Significant UK employment law changes are coming into force from April 2026, bringing new responsibilities for employers across pay, compliance, and workforce management.
From increases to the National Minimum Wage and National Living Wage, to major reforms under the Employment Rights Act 2025, businesses will need to review how they manage people, policies, and risk.
For many employers, particularly SMEs, the challenge is not just understanding the changes but applying them correctly in practice.
Here is a high-level overview of the most important employment law updates for 2026:
From April 2026, statutory rates are increasing across:
In addition, changes to redundancy calculations, including the weekly pay cap, will affect how dismissal costs are calculated.
These updates may require employers to review pay structures, particularly where existing rates sit close to minimum thresholds or align with industry agreements.
The Employment Rights Act changes in 2026 introduce a number of important reforms:
Employers will be required to retain these records for six years, increasing the importance of robust HR systems and processes.
A new Fair Work Agency, launching in April 2026, will act as a central enforcement body with powers to:
This represents a shift towards more proactive enforcement, meaning compliance failures are more likely to be identified and acted upon.
Changes to trade union legislation will:
Employers will need to update onboarding processes and internal communications to reflect these requirements.
The financial risk of getting redundancy processes wrong is increasing significantly.
From April 2026, the maximum protective award for failing to inform and consult employees will double, increasing potential liability for employers.
This makes correct process and documentation more important than ever.
Larger employers will be expected to take more structured action on:
While voluntary from 2026, these requirements are expected to become mandatory, meaning early preparation will be beneficial.
These UK employment law changes go beyond simple updates — they represent a shift towards greater accountability, increased documentation and evidence, and stronger enforcement.
Employers may need to:
Without the right support, this can quickly become complex and time consuming.
BESA's Employment Affairs support is designed to act as an extension of your business.
Whether you are navigating new legislation or stepping into unfamiliar responsibilities like HR, you have access to:
All included within your membership.
For many businesses, this support helps reduce risk, avoid costly mistakes, and provides reassurance — often at a fraction of the cost of external consultants or potential tribunal claims.
While this blog highlights the key employment law changes for April 2026, it does not cover the full detail or required actions.
BESA members can access the full Workforce Matters Special Issue 45, including detailed guidance and practical actions in the Members' Resource Area.
Contact the Employment Affairs team for tailored advice: employment.affairs@thebesa.com.
Not yet a member? Find out more about joining BESA and how we can support your business.
Preparing now will help ensure your business remains compliant, protected, and ready for the changes ahead.