Keeping Annual Leave Records
From 6 April 2026, employers must keep adequate records showing compliance with statutory annual leave rules. These records must be retained for six years
Your records must include:
- Annual leave entitlement (ordinary and additional)
- Leave taken, including any carried‑over leave
- Holiday pay calculations, including which pay elements were included/excluded (e.g., overtime, commission, bonuses)
- Payments in lieu of leave on termination, including carried‑over leave
- Entitlements for irregular hours and part‑year workers, where classification is especially important
National Minimum Wage (NMW) Increases-1 April 2026
From 1 April, all NMW bands rise, including the National Living Wage. For many employers, this will be the single biggest cost increase of the year.
New rates:
- National Living Wage (21+): £12.71
- 18–20 rate: £10.85
- 16–17 rate: £8.00
- Apprentice rate: £8.00
Statutory Sick Pay (SSP)-Day One Right from 6 April 2026
This is one of the most impactful reforms taking effect in April 2026. SSP will become payable from the first full day of sickness, removing the long‑standing three‑day waiting period. The lower earnings limit is abolished, meaning many more workers will now qualify for SSP for the first time.
From 6 April 2026, SSP will be paid at £123.25 per week or 80% of the worker’s usual weekly earnings, whichever is lower. This introduces a proportional element for lower‑paid or part‑time workers, aligning SSP more closely with actual earnings patterns.
Employer impact:
- Higher SSP costs
- More short-term absences qualifying
- Increased admin and monitoring requirements
Actions:
- Update sickness policies
- Train managers on early-stage absence management
- Review absence triggers and return-to-work processes
Day One Rights for Paternity Leave & Unpaid Parental Leave-6 April 2026
Employees will now qualify for:
- Statutory Paternity Leave from day one
- Unpaid Parental Leave from day one
Previously, these required 26 weeks’ service and one year’s service respectively.
Important: Statutory paternity pay still requires 26 weeks’ service.
Employer impact:
- New starters may take leave during probation
- Increased need for early workforce planning
- More complex scheduling and cover arrangements
Actions:
- Update family leave policies
- Train managers on eligibility and process
- Ensure payroll understands the difference between leave and pay entitlements
Redundancy: Protective Award Doubles to 180 Days-6 April 2026
Failure to comply with collective consultation obligations will now carry a maximum protective award of 180 days’ pay, up from 90.
Employer impact:
- Significantly higher financial exposure
- Increased scrutiny of consultation processes
- Greater risk in restructures and insolvency scenarios
Actions:
- Review redundancy procedures
- Ensure accurate tracking of proposed dismissals
- Centralise documentation and audit trails
Sexual Harassment Added to Whistleblowing Categories-6 April 2026
Reports of sexual harassment will now qualify as protected disclosures, giving workers enhanced whistleblowing protections.
Employer impact:
- Mishandling complaints could lead to whistleblowing claims
- Increased need for robust anti‑harassment culture and training
Actions:
- Update whistleblowing and dignity at work policies
- Train managers on handling disclosures
- Strengthen investigation processes
Statutory Family-Related Pay Increases-April 2026
From 5 April, statutory rates rise across:
- Maternity
- Paternity
- Adoption
- Shared parental
- Neonatal care
- Parental bereavement pay
New rate: £194.32 per week.
Employer impact:
- Increased payroll costs
- Need for updated payroll systems and employee communications
The Fair Work Agency-New Enforcement Body
A major structural change: the Fair Work Agency will oversee enforcement across multiple employment rights areas, including SSP, NMW, and family leave.
Employer impact:
- More inspections
- More penalties
- More proactive enforcement
Actions:
- Conduct compliance audits
- Ensure policies and processes are up to date
- Document decisions thoroughly
What Employers Should Do Now
1. Update all relevant policies
- Sickness absence
- Family leave
- Redundancy
- Whistleblowing
- Payroll and HR systems
2. Train managers
Most risks arise from line manager decisions. Ensure they understand:
- Day one rights
- SSP changes
- Handling disclosures
- Consultation duties
3. Review workforce planning
Day one rights mean early absences and leave are more likely.
4. Strengthen documentation
With higher enforcement and penalties, audit trails matter more than ever.
Let Peninsula prepare you for the upcoming changes
Legal obligations have been overhauled, and workers’ rights have been reshaped. Whether it’s now or in the future, you’ll need to respond to these changes to ensure compliancy.
Unsure how? Book a free Impact Assessment here for a tailored plan and peace of mind.If you’re feeling overwhelmed and have concerns about what this means for you and your business, we’re here to offer guidance.Peninsula has four decades of HR experience; we blend expertise with empathy to deliver exceptional service.When you partner with us, you’ll get access to 24/7 advice, unlimited support with your documentation, and market-leading HR software.Learn about the full benefits. Book a call today.
Unsure how? Book a free Impact Assessment here for a tailored plan and peace of mind.If you’re feeling overwhelmed and have concerns about what this means for you and your business, we’re here to offer guidance.Peninsula has four decades of HR experience; we blend expertise with empathy to deliver exceptional service.When you partner with us, you’ll get access to 24/7 advice, unlimited support with your documentation, and market-leading HR software.Learn about the full benefits. Book a call today.
