Employment Law Changes in 2026: What Employers Need to Prepare for Now

Several important employment law changes are expected to take effect in April 2026, and businesses should begin preparing now to ensure compliance and minimise disruption.

These updates aim to strengthen worker protections, improve labour market oversight and ensure fair pay across workplaces. For employers, this means reviewing policies, payroll systems and recruitment processes well in advance of the changes.

Below are some of the key areas businesses should be aware of.

Broader Access to Statutory Sick Pay

One of the most significant updates is the expected expansion of Statutory Sick Pay (SSP) eligibility.

More workers may qualify for sick pay under the updated rules, which means employers will need to review their payroll processes and absence management procedures. Clear and consistent sickness reporting systems will be important to ensure businesses remain compliant.

Organisations should also ensure managers understand the updated requirements and that internal policies reflect the new rules.

Day-One Family Leave Rights

Another change expected in 2026 is the introduction of day-one rights to certain family-related leave.

Currently, some leave entitlements require employees to complete a qualifying period. Under the proposed changes, workers may be able to access these rights from the start of employment.

For employers, this means reviewing absence policies and preparing for the possibility of short-notice family leave requests, particularly during busy operational periods.

Greater Protection for Umbrella Workers

New legislation is also expected to strengthen protections for workers paid through umbrella companies.

This will likely introduce greater transparency around pay arrangements and worker rights. Businesses that rely on temporary labour or contract workers should review their current agreements and payment structures to ensure they meet the updated standards.

Working with reputable recruitment partners will be increasingly important to ensure compliance across the supply chain.

Increased Employment Oversight

The government also plans to introduce a new enforcement body responsible for monitoring labour standards.

This body will have stronger powers to oversee employment practices and ensure businesses comply with regulations relating to worker rights, pay and employment conditions.

As a result, organisations should ensure their documentation, employment processes and recruitment partners meet the required compliance standards.

Minimum Wage Updates

Changes to National Minimum Wage rates are also expected as part of the wider employment law updates.

Employers will need to review payroll systems and pay structures to ensure workers are paid correctly according to the updated rates. Regular wage audits can help businesses avoid compliance risks and maintain fair pay practices.

Preparing Your Workforce for Employment Law Changes

Preparing early for employment law changes helps businesses stay compliant while maintaining operational stability.

Key steps employers can take now include:

  • Reviewing internal HR policies and procedures

  • Checking payroll systems and wage structures

  • Updating absence and sick pay policies

  • Reviewing contracts with recruitment partners

  • Ensuring documentation and compliance processes are up to date

How Cogent Staffing Supports Employers

We work closely with businesses to help them adapt to changing workplace regulations while maintaining a reliable workforce.

Our recruitment and workforce solutions support organisations by providing:

  • Flexible staffing to manage workload changes

  • Access to skilled temporary and permanent workers

  • Recruitment support aligned with current employment regulations

As employment law continues to evolve, having the right recruitment partner can help businesses stay compliant and prepared.