Significant changes are on the horizon with the introduction of the Employment Rights Act 2025, bringing new responsibilities and considerations for employers across all sectors. These updates are designed to strengthen employee protections and modernise workplace practices, but they may also require you to review and update your policies, procedures, and day-to-day approach to people management.

Navigating employment law changes can feel complex, but you don’t have to do it alone. At RussellHR, we work alongside organisations to translate legal requirements into practical, tailored solutions that work for your business. Whether you need a policy review, manager guidance, or hands-on support implementing changes, we’re here to help you stay compliant and confident.

Get in touch to discuss how we can support you in implementing and preparing for these changes.

Updated: 20 April 2026

April 2026

National Minimum Wage. From 1st April 2026, the National Minimum Wage (NMW) and National Living Wage (NLW) will increase as follows:

NLW for workers aged 21 and over: 

• rate from 1 April 2026 (per hour) — £12.71. 

NMW for workers aged 18‒20: 

• rate from 1 April 2026 (per hour) — £10.85. 

Young workers rate for workers aged 16‒17: 

• rate from 1 April 2026 (per hour) — £8.  

Apprentices under 19, or over 19 and in the first year of the apprenticeship: 

• rate from 1 April 2026 (per hour) — £8.  

Accommodation offset (daily): 

• rate from 1 April 2026 (per hour) — £11.10. 

Accommodation offset (weekly): 

• rate from 1 April 2026 (per hour) — £77.70

Statutory Maternity Pay (SMP). From 4th April 2026, this will increase from £187.18 to £194.32.

Statutory Sick Pay (SSP). From 6th April 2026, Statutory Sick Pay (SSP) will increase from £118.75 to £123.25. The Lower earnings limit (per week) will be removed.

Other Parental Leave Pay. From 6th April 2026, the rate for Statutory Shared Parental Pay (ShPP), Statutory Adoption Pay (SAP), Statutory Paternity Pay (SPP), Statutory Parental Bereavement Pay (SPBP) and Statutory Neonatal Care Pay (SNCP) will increase from £187.18 to £194.32.

Redundancy. For Statutory redundancy purposes, the average weekly pay is capped at £751 for redundancies on or after 6 April 2026.

• The maximum statutory redundancy pay is £22,530.
• Length of service remains capped at 30 years.

Employment Rights Act 2025

From 6th April 2026:

• A new Fair Work Agency (FWA) will be established to bring together different government enforcement bodies to protect workers' rights by investigating wage underpayment, holiday pay, and exploitation. 
• On the establishment of the FWA, there is a new duty for employers to keep detailed holiday entitlements and pay records. 

• Statutory Sick Pay (SSP) to be paid to all workers from the first day of absence. The requirement to earn above the lower earnings limit and to serve three waiting days has been removed from SSP eligibility. Now, all those on an employment contract can receive it at either the statutory rate or 80% of their earnings, whichever is lower, from the first day of absence.

• Parental and paternity leave to become a day-one right, removing the 26-week service requirement to take paternity leave.   Also removed is the restriction on taking paternity leave after shared parental leave.

• Changes relating to trade union recognition come into effect, including transitional provisions where the recognition process was started prior to 6 April 2026 and is ongoing past that date. These changes include:

                   - a new ⁠simple majority required in recognition ballots (removing the previous 40% support threshold)

                   - removal of the likely majority test when a union submits a recognition application.

• The definition of “protected disclosure” in whistleblowing legislation has been expanded to include disclosures of sexual harassment that have occurred, are occurring, or are likely to occur.

• The maximum protective award a tribunal can make when a business has failed to follow its obligations on collective consultation will be increased from 90 to 180 days’ pay.

May 2026

Real Living Wage. Employers who have voluntarily committed to pay the Real Living Wage have until the 1 May to pay the uprated amount of the Real Living Wage. The new rates are £14.80 an hour in London (a 6.9% increase (95p) from the current rate of £13.85) and £13.45 an hour across the rest of the UK (a 6.7% increase (85p) from the current rate of £12.60). The rates apply to all workers over the age of 18.

Coming in October 2026

As part of the Employment Rights Act 2025:

• Restrictions on the use of fire and re-hire unless in limited circumstances.
• Requirement to inform workers of their right to join a trade union.
• Requirement for employers to take “all reasonable steps” to prevent sexual harassment of their employees.
• Obligation for employers to not permit the harassment of their employees by third parties.
• Extension of employment tribunal time limits from three months to six months.
• Tightening of tip laws.
• Strengthening of trade unions' right of access.
• Introduction of new rights and protections for trade union representatives.
• Extension of the protections against detriments for taking industrial action.
• Introduction of regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body.

Due in 2027

The following changes will be brought in by the Employment Rights Act:

• Reduction of the two-year service requirement to six months for ordinary unfair dismissal claims from 1 January 2027. This will have retrospective effect, so all employees with six months’ service or more at that date will have unfair dismissal protection.
• Compensation limits in unfair dismissal cases will be removed, so there will no longer be an upper maximum limit of 52 weeks’ pay or £118,223.
• Requirement for employers to explain why it was reasonable to refuse a flexible working request.
• Introduction of regulations to specify steps that are to be deemed as “reasonable”, to determine whether an employer has taken all reasonable steps to prevent sexual harassment.
• Requirement to offer zero hour, low hour and agency workers a guaranteed-hours contract reflecting their usual working hours and notice or compensation for changes to shifts.
• Introduction of unpaid bereavement leave, and the extension of parental bereavement leave criteria to cover miscarriages before the 24th week of pregnancy.
• Introduction of new collective consultation thresholds in collective redundancy situations.
• Extension of the rights and protections for pregnant workers.
• Introduction of an industrial relations framework and blacklisting provisions.
• Tighter regulation of umbrella companies.
• Mandatory gender pay gap and menopause action plans.