In this edition’s eNews, we take a more detailed look at the significant employment law changes coming into effect this spring. These include the wide‑reaching reforms to Statutory Sick Pay (SSP), the uplift to the National Minimum Wage and National Living Wage rates and the phased implementation of the Employment Rights Act. Together, these changes represent the most substantial shift in employer obligations for over a decade and it is essential that organisations prepare in good time.
New Statutory Sick Pay (SSP) Rules – from 6 April 2026
From 6 April 2026, the SSP framework undergoes a major transformation aimed at widening access and offering stronger financial protection to workers. One of the most notable changes is that SSP will now become payable from the first day of sickness, removing the long‑standing system of three unpaid ‘waiting’ days. This means that any employee who is scheduled to work on the day they fall ill will be eligible for SSP immediately, without the need to accumulate multiple days of absence.
In addition, the previous Lower Earnings Limit – which meant that employees needed to earn above a specific weekly threshold to qualify – has now been abolished. Under the new rules, all employees qualify for SSP regardless of how much they earn, provided they were due to work on the day of sickness. This change significantly benefits casual, part‑time and zero‑hours workers who may not have been eligible previously.
The calculation of SSP has also been modernised. Payments will now be based on the lower of 80% of an employee’s Average Weekly Earnings or the statutory weekly rate of £123.25. This approach ensures that workers with lower or fluctuating incomes receive a fairer reflection of their typical earnings, while also maintaining a consistent statutory cap.
Employers should take the time to review and update internal sickness policies, payroll systems and absence management procedures to reflect these reforms, especially as reporting accuracy becomes increasingly important.
Internet link: GOV.UK SSP Reform
National Minimum Wage and National Living Wage Increases – from 1 April 2026
Alongside changes to SSP, employers must also prepare for increases to the National Minimum Wage and the National Living Wage, which take effect from 1 April 2026. These rises reflect the Government’s continuing strategy to align statutory pay levels more closely with the cost of living and broader economic performance.
The National Living Wage for employees aged 21 and over will rise to £12.71 per hour, representing a meaningful uplift for millions of workers. Younger employees will also see increases, with rates for those aged between 18 and 20 rising to £10.85 per hour and between 16 and 17 to £8.00 per hour.
For employers, these adjustments may require a careful review of staffing budgets, pay structures and payroll systems. It may also be necessary to reassess salary differentials to ensure fairness and avoid compression issues, particularly in organisations where multiple roles are clustered around the minimum wage threshold.
Internet link: GOV.UK Minimum Wage 2026
Employment Rights Act Roadmap – Key Dates 2026–2027
The Employment Rights Act continues to be rolled out in stages, with several important provisions taking effect throughout 2026 and into 2027. February 2026 marked the beginning of the new trade union reforms, which simplify ballot procedures and strengthen protection for employees engaged in lawful industrial action.
From April 2026, further measures will come into force, including the repeal of the levy paid to the Certification Officer and the introduction of day‑one rights to paternity leave and unpaid parental leave. Other protections such as enhanced whistleblowing safeguards and expanded obligations relating to harassment prevention follow shortly after.
April also brings the establishment of the Fair Work Agency which is expected to take a more assertive role in monitoring employer compliance. Later in the year, between August and October, new duties relating to trade union access and workplace harassment are due to come into force.
Looking ahead to January 2027, one of the most consequential changes will be the reduction of the unfair dismissal qualifying period from two years to six months, combined with the removal of the statutory cap on compensation. These changes significantly increase potential employer exposure and reinforce the importance of consistent documentation, robust probation management and clear HR processes.
Internet link: GOV.UK ERA Roadmap
For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.