Claire Scanlan, an employment law solicitor with Buckles Solicitors, explains the employment law changes small businesses need to prepare for in 2026
With employment law reforms landing in both April and October, employers will need to adapt to higher statutory costs, expanded worker rights and a more interventionist regulatory framework, all while continuing to manage day-to-day operational pressures.
One of the most noticeable shifts from April 2026 is the move towards immediate employment rights. Paternity leave and unpaid parental leave will become “day one” entitlements, removing the qualifying periods that previously gave employers a short window before these rights applied. While this change is intended to improve fairness and access, it also means that businesses will need to factor family-related absences into workforce planning from the outset of any new hire.
At the same time, statutory family pay rates will increase, with maternity, paternity, adoption, shared parental, bereavement and neonatal care pay rising to 194.32 per week. For employers who offer enhanced benefits, this uplift may have a knock-on effect on overall employment costs, making it important to understand how contractual schemes interact with statutory minimums.
Sickness absence
Sickness absence will also look very different. Statutory Sick Pay will become payable from the first day of illness, and the lower earnings limit will be removed, extending eligibility to a much wider group of...
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