Key Highlights
- New employment laws for 2026 include significant changes to sick pay and family leave.
- The National Living Wage will rise by 4.1% in April 2026, impacting millions of workers.
- A tax relief for home workers is being scrapped from April 6th, affecting around 300,000 people.
- Fire and rehire practices are banned, with enhanced protections against workplace harassment introduced in October 2026.
New Employment Laws: What You Need to Know for 2026
The new employment laws set to come into effect across the UK in 2026 are a significant overhaul of workers’ rights and protections. These changes, introduced through the Employment Rights Bill, will affect countless individuals and businesses alike, marking a substantial shift in workplace dynamics.
Strengthened Sick Pay and Family Leave
The first wave of new measures, coming into effect from April 2026, aims to bolster fundamental rights for all workers. Among the key changes is the removal of the three-day waiting period for Statutory Sick Pay (SSP), ensuring that employees are eligible from day one on their job. The lower earnings limit will also be lifted, making sick pay accessible regardless of income.
Additionally, both paternity leave and unpaid parental leave will become immediate rights, removing previous service requirements.
The government is also increasing the statutory family pay rates to £194.32 per week for maternity, paternity, and adoption leaves. These measures are part of a broader effort to consolidate existing agencies into the Fair Work Agency, tasked with enforcing core employment rights, including unfair dismissal and holiday pay.
Minimum Wage Hike
In tandem with these new entitlements, the government is raising minimum wages in April 2026. The National Living Wage will see a notable increase to £12.71 per hour for those aged 21 and over, up by 50p from its current rate. For workers aged between 18 and 20, the wage will rise to £10.85, an increase of 85p, while those aged 16 and 17 will earn £8 per hour.
This adjustment is expected to provide a real-terms pay rise for low-paid workers, bringing them closer in line with the National Living Wage standards. The new rates are set to benefit millions of employees across the UK, reflecting a commitment to equitable wage growth and economic stability.
End to Tax Relief for Home Workers
A significant change coming into effect from April 6th is the scrapping of tax relief for home workers. Currently, some employees can claim deductions on income tax for additional household costs associated with working from home—such as higher bills and business telephone calls. This relief will no longer be available, impacting around 300,000 people who are expected to face a tax increase ranging from £62 for basic rate taxpayers to £124 for higher rate taxpayers.
This decision reflects the government’s broader strategy to streamline taxation and ensure fairer distribution of financial benefits. However, it has sparked debate over the practical implications for workers and businesses alike, as some argue that working from home can significantly impact productivity and efficiency.
Enhanced Workplace Protections
The second phase of changes, due in October 2026, will address significant workplace practices and discrimination issues. “Fire and rehire” practices—where employers dismiss employees to bring them back on inferior terms—will be banned. In most cases, such actions will be deemed automatically unfair, though there are some narrow circumstances where it remains acceptable.
Employers will have a new legal duty to prevent sexual harassment in the workplace and become liable for harassment by third parties. This change is part of a broader push towards creating safer working environments and ensuring that all employees feel valued and protected.
The government is also tightening tipping laws, requiring consultation with staff when creating or reviewing policies, which must be updated every three years.
Enhanced rights for trade unions will include duties for employers to inform workers about their right to join a union and new rights for representatives to access workplaces and have paid time off for equality duties.
The introduction of these measures underscores the government’s commitment to fairer employment practices and stronger worker protections. As these changes are implemented over two years, businesses and employees alike will need to adapt to ensure compliance with the evolving legal landscape.
These new laws represent a significant step forward in creating more equitable and supportive working conditions for all UK workers. While they come with challenges, particularly around financial impacts and workplace culture shifts, the ultimate goal is to foster an environment where both employers and employees can thrive.
