HR Law Update 2026: A Message From Mark on What Employers Need to Prepare for Now

If you are a business owner, HR lead or manager looking at the 2026 employment law changes and thinking, this looks like a lot, you are not wrong.

There is a lot changing.

Acas has described the wider Employment Rights Act reform package as “a once-in-a-generation change to employment law in Britain.” That gives you a fair idea of the scale. But here is the important bit: do not let the big firms make this sound bigger or scarier than it needs to be. These changes are real, they matter, and they need action — but with the right plan, they are manageable.

For most employers, the job now is simple in principle:

What employers need to do now

Update your policies.
Check payroll.
Brief your managers.
Communicate clearly with employees.
Make sure the right owner is responsible for each action before the deadlines hit.

That is how you stay in control.

At Employee Passport, we believe good compliance should not feel chaotic. It should mean clear actions, clear owners, clear deadlines and proper records. That is what helps SMEs stay on top of change without drowning in admin.

The key HR law changes employers need to prepare for in April 2026

The main implementation dates employers need to know are 1 April 2026, 6 April 2026 and 7 April 2026, with further reforms continuing later in 2026 and into 2027. The government’s updated implementation timeline confirms that April is the start of a wider phased rollout, not a one-off event.

Statutory Sick Pay changes from 6 April 2026

What is changing

From 6 April 2026, Statutory Sick Pay will be:

  • available to eligible employees regardless of earnings
  • payable from the first full day of sickness absence
  • paid at 80% of average weekly earnings or £123.25 a week, whichever is lower

This is a major shift from the previous setup, where lower earners could miss out and waiting days applied before payment started. GOV.UK has specifically told employers to review sickness absence policies, make sure payroll is ready, and communicate the changes to employees before the new rules come in.

What employers should do

Policy

Review your sickness absence policy and remove any wording that reflects the old waiting-day rules or earnings threshold.

Payroll

Make sure payroll settings, calculations and internal checks are updated before 6 April 2026.

Manager guidance

Managers need clear guidance on what changes in practice, especially around recording absence from day one and giving employees consistent information. This is where confusion usually starts if training is missed. This is an inference based on the government’s direction to update policies, payroll and communications before the change date.

Day-one paternity leave and unpaid parental leave from 1 April 2026

What is changing

From 1 April 2026, employees become eligible for paternity leave and ordinary unpaid parental leave from their first day of employment. The implementation timeline also confirms that newly eligible employees could begin giving notice from 18 February 2026. During the transition period, some paternity leave notice rules were shortened to help families access the entitlement quickly.

GOV.UK’s leave guidance now reflects this directly:

  • paternity leave becomes a day-one right from 1 April 2026
  • unpaid parental leave becomes a day-one right from 1 April 2026

Why this matters for employers

A lot of employers still have family leave documents built around older qualifying periods. That means there is a real risk that contracts, handbooks, onboarding packs or manager guidance still refer to service thresholds that no longer apply.

What employers should do

Onboarding documents

Update starter documents, handbooks and policy wording so new employees are not given outdated eligibility information.

Manager training

Managers need to understand that service-based assumptions around paternity leave are no longer safe.

Accountability

Assign an owner for the policy update, set a clear deadline, keep an evidence record of the new wording, and give managers visibility of the final version. That is how you reduce mistakes.

Neonatal Care Leave and Pay: already a live employer responsibility

What employers need to know

Neonatal Care Leave and Pay is now a live issue for employers and one that needs both a legal process and a human one.

GOV.UK says an employee can take up to 12 weeks of Neonatal Care Leave if they are classed as an employee, with leave available where a baby receives neonatal care for at least 7 continuous full days, and the leave must be taken within 68 weeks of the baby’s birth. The entitlement to leave is day one; statutory pay has separate eligibility rules and is paid at the statutory rate or 90% of average weekly earnings, whichever is lower.

Why this needs careful handling

This is one of those areas where getting the policy right is only half the job. The other half is making sure managers know how to respond with empathy, clarity and consistency.

