April 2026 brings one of the most significant packages of employment law reform in recent years. For business owners, the changes aren’t just an HR administration task; they affect payroll costs, compliance exposure, and in some cases, the value and saleability of your business. Here’s what’s changed, and what you should be doing about it.
From 6 April 2026, both Paternity Leave and Ordinary Parental Leave become day one rights. Qualifying periods have been removed entirely. Employees can take this leave from their first day in post, which has direct implications for workforce planning and cost forecasting, particularly in businesses with high staff turnover or seasonal hiring.
Also from 6 April, SSP is now payable from the first day of sickness; the three-day waiting period is gone. For businesses where absence is already a challenge, this change increases the cost of every short-term sickness episode. In labour-intensive sectors, such as retail, food service, care, and manufacturing, this will be felt quickly.
The new rates are:
For businesses with significant numbers of lower-paid staff, this isn’t a marginal shift. Combined with the SSP and parental leave changes, the total employment cost increase for some operators will be material.
The weekly rate for statutory maternity, adoption, paternity, shared parental, neonatal and parental bereavement pay rises to £194.32, with SSP increasing to £123.25 per week. The statutory redundancy weekly pay cap has also increased, moving from £719 to £751 per week; relevant to anyone calculating redundancy payments or tribunal basic awards.
From 6 April, the compensation for failing to properly consult employees in a collective redundancy situation has doubled from 90 to 180 days’ pay per affected employee. This is a significant increase in exposure for any business that has carried out, or is planning, a restructure. If consultation wasn’t handled correctly in the past, that’s a potential liability that due diligence will surface.
From 7 April, a new enforcement body is operational and empowered to inspect employers and issue fines of up to 200% of unpaid wages. The message here is clear: compliance isn’t optional, and enforcement will be more active going forward.
From 6 April, unions only need 10% membership in a bargaining unit to apply for recognition. Combined with the earlier removal of the support threshold rule (from February 2026), organising trade union recognition has become structurally easier. Businesses that haven’t considered their employee relations exposure should be aware of the changed landscape.
From 6 April, reporting sexual harassment now qualifies for whistleblowing protection, adding a new category to an already complex area of employment law.
Scotland has been granted an additional bank holiday on Monday 15 June 2026 – much to the delight of our Scottish team! The day has been granted to allow football fans to watch Scotland play in the World Cup. Employers in Scotland need to review contracts and existing bank holiday entitlements now to understand how this applies to their workforce and what, if any, additional cost or operational adjustment is required.
Employment compliance is one of the areas buyers scrutinise most closely during due diligence. Outdated contracts, unresolved redundancy processes, or wage underpayments don’t just create legal risk, they create negotiating leverage for the other side.
A few specific points worth considering:
Review and update your employment contracts and handbook: If your documentation hasn’t been updated to reflect the April 2026 changes, address that now. Outdated policies signal a business that hasn’t been actively managed; not what you want going into a sale process.
Recalculate your payroll costs under the new rates: Understand what the NMW increases, day one SSP, and revised statutory payment rates mean for your margins. If you’re preparing for a sale, your adviser will need accurate normalised cost figures.
Audit any historic redundancy processes: With the Protective Award doubled, any redundancy situation that wasn’t properly consulted on is carrying more financial exposure than it was six months ago. If there’s a question mark, take legal advice now rather than having it surface in a buyer’s due diligence.
Seek specialist employment law or HR support: The April changes are broad and some have nuances that depend on your specific workforce, sector, and contracts. A specialist will be able to assess your specific exposure and help you get ahead of any issues.
If you’re in Scotland, review bank holiday provisions: Check what your contracts say about bank holidays and understand the operational and cost implications of the 15 June additional day before it arrives.
The April 2026 employment law changes add to what is already a challenging cost environment for UK businesses. Managing them properly isn’t just about compliance; it’s about protecting your margins, reducing your risk exposure, and making sure your business is as well-positioned as it can be, whether that’s for continued growth or for a future sale.
At Business Partnership, we work with business owners across the UK on exit planning, valuations, and preparing businesses for market. If you’re considering a sale and want to understand how changes like these affect your position, we’re happy to have that conversation.
This article is provided for general informational purposes only and does not constitute financial, legal, employment, or investment advice. Every business operates under unique circumstances, and decisions should be made only after taking appropriate professional advice tailored to your specific situation. Business Partnership accepts no liability for actions taken or not taken based on the content of this publication.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.