HR Law monthly employment and pensions updates by Trowers & Hamlins

What's coming in in April?

As well as the usual increase to national minimum wage rates, tribunal awards and statutory payments there are a number of other legislative developments that you need to be aware of. 

1 April: increase in National Minimum Wage rates

On 1 April there's a rise to the hourly rates of the national minimum wage (NMW):

The National Living Wage (NLW) for those aged 21 and over rises from £12.21 to £12.71.

For those aged 18 to 20 the rate rises from £10 to £10.85.

For those aged 16-17 and apprentices the rate rises from £7.55 to £8.00.

5 and 6 April: increase to tribunal awards and statutory payments

The Employment Rights (Increase of Limits) Order 2026 increases compensation limits for certain tribunal awards and other statutory payments from 6 April.  The two most common figures will see:

The limit on a week's pay increase from £719 to £751.

The maximum compensatory award for unfair dismissal increase from £118,223 to £123,543.

Meanwhile the Social Security Benefits Up-rating Order 2026 implements an increase to statutory maternity pay from £187.18 to £194.32 on 5 April.  

From the 6 April, statutory adoption, paternity, shared parental and shared parental bereavement pay will also rise from £184.03 to £194.32 per week.  Statutory sick pay will rise from £118.75 to £123.25 per week.

6 April: Employment Rights Act 2025 – various measures

The cap on protective redundancy awards will increase from 90 days to a maximum of 180 days.

Day one right to paternity leave and unpaid parental leave will be introduced. For more information on these family friendly changes please refer to our bulletin.

Statutory sick pay (SSP) will become a day one entitlement and the lower earnings limit will be removed to make SSP available to all workers.

A new category of protected disclosure relating to sexual harassment will be introduced.

The trade union recognition process will be simplified.

There will be a requirement on employers to keep records relating to annual leave; these will have to be kept for six years from the date that they're made.

6 April: Bereaved partner's paternity leave

This leave is available where the mother or adopter of a child dies in childbirth, or within a year of the birth or adoption. The existing day one right to two weeks' leave will become a right to 52 weeks' leave.

7 April: Employment Rights ACT 2025 - Fair Work Agency

The Fair Work Agency (FWA) will be put in place. The FWA is a single enforcement body for workers' rights. Regulations have been laid to enable the FWA to carry out enforcement actions from 7 April in relation to employment agency rules, gangmaster licensing and labour exploitation. The FWA will also take over enforcement action in relation to the NMW from HMRC, and over time it is also expected to be responsible for the enforcement of holiday pay and statutory sick pay. We don't yet know when these changes will be implemented.

For more details please contact Trowers & Hamlins

Laura Welchew
Partner
t +44 (0)161 838 2152
e [email protected]

Anna Scott
Knowledge Lawyer
t +44 (0)20 7423 8290
e [email protected]