From 6 April 2026:
- Paternity leave and parental leave become a day 1 right.
- SSP is payable from the first day of sickness absence and the lower earnings limit is removed.
- New right to bereaved partner’s paternity leave (BPPL) comes into force.
- New duty for employers to keep holiday leave and pay records.
- Protective award for collective redundancy consultation has doubled.
From 7 April 2026:
- Establishment of Fair Work Agency
New statutory rates for 2026
April also marks the month each year where changes to statutory rates come into force. Many rate changes take effect from 6th April (to align with the start of the new tax year).
The statutory rates for family leave, sick pay, redundancy and the cap on unfair dismissal compensatory awards are, from 6th April 2026, as follows:
| Statutory maternity, paternity, shared parental, adoption, parental bereavement, neonatal care leave pay | £194.32 per week |
| Statutory sick pay | £123.25 per week |
| Statutory guarantee pay | £41 per day |
| Statutory redundancy pay | £751 per week |
| Maximum compensatory award for unfair dismissal (see below – increase and then removal) | £123,543 |
These amounts are the minimum legal requirements. You could replace these with higher payments if you choose to offer more voluntarily, or if you must do so as part of the employee’s contract of employment.
The average gross weekly earnings required to qualify for the various forms of family leave pay will also increase from £125.00 or more per week, to £129.00 or more per week from 6th April 2026.
Compensatory award cap – increase and then removal
From 6 April 2026 onwards, the maximum compensatory award for unfair dismissal will increase to £123,543.
Due from January 2027 onwards, changes brought about by the Employment Rights Act 2025 mean that the cap on the compensatory award will be completely removed.
So from 6th April 2026 until January 2027, employees could win a maximum award of up to £123,543 for unfair dismissal claims – and from then onwards this award will be uncapped.
Further reading:
- Employment Rights Act 2025 Roadmap – Hunter Law
- Employment Rights Act 2025 – Imminent employment law changes – Hunter Law
- Employment Rights Act 2025 – www.gov.uk
- Employment Rights Act – Prep for April – Hunter Law
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