In real terms, that means:

Action

Create a simple internal process for requests, records and payroll handling.

Owner

Make sure HR or a named people lead owns the process.

Evidence

Keep the right leave and pay records in one place.

Visibility

Give managers practical guidance, not just policy wording.

National Minimum Wage increases from April 2026

New rates employers need to budget for

From April 2026, the new minimum wage rates are:

  • £12.71 for workers aged 21 and over
  • £10.85 for workers aged 18 to 20
  • £8.00 for workers aged 16 to 17
  • £8.00 for apprentices who qualify for the apprentice rate

These are not just payroll figures. They affect budgeting, recruitment, offer letters, workforce planning and margin control, especially in sectors with large hourly-paid teams.

Statutory family pay rates for 2026 to 2027

From the new 2026 to 2027 rates, statutory maternity, paternity, adoption, shared parental, parental bereavement and neonatal care pay are set at £194.32 a week or 90% of average weekly earnings, whichever is lower. These rates apply from 5 April 2026 for the relevant payments.

Again, this looks like a standard annual uplift on paper. In practice, it still means payroll updates, budgeting checks and communication changes.

More employment law reforms are coming after April 2026

April is only the first big wave.

The government’s implementation timeline shows further measures including:

  • the Fair Work Agency being established on 7 April 2026
  • additional measures in October 2026, including trade union and sexual-harassment-related reforms
  • major reforms from 1 January 2027, including the change to unfair dismissal protection after 6 months’ service and fire-and-rehire reforms

That is why I would strongly advise employers not to treat April as a one-off compliance tidy-up.

Why SMEs should not panic about the 2026 HR law changes

This is where I think smaller employers need a bit of straight talking.

You do not need to panic.
You do not need to get lost in legal jargon.
And you do not need to be frightened into thinking only a big consultancy can get you through this.

What you do need is structure.

A sensible plan for most SMEs looks like this:

1. Review the policies that are directly affected

Focus first on sickness absence, paternity leave, unpaid parental leave, neonatal care processes and pay-related documents.

2. Check payroll and statutory rates

Make sure your systems reflect the new SSP rules and 2026 to 2027 statutory pay thresholds and rates.

3. Train managers before problems happen

Managers are the front line. If they are unclear, employees get mixed messages and disputes become more likely. This is an inference, but it follows directly from the scale of manager-facing change in leave, absence and compliance processes.

4. Set ownership and deadlines

Every change needs an owner, an action, a deadline, and an evidence record showing it was completed.

5. Communicate early

Employees should not find out about these changes through rumour, social media or inconsistent manager conversations. GOV.UK is already telling employers to communicate SSP changes in advance, and the same practical principle applies across the wider April package.

The strategic issue for HR leaders in 2026

CIPD has warned there is “a further handbrake on hiring” risk linked to the new Employment Rights Act measures, with its Labour Market Outlook research saying many employers expect increased costs and weaker permanent job creation. Whether or not you agree with that view, it does underline one thing: poor implementation will make change feel heavier than it needs to.

The better response is not to freeze.

It is to get organised.

Good employers will use this period to improve policy clarity, strengthen manager capability and create cleaner people records. That is better for compliance, but it is also better for trust.

Final thought from Mark

The businesses that handle 2026 best will not be the ones doing the bare minimum at the last minute.

They will be the ones that stay calm, act early and keep things simple.

That means:

  • one place for records
  • clear actions
  • clear owners
  • clear deadlines
  • proper evidence
  • better visibility for managers

That is how you reduce admin, reduce mistakes and stay in control as the rules change.

Big firms will always make major reform sound overwhelming. For SMEs, it does not have to be.

You just need the right system and a practical plan.

Call to action

Need a simpler way to keep HR records, onboarding, absence and compliance in one place?
Book a demo of Employee Passport and see how to give managers better visibility, keep evidence together, and stay on top of change without adding more admin.

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