February HR News

Welcome to your end-of-February HR & Employment Law round-up. This month we cover the upcoming Employment Rights Act changes landing in April, the new statutory rates taking effect from 1 April 2026, plus some exciting news from our partners Breathe HR and hireful.

1. Employment Rights Act April 2026 Changes

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and represents the biggest shake-up to UK employment law in a generation. Changes are being phased in throughout 2026 and 2027. Here is what you need to have on your radar for April 2026:

Statutory Sick Pay Reform

From 6 April 2026, SSP becomes more accessible for employees. The lower earnings limit (currently £123 per week) is being removed entirely, meaning more employees will qualify. Crucially, the three-day waiting period is also abolished and SSP will be payable from day one of absence. This will have a cost impact for employers, so now is the time to review your sick pay policies and budget accordingly.

Day One Rights: Paternity Leave & Unpaid Parental Leave

Both paternity leave and unpaid parental leave will become day-one rights from 6 April 2026. Previously, employees needed 26 weeks' service for paternity leave and 1 year's service for unpaid parental leave. Employees eligible for leave from 6 April have been able to give notice since 18 February 2026.

Action: Update your paternity leave and parental leave policies now to reflect these changes.

Whistleblowing: Sexual Harassment as Protected Disclosure

From 6 April 2026, disclosures about sexual harassment will be explicitly classified as 'qualifying disclosures' under whistleblowing law. This means employees making such disclosures will gain protection against detriment and unfair dismissal as whistleblowers.

Trade Union Recognition Simplification

The process for trade unions to apply for recognition in workplaces will be simplified from April 2026, ahead of wider reforms coming in October. Employers should review their employee engagement strategies and consider whether employee forums are in place.

Gender Pay Gap & Menopause Action Plans (Voluntary)

From 6 April 2026, employers are encouraged to produce voluntary action plans around gender equality and supporting employees through the menopause. These are expected to become mandatory in 2027, so getting ahead now is good practice.

Action: If you would like support implementing these, either now or looking ahead into 2027, get in touch to see how we can help.

The Fair Work Agency

A new Fair Work Agency will be established from 7 April 2026. It will oversee compliance with national minimum wage, statutory sick pay, and holiday pay requirements. Although it will not begin exercising full enforcement powers immediately, employers should be aware of this new body.

Looking Ahead: Key Dates Beyond April

Not everything lands in April. Here is a brief overview of what is coming later:

• October 2026: Fire and rehire restrictions (dismissing and rehiring on worse terms) will face significant new limitations. Extended Employment Tribunal time limits from 3 to 6 months are also expected no earlier than October 2026.

• January 2027: The qualifying period for unfair dismissal claims reduces from 2 years to just 6 months. The statutory cap on compensatory awards will also be removed. Any employees you hire from July 2026 onwards will be the first to benefit from the new 6-month rule.

• 2027: Zero-hours contract reforms will require employers to offer guaranteed hours based on average hours worked, and give workers rights to reasonable shift notice and compensation for late cancellations.

2. Statutory Rate Increases

1st April always marks the annual increase in statutory payments. Employers need to update payroll systems to reflect new rates for:

National Minimum Wage (21+) £12.71 per hour

NMW — 18 to 20 year olds £10.85 per hour

NMW — 16 to 17 year olds & Apprentices £8.00 per hour

Accommodation Offset £11.10 per day

Statutory Sick Pay (SSP) £123.25 per week

Statutory Maternity/Adoption/Shared Parental Pay £194.32 per week

Lower Earnings Limit Threshold £129 per week

It is crucial to communicate these changes to your finance or payroll teams immediately to avoid underpayment issues in the April payroll run.

Exclusive Software Offers

We have secured some fantastic deals for our clients to help streamline your HR and recruitment processes as we head into spring.

Breathe HR Special Offer

If you are not yet using Breathe HR to manage your people, now is a great time to make the switch. Breathe is an easy-to-use HR software platform designed specifically for SMEs, helping you manage everything from leave and absence to performance and documents — all in one place.

If you are looking to digitise your employee data, manage holidays, and handle sickness absence more efficiently, now is the perfect time to join Breathe HR.

Micro-Businesses (1-4 Employees)

Get 50% off Breathe for the whole year. This is an ideal way to start professionalising your HR admin from day one without breaking the bank.

Larger Organisations (5+ Employees)

Sign up before 31st March and choose from:

• 50% off your subscription for the first 6 months.

• OR get a significantly reduced rate on the additional "Learn" or "H&S" modules to boost training and compliance.

Hireful ATS Update

We are also excited to announce an upgrade to our recruitment support.

Every recruitment package now includes access to the Hireful Applicant Tracking System (ATS).

This means no more lost CVs in email inboxes. You get a fully GDPR-compliant system to track candidates, schedule interviews, and manage feedback—all included as standard with our recruitment services.

With the Employment Rights Act 2025 set to reduce the unfair dismissal qualifying period to just six months from January 2027, getting recruitment right matters more than ever. Poor hiring decisions will carry greater risk, so having a robust, structured recruitment process supported by good technology is increasingly important.

February Checklist

💰 Check Payroll

Confirm your payroll provider is ready with the new April rates for NMW and statutory pay.

🖥️ Upgrade Systems

Take advantage of the Breathe HR offer before 31st March to lock in savings.

📝 Update Policies

Review Flexible Working and Carer's Leave policies before the April legislation hits.

🤝 Recruitment

Ask us about our new packages including Hireful ATS to professionalise your hiring.