Last updated: 16 October 2026
What employment rights changed recently?
UK employment law has changed a lot since 2024, and more changes are coming under the Employment Rights Act 2025. Small businesses need to update contracts, handbooks and payroll settings. Below are the main changes and what they mean in practice.
Changes already in force
| From | Change |
| 6 April 2024 | Flexible working became a day-one right, with two requests a year and a two-month decision period |
| 6 April 2024 | Carer’s leave: one week of unpaid leave a year for employees caring for a dependant |
| 6 April 2024 | Extra redundancy protection for pregnant employees and new parents, lasting up to 18 months after birth |
| 26 October 2024 | Employers must take reasonable steps to prevent sexual harassment at work |
| 6 April 2026 | Statutory Sick Pay from the first day of sickness, with the lower earnings limit removed; paid at £123.25 a week or 80% of average weekly earnings if lower |
| 6 April 2026 | Paternity leave and unpaid parental leave became day-one rights |
What this means for payroll
- SSP: there are no waiting days, so an employee off sick for two days is due two days of SSP. Low earners now qualify, at 80% of their average weekly earnings if that is less than the flat rate.
- Family pay: Statutory Paternity Pay is £194.32 a week (or 90% of earnings if lower) from April 2026. Eligibility for statutory pay still depends on 26 weeks’ service and earnings tests, even though leave is a day-one right.
- Records: keep clear records of leave requests and decisions, as tribunals expect them.
Changes planned for later
The Employment Rights Act 2025 also brings:
- a new Fair Work Agency to enforce holiday pay, minimum wage and SSP rights
- limits on “fire and rehire” practices
- new rights on zero-hours contracts, including guaranteed hours offers
- a shorter qualifying period for unfair dismissal: six months instead of two years from 1 January 2027, as confirmed in government guidance, so employees with six months’ service on that date are protected straight away
Dates can change as regulations are made, so check before relying on them.
Example
A café with eight staff has an employee who joins on 1 May 2026 and becomes a father in June. He can take two weeks’ paternity leave straight away. He will not get Statutory Paternity Pay because he has not worked there 26 weeks, but his job is protected while he is on leave.
A checklist for small employers
- Update contracts and the staff handbook.
2. Check your payroll software handles day-one SSP.
3. Train managers on flexible working requests.
4. Review your harassment prevention policy and training.
5. Budget for higher sick pay costs.
Holiday pay for irregular hours
Since April 2024, holiday for irregular-hours and part-year workers can be worked out as 12.07% of hours worked in each pay period, and rolled-up holiday pay is allowed for these workers. Check that your payroll settings match the contract.
Frequently asked questions
Can I still refuse a flexible working request?
Yes, for one of eight business reasons, after consulting the employee.
Can small employers reclaim SSP?
No. The SSP rebate scheme ended in 2022.
Is carer’s leave paid?
No, it is unpaid unless your contract says otherwise.
Do these rights apply to workers as well as employees?
Some do, such as the minimum wage and holiday pay. Leave rights generally apply to employees.
Related: important employment law changes, paternity leave help and paying SSP to a new employee.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with employment law changes and payroll. See our payroll services service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
