Legal News | 13.04.26
Employment Law Update April 2026
With the clocks having now sprung forward, we have summarised the key changes that employers should be looking out for in April 2026.
Changes to the National Minimum Wage and National Living Wage
From 1 April 2026 the National Living Wage and the National Minimum Wage will increase to the following rates:
| Hourly rate | Age |
|---|---|
| £12.71 | National Living Wage (21 and above) |
| £10.85 | 18 to 20 |
| £8.00 | Under 18 |
| £8.00 | Apprentice |
Changes to Compensation Limits
Introduced on 6 April 2026.
| Maximum guarantee payments | £41 per day (maximum £205, five days in any three-month period) |
| Maximum week’s pay for calculating redundancy and unfair dismissal basic award | £751 |
| Maximum basic award for unfair dismissal and statutory redundancy payment | £22,530 (30 weeks’ pay subject to the limit on a week’s pay) |
| Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and on working time grounds only | £9,157 |
| Maximum compensatory award for unfair dismissal (unlimited for certain automatically unfair dismissals, for example, health and safety or whistleblowing) | £123,543 |
Changes to Statutory Rates
| Statutory Maternity Pay – first 6 weeks | 90% of the employee’s average weekly earnings |
| Statutory Maternity Pay – for the remaining weeks | £194.32 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Maternity Allowance – not entitled to Statutory Maternity Pay | £194.32 per week, subject to eligibility. |
| Statutory Paternity Pay | £194.32 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Adoption Pay – first 6 weeks | 90% of the employee’s average weekly earnings |
| Statutory Adoption Pay – for the remaining weeks | £194.32 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Shared Parental Pay | £194.32 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Parental Bereavement Pay | £194.32 per week or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Neonatal Care Pay | £194.32 per week or 90% of the employee’s average weekly earnings, whichever is lower. |
Vento Bands
The Vento bands for injury to feelings awards in discrimination claims are increasing for claims presented on or after 6 April 2026 to the following:
| Lower band (less serious cases): | £1,300 - £12,600 |
| Middle band (cases that do not merit an award in the upper band): | £12,600 to £37,700 |
| Upper band (most serious cases): | £37,700 to £62,900 |
| Most exceptional cases | In excess of £62,900 |
For the purposes of calculating Statutory Redundancy Pay, a week’s pay will be capped at £751 per week from 6 April 2026. The total amount payable will be based on the number of years of completed service, multiplied by the lower of the actual weeks’ pay, of the cap, and a multiplier of ½, 1 or 1 ½ for each year of service, depending on the age of the employee in that same year.
From 6 April 2026, Statutory Sick Pay (SSP) will be a day one right with the three waiting days abolished. Eligibility will no longer depend on meeting the Lower Earnings Limit, widening access to lower‑paid and part‑time workers.
From 6 April 2026, SSP is payable at the lower of the statutory flat rate of £123.25 per week, or 80% of the worker’s average weekly earnings. Transitional protections apply for ongoing absences spanning 6 April 2026.
Family Rights:
- Paternity Leave– Becomes a day‑one right, subject to meeting the qualifying conditions.
- Unpaid Parental Leave- Becomes a day‑one right.
- Flexibility after Shared Parental Leave-The restriction preventing paternity leave after taking Shared Parental Leave will be removed, offering families more flexibility.
- Bereaved Partner’s Paternity Leave– A new statutory day‑one entitlement to allow a partner up to 52 weeks of unpaid bereavement leave if a mother or primary adopter dies.
Collective Redundancy from 6 April 2026 – A collective redundancy occurs when an employer proposes to dismiss 20 or more employees at a single establishment within a 90-day period. The maximum protective award for failing to consult appropriately on collective redundancies will increase, doubling from 90 to 180 days’ pay.
Sexual harassment disclosures protected from 6 April 2026 – A disclosure about sexual harassment will expressly qualify as a ‘protected disclosure’ under whistleblowing law, giving whistleblowers protection from unfair dismissal when making a sexual harassment disclosure.
Equality Action Plans (gender pay gap & menopause) – Large employers (250+ employees) will be able to publish Equality Action Plans on a voluntary basis from April 2026.
Fair Work Agency Launch on 7 April 2026 – Sees the launch of the Fair Work Agency: an enforcement body with greater compliance powers. The agency will aim to bring together existing enforcement bodies, and will take responsibility for monitoring key employment rights, including holiday pay, SSP, and national minimum wage over time.
Obligation to keep holiday records – Employers will be required to keep accurate holiday records to illustrate that the employer has complied with workers’ statutory entitlements to holiday and holiday pay for six years.
This article should not be relied upon as legal advice. If you would like specific legal advice, or require any assistance, then please get in touch: 020 4549 2460 or 01380 733300 | commercial@wansbroughs.com
