There will be a significant number of changes to employment law over the next 12-18 months, starting with 1 April 2026.
April is traditionally the month when the figures that employment tribunal’s use for calculating compensation change. It is also usually the month that statutory sick pay, maternity pay and national minimum wage are reconsidered.
From 1 April 2026 National Minimum Wage will increase as follows: –
- 21 years and over – £12.71
- 18 – 20 years – £10.85
- Under 18 years – £8.00
- Apprentice – £8.00
From 6 April 2026 the following elements will increase: –
- ‘A weeks’ Pay – increases to £751
- Unfair Dismissal compensatory award cap increases to £123,543
- Statutory sick pay to £123.25
- Maternity & Paternity and other family related leave payments to £194.32
A Weeks’ Pay
This is used to calculate a basic award in unfair dismissal claims and statutory redundancy pay.
Unfair dismissal
The new rates take effect from 6 April 2026. The unfair dismissal compensatory cap will therefore only apply to matters where the effective date of termination is on or after 6 April 2026. Dismissals prior to that date will have a compensatory cap of £118,223.
Statutory Sick Pay
The 3-day waiting period is also abolished with effect of 6 April 2026 as is the lower earnings limit for eligibility. This will result in more employees becoming entitled to receive SSP.
Paternity Leave
Paternity leave will become a ‘day one’ right from 6 April 2026 but the right to be paid paternity pay still requires 26 weeks service.
Redundancy Protective Award
From 6 April 2026 the maximum compensation award for a breach of collective consultation will increase from 90 days pay to 180 days pay.
Sexual Harassment
Sexual harassment will become a specific qualifying disclosure (whistleblowing) and this impact should be considered by employers if an employee raises a grievance.
This is a very brief review of future changes and should not be taken as legal advice. Please use our CONTACT FORM or email us at info@justemployment.com if your business needs assistance in updating your policies and procedures or requires other advice on these matters.
