UK Employment Law Updates in 2026

Employment Rights Act 2025 is here!

Introduced in October 2024, the major shake-up to employment rights in the UK has now been passed through parliament. With key changes to be implemented over the next two years, including:

• Day one rights for employees such as SSP and family leave rights
• A new employment law enforcement agency
• Major changes to the rights of workers on zero-hours contracts
• Flexible working will become a "default" for workers

Immigration updates for workers from overseas

Changes to immigration laws will affect employers who wish to hire employees from abroad.

• From December 16th 2025 the ISC is increasing by 32%. This means higher costs for employers sponsoring workers under the Skilled Worker or the Senior or Specialist Worker route.

• Starting January 2026, English language requirements will also change, increasing the requirement to a level B2, equivalent to A-Level.

It's important to stay aware of changes to employment law and immigration requirements in the UK. As an employer you have a responsibility to ensure any job applicants you hire have a right to work in the UK.

Statutory Sick Pay & Employer NIC Updates – April 2025

You are also now required to pay more in both SSP payments and National Insurance contributions.

Changes to rates additionally come with updates to thresholds, which includes:

• NIC employer rates increased from 13.8% to 15%, while the threshold for NICs liability decreased from £9,100 to £5,000 annually.

• SSP increased to £118.75 per week.

• Statutory rates of pay for maternity, paternity, adoption and shared parental pay have increased to £187.18.

Latest Updates - changes starting April 2026

Starting April 2026, the three "waiting days" for SSP will be abolished, and payments will start from day one. The changes will also extend SSP to all workers regardless of earnings. SSP will be paid at a rate of 80% of usual earnings, or the statutory rate, whichever is lower.

Protective Awards Adjustments – January 2025

In 2025 employment tribunals now have the authority to alter protective awards up or down by up to 25%, if employers are found to have unreasonably failed to comply with the statutory Code of Practice relating to dismissal and re-engagement of workers.

Employer responsibilities:

As an employer this does not have a huge impact on the day-to-day running of your business, but you should be aware that compliance with the ACAS Code will ensure you avoid potentially hefty financial penalties.