Major changes to employment law are set to take effect across the UK from April 2026, bringing new rights for millions of workers and new responsibilities for employers. Among the most significant reforms are updates to sick pay rules, improved protections against unfair dismissal, and expanded parental leave rights.
These changes form part of the wider reforms introduced under the Employment Rights Act, which aims to strengthen worker protections and modernize workplace regulations.
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Sick Pay Will Be Available from the First Day of Illness
One of the biggest changes coming into effect from April 6, 2026, concerns Statutory Sick Pay (SSP). Currently, employees typically receive sick pay starting from the fourth day of illness due to a three-day waiting period. Under the new rules, this waiting period will be removed.
From April 2026, eligible employees will be able to receive statutory sick pay starting from the first full day of sickness absence. The aim of this reform is to ensure that workers do not face financial hardship when they need to stay home due to illness.
The government believes the change could also help prevent the spread of illness in workplaces. When employees are financially supported during sick leave, they are less likely to feel pressured to work while unwell.
More Workers Will Become Eligible for Sick Pay
Another major reform removes the Lower Earnings Limit, which previously prevented many low-income workers from qualifying for statutory sick pay.
By eliminating this threshold, a wider range of employees will be able to access financial support if they fall ill. This measure is expected to benefit workers in part-time roles, temporary jobs, and other lower-paid positions that previously fell below the eligibility line.
The weekly statutory sick pay rate will increase to £123.25, with payments calculated at 80% of an employee’s average weekly earnings or the flat rate, whichever is lower.
Research Highlights Impact on Employers and Workers
Research commissioned by the workplace conciliation service Acas suggests that the sick pay reform will be the most significant change affecting both employers and employees.
According to the study, 43% of employers said that paying sick pay from the first day of illness would have the greatest impact on their businesses. Meanwhile, 36% of workers identified this change as the most important reform for them.
Niall Mackenzie, chief executive of Acas, described the legislation as a major shift in employment law.
He emphasised that both businesses and employees will need to understand the new regulations and adapt to the updated workplace rules. Acas plans to provide guidance and training to help organisations implement the changes effectively.
New Protections Against Unfair Dismissal
Another key reform concerns unfair dismissal protections. Currently, employees typically need two years of continuous employment before they gain protection against unfair dismissal.
Under the new law, this requirement will be reduced significantly. Workers will gain protection after six months in a job, making it easier for employees to challenge unfair treatment.
This rule is expected to take effect in January 2027, giving businesses time to prepare for the change.
Minimum Wage and Parental Pay Increases
Alongside changes to sick pay, several other financial updates will take effect from April 2026.
Minimum wage rates will increase as follows:
- £12.71 per hour for workers aged 21 and over
- £10.85 per hour for workers aged 18 to 20
- £8.00 per hour for workers under 18 and apprentices
Statutory parental pay will also rise to £194.32 per week, providing additional financial support to families during parental leave.
These changes are designed to improve living standards and provide greater economic stability for working households.
New “Day One” Rights for Parents
The reforms will also introduce new parental rights. Fathers and partners will gain day-one rights to paternity leave, meaning they will not need to work for a minimum period before accessing the benefit.
Similarly, all parents will gain the right to unpaid parental leave from their first day of employment. These changes aim to create a more family-friendly workplace environment and support work-life balance.
New Agency to Enforce Workplace Rights
Another important development will be the launch of the Fair Work Agency in April 2026.
This new body will oversee enforcement of employment regulations, including holiday pay and sick pay compliance. The agency will help ensure that employers follow the updated laws and that workers receive the rights they are entitled to.
New Rules on Workplace Harassment and “Fire and Rehire”
Further reforms scheduled for October 2026 will address workplace practices such as “fire and rehire,” where employers dismiss staff and offer new contracts with less favorable terms.
The new legislation will make such practices more difficult by requiring stronger justification and more thorough consultation before employers can implement contract changes.
Employers will also face expanded responsibilities to prevent workplace harassment. Businesses will be required to take “all reasonable steps” to protect employees from harassment, including incidents involving contractors, agency workers, or clients.
Additionally, reporting sexual harassment will become a protected disclosure under whistleblowing rules, giving employees stronger legal protection when raising concerns.
Women and Low-Paid Workers Expected to Benefit Most
Trade union research suggests that women, particularly those in low-paid jobs, will benefit significantly from the new sick pay reforms.
The Trades Union Congress (TUC) estimates that around 4.7 million women will benefit from improved sick pay rights, including more than 830,000 women who were previously ineligible due to earning below the weekly threshold.
TUC General Secretary Paul Nowak said the reforms represent an important step toward addressing workplace inequality and improving protections for vulnerable workers.
A Major Shift in Workplace Rights
Overall, the reforms coming into force from April 2026 represent one of the most significant updates to employment law in recent years. By expanding access to sick pay, strengthening dismissal protections, and improving parental rights, the new measures aim to create a fairer and more supportive working environment.
As the changes roll out, both employers and employees will need to understand the new rules to ensure a smooth transition into this updated framework of workplace rights.
