR and payroll teams, that means more responsibility… but also more influence. The businesses that prepare early, modernise their systems and train their managers will be the ones that thrive.
So, start planning, keep your policies fresh, and maybe add “employment law whisperer” to your LinkedIn bio… you’ll have earned it!
Kim Holdroyd
HR & Wellbeing Manager
Kim Holdroyd has an MSc in HRM and is passionate about all things HR and people operations, specialising in the employee life cycle, company culture, and employee empowerment. Her career background has been spent with various industries, including technology start-ups, gaming software, and recruitment.
