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Posted: Tue 10th Feb 2026
5 min read
The government has published detailed guidance on employment law changes coming into force from April 2026.
If you employ staff, here's what matters for your business and what you need to do now.
Throughout, you'll find expert guidance from HR consultant and Enterprise Nation adviser Farzana Parkar, who works with Face2Face HR in North London. She says:
"The first thing to remember is that it's not something that's going to be introduced with a big bang in April and suddenly businesses are expected to comply.
"It's going to be a staggered process over 18 months from April.
“That said, it's always wise to prepare in advance as much as possible."
From 6 April, statutory sick pay (SSP) becomes more generous.
The three-day waiting period disappears and the earnings threshold goes. This means you'll pay SSP from day one of sickness for all employees, regardless of how much they earn.
Check your payroll software handles this, and update any sickness policies or employment contracts issued after 6 April.
Farzana says:
"My tip here is to make sure that your sick pay policy, especially the procedure, is very, very robust.
"Because the first seven days are self-certified, meaning an employee doesn't need to provide a fit note.
"With more generous entitlements, businesses need watertight processes to prevent abuse while supporting genuinely ill employees."
On the same date, day-one paternity and unpaid parental leave also comes into effect.
Employees can now take paternity leave and unpaid parental leave from their first day with you, not after 26 weeks.
Employees can give notice from 18 February 2026, so expect requests before April if you have staff expecting children. Update your policies now and brief managers.
A new bereaved partner's paternity leave also starts, giving bereaved fathers and partners up to 52 weeks if the mother or primary adopter dies within the child's first year.
If you ever need to make 20 or more redundancies within 90 days, the maximum protective award for failing to consult properly doubles from 90 to 180 days' pay from April.
In October, new sexual harassment duties kick in.
You'll need to take "all reasonable steps" to prevent employees being sexually harassed. You'll also be liable for harassment by third parties (like customers or clients), unless you've taken all reasonable steps to prevent it.
Start assessing the risks now and update your policies wherever necessary.
Farzana says:
"Sexual harassment disclosures become protected whistleblowing acts.
"I see this as a natural extension of legislation introduced last year requiring businesses to protect employees from client harassment, particularly in entertainment and hospitality sectors where client events are common."
The unfair dismissal qualifying period drops from two years to six months, and the compensation cap is removed.
This changes how you manage probation. Tighter performance reviews at months three and five become essential.
Farzana says:
"There's a critical detail here that many businesses might miss.
"Anyone you hire from 1 July 2026 will automatically have unfair dismissal rights in January 2027 when the rights come in. It's not that businesses have until January – it's from July."
"That means anyone you hire from 1 July 2026 will be able to claim unfair dismissal from January 2027, having accrued six months' service.
"As such, you should tighten up your recruitment, onboarding, probation reviews and early performance management now. You don't need to wait until January to do it – do it now."
Fire and rehire protections also arrive in January. Dismissing someone and rehiring them on worse terms will automatically be considered unfair dismissal in most cases, particularly where there are changes to pay, pensions or benefits.
We asked Enterprise Nation advisers Rona Loweth and Belinda Mangena to help us work through the new legislation on a practical level – and help to get over any myths and misunderstandings.
Rona's main message to all small business owners is not to panic! Read her insights into how to prepare your small business for the Employment Rights Bill overhaul.
Belinda says:
"We're currently advising our clients to comprehensively audit their existing contracts and handbooks to make sure they're ready for the significant shift toward day-one rights.
"It's crucial that small businesses review their recruitment and onboarding processes now, as the removal of the qualifying period for unfair dismissal means that performance management and cultural fit must be assessed more effectively from the very beginning."
Here are her top tips on preparing for the new legal changes.
Review probation processes: The six-month window is the new norm. Make sure your probation periods, review processes and documentation are robust and legally sound.
Update policies: Revise your employee handbook to reflect the new rights, including day-one sick pay and enhanced parental leave protections, coming in April 2026.
Train managers: Provide training on how to handle probation fairly, give constructive feedback and properly document performance issues.
Secure HR support: Because these changes are somewhat complicated, make sure you have reliable HR support, whether in-house or through a consultant. That way, you'll avoid any costly mistakes that come with failing to keep to the law.
The Fair Work Agency launches on 7 April 2026 to enforce employment rights. If you're not keeping to the law, it's more likely you'll face penalties.
Start with the immediate changes, like SSP and the family leave policies.
Then plan for January's unfair dismissal shift. Acas has published free guidance and webinars on the changes. The government's dedicated website has timelines and action points for each measure.
Most of these changes won't transform how you run your business, but they do tighten compliance. The ones that matter, SSP and unfair dismissal protections, need action in the next eight weeks.
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