Employment Law Changes Coming in 2026: Are You Ready?
Significant changes to UK employment law are set to take effect from February 2026, with further reforms rolling out through April 2026 and into 2027.
These updates will impact employers, recruitment agencies, umbrella providers, and workers, particularly in areas such as Statutory Sick Pay, family leave rights, redundancy protections, and enforcement.
With implementation approaching, now is the time for businesses to review their payroll processes, employment documentation, and internal policies to ensure they remain compliant.
At People Group Services, we are monitoring these developments closely and supporting our clients in understanding how the changes may affect payroll operations and employment responsibilities.
Below is a summary of the key reforms and links to official guidance.
Key changes from February 2026
Trade Union Measures: Reforms will simplify certain administrative requirements for trade unions, including provisions relating to industrial action procedures.
Key changes from April 2026
Statutory Sick Pay (SSP) Reform: Eligibility for Statutory Sick Pay will widen. The lower earnings threshold will be removed, and the current three-day waiting period will no longer apply. This means more workers will qualify, and payments may begin earlier than under current rules.
Day-One Family Leave Rights: Employees will become entitled to Paternity Leave and Unpaid Parental Leave from the first day of employment. Notice for these rights can be given from 18 February 2026.
Bereaved Partner’s Paternity Leave: A new right will allow eligible individuals to take leave following the death of a child’s mother or primary adopter.
Collective Redundancy Protections: Protective awards for non-compliance with collective redundancy obligations will increase, raising the potential financial exposure for employers who fail to meet consultation requirements.
Enhanced Whistleblowing Protections: Workers who report sexual harassment will benefit from stronger statutory protections.
The Fair Work Agency: A new enforcement body – the Fair Work Agency – will be introduced to oversee workers’ rights and support businesses with compliance.
For Employers: Preparing for the Changes
The upcoming reforms have been developed to support a fair and productive labour market. However, they will require employers to review contracts, payroll processes, HR procedures, and policies.
The staged introduction between 2026 and 2027 provides time to prepare, but early planning will reduce risk. Businesses should consider:
- Reviewing sick pay policies and payroll systems
- Updating family leave documentation
- Assessing redundancy consultation processes
- Ensuring whistleblowing policies are up to date
- Monitoring guidance relating to the Fair Work Agency
At People Group Services, we are closely monitoring these developments and supporting our clients in understanding how payroll and employment obligations may be affected.
For detailed government guidance tailored to employers, you can find out more here…
For Employees and Workers: Understanding Your Rights
From February 2026 onwards, a number of changes will strengthen workplace protections and improve access to statutory rights.
The Employment Rights Act 2025 aims to enhance security and fairness across a wide range of working arrangements including new starters, parents, and those working variable hours.
The reforms are being introduced gradually to allow employers time to prepare, but workers should familiarise themselves with:
- Changes to Statutory Sick Pay eligibility
- New day-one family leave entitlements
- Bereavement leave provisions
- Enhanced whistleblowing protections
For detailed government guidance for employees and contractors, you can find out more here…
