1. Employment law changes are coming in April 2026 – What small business owners need to know

Designed to protect the rights of workers, the landmark Employment Rights Act 2025 became law on 18th December 2025. It marks the biggest overhaul in employment law for a generation.

Small business owners will need to ensure they understand what the changes mean and how to implement them to ensure they stay compliant. Here we explain the key changes coming in April 2026 and beyond and what actions you can take now to prepare.

What is the Employment Rights Act 2025?

Offering protection, fairer pay and more rights to millions of workers, the Employment Rights Act 2025 focuses on six key areas:

1. Ensuring jobs offer a baseline security to workers – includes zero-hour contracts, ‘fire and rehire’ or ‘fire and replace’ practices, unfair dismissal and collective redundancy rights.
2. Ensuring workers get fair pay – includes statutory sick pay and tipping.
3. Strengthening family-friendly rights – includes paternity and unpaid parental leave from day one, bereavement leave, protections against dismissal for pregnant women and flexible working requests.
4. Prioritising fairness, equality and wellbeing – includes steps to prevent sexual harassment, protect whistle-blowers and improve gender equality.
5. Modernising trade union legislation
6. Improving enforcement of employment rights

These new laws are being phased in over a two-year period, with April 2026 one of the first implementation milestones.

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