Employment Rights Act 2025: get ready for the April 2026 changes

April is fast approaching and will involve some significant changes to UK Employment Law. Now is the time for HR Personnel to “get ready” for the changes that are coming into force, and this article aims to set out these changes and highlight the annual statutory rate increases that are usual at this time of year.

From 1 April 2026, the usual rate changes come into force, including the increases to hourly rates, which will be as follows:

• £12.71 – National Living Wage (age 21+)
• £10.85 – ages 18–20
• £8.00 – ages 16–17
• £8.00 – apprentice rate
• £11.10/day – accommodation offset.

The week’s pay for redundancy will increase to £751 (for dismissals taking effect from 6 April 2026). The rate for Statutory Sick Pay will increase to £123.25 per week. Statutory family leave will increase to £194.32 per week (where other rates are not applicable).

There will also be an abolition of the Certificate Officer levy, signalling a pro-union policy direction from the Government.

From 6 April 2026, some of the Employment Rights Act 2025 reforms will also come into effect:

• along with the increases to the cost of SSP, the substantive changes to SSP also come into effect. This becomes a day-one payment, with the waiting days abolished and the lower earnings limit removed. This could be a very significant change financially to companies that currently rely on the waiting days
• day one rights for paternity leave, and unpaid parental leave, which come into effect
• the Bereaved Partners’ Paternity Leave Regulations 2026 come into effect, allowing a father or partner (subject to eligibility requirements) to take up to 52 weeks off (unpaid) to care for a child in the first year of life or after adoption, where there has been a death of the mother, primary adopter or intended parent in a surrogacy situation
• sexual harassment disclosures will be explicitly protected under whistleblowing legislation
• the protective award for failures to consult properly in collective redundancies will double from 90 to 180 days’ pay per employee
• the voluntary phase for equality action plans and menopause action plans commences (mandatory phase expected in 2027 for businesses with 250+ employees)
• trade union reforms start to take place, including a simplified recognition process.

To properly prepare for the changes, employers should review contracts and handbooks to ensure everything is updated, and consider internal management and business plans, particularly where increased costs are likely. Managers should also receive training to understand developments in this area and how they may affect staff.

If you require further support, we would be happy to discuss the changes in detail with you and explore how Ashtons Legal can assist your business.

Is your organisation prepared?

For HR teams and business leaders, preparation will be essential. Understanding the likely direction of travel and taking early action can help reduce risk, support good employee relations and ensure organisations are well positioned for the years ahead. 

A little planning now can save a lot of time, cost and stress later. 

We've put together a downloadable checklist to help you plan for the upcoming changes.

Ashtons Online Employment Law Training

Even the most experienced HR professionals sometimes need expert legal guidance. At
Ashtons Legal, our Employment Team brings specialist knowledge in employment law
and practical HR Experience together, giving you clear, actionable advice that you can
trust.

Our training is designed to complement your HR expertise, helping you navigate complex
employment law issues with confidence and ensuring your organisation stays compliant.

Our trainers have significant experience in HR and employment issues across both the public and private sectors – we deliver engaging, interactive sessions with high levels of positive client feedback.

The employment guidance for business portal

We have an easily accessible Ashtons Legal Online HR Portal for businesses, which contains over 100 HR documents, templates, and draft letters covering over 14 topics, including contracts and offer letters, disciplinary issues, flexible working, performance management, family leave, sickness absence, recruitment, termination of employment, and redundancy. 

If you would like unlimited one-year access to this portal, we charge £325 plus VAT.

Please get in touch by emailing us on enquiries@ashtonslegal.co.uk.

Practical support for Owner-Managed & Family Businesses

Owner-managed businesses and family businesses can range from new ventures to well-established companies operating across borders and across generations.

Such businesses can encounter a multitude of legal issues, but often don’t have the bandwidth to separate things out or to align the present need with the long-term direction – they need practical, well-rounded advice to draw attention to the key matters and keep them moving forward.

Our multidisciplinary team recognises the challenges faced by committed business owners and will help you overcome them by understanding your values and vision, enabling you to achieve your desired outcomes.

Please remember that Ashtons Legal is available to assist you and your business with their full range of business, individual and injury law services including commercial and residential property, corporate advice, dispute resolution, family law, estate planning, personal injury and medical negligence. 

We Can Help You

For specific advice for your business, please get in touch with our specialist Employment Law team on enquiry@ashtonslegal.co.uk or by calling 0330 404 0778.

To unsubscribe from this newsletter, please click the button below.

To be removed from this newsletter or to update your subscription preference, please click on the links below. 

Ashtons Legal LLP is a limited liability partnership registered in England & Wales with number OC445631 whose registered office is at The Long Barn, Fornham Business Court, Bury St Edmunds, Suffolk, IP31 1SL. We are authorised and regulated by the Solicitors Regulation Authority (licensed body number 8003918).

This email and its contents, together with any attachments, are confidential to the sender and the intended recipient(s) and may be covered by legal professional privilege. If you are not the intended recipient of this email and its attachments (if any), you must take no action based upon them, nor must you copy them or show them to anyone. Please contact the sender if you believe you have received this email in error.

E-Mail transmission cannot be guaranteed to be secure or error-free. We cannot accept liability for any errors or omissions which arise as a result of transmission or for any damage that you sustain as a result of software virus or other corruption accordingly.

Any articles or information contained in the E-bulletin is intended as a general review of the subjects featured and does not consitute legal or other professional advice. Detailed specialist advice should always be sought before taking or refraining from taking any action.