New Laws and Regulations Coming This April

 

April is always a key month for legislative and regulatory updates in the UK. This year is no different. Several important changes are coming into force that will directly affect how businesses manage people, payroll, compliance and reporting.

For business owners, leaders and HR teams, the priority is simple: Understand what is changing, know when it starts, and prepare your systems and policies in advance.

Here are six of the most impactful law and regulatory changes coming into effect this April and what they mean for your organisation.

 

1. Statutory Sick Pay reform under the Employment Rights Act 2025

From April 6th 2026, Statutory Sick Pay becomes payable from day one of absence. The previous three-day waiting period is removed. The Lower Earnings Limit is also removed, meaning more workers will qualify for SSP. Payments will be calculated as the lower of 80 percent of weekly earnings or the statutory rate.

What this means for businesses

More employees will be eligible for sick pay, and it will be payable earlier. This is likely to increase payroll costs and may change how absence is managed across teams.

How business should prepare

  • Update absence and sick pay policies

  • Adjust payroll systems to reflect new calculations

  • Brief managers on the changes so they handle absences correctly from day one

 

2. Day one rights for paternity and parental leave

Paternity leave and unpaid parental leave become day one rights as of 6th April 2026. Employees will no longer need a qualifying length of service to access these entitlements.

What this means for businesses

New starters will be entitled to these forms of leave immediately. HR teams and managers must be ready to handle requests from employees who have only recently joined the organisation.

How to prepare

  • Update family leave and parental leave policies

  • Ensure contracts and staff handbooks reflect the new entitlements

  • Train managers to understand eligibility from the first day of employment

 

3. National Minimum Wage and statutory pay rate increases

From early April, the Government will introduce increases to the National Minimum Wage and National Living Wage, alongside rises to statutory payment rates for maternity, paternity, adoption and bereavement leave. These updates are aligned with the start of the new tax year and apply across all eligible workers and employees.

What this means for businesses

These changes will directly affect payroll costs, particularly for organisations with large numbers of employees paid at or near minimum wage levels. Businesses may also find that existing pay structures become compressed, where the gap between entry level roles and more senior positions narrows.

How to prepare

  • Update payroll systems with new rates

  • Review salary bands and pay structures

  • Communicate changes clearly to employees where appropriate

 

4. Launch of the Fair Work Agency

From April, a new enforcement body begins operating to oversee and enforce employment rights. The agency will have powers to investigate issues such as minimum wage compliance, sick pay, holiday pay and general worker rights.

What this means for businesses

There will be greater scrutiny of employment practices. Non-compliance is more likely to be identified through proactive investigation rather than employee complaints alone.

How to prepare

  • Carry out an internal audit of employment policies and practices

  • Check compliance with minimum wage, holiday pay and sick pay rules

  • Ensure documentation is accurate and up to date

 

5. Making Tax Digital for Income Tax under HM Revenue and Customs

From 6th April, sole traders and landlords with qualifying income must begin keeping digital records and submitting quarterly updates to HMRC under Making Tax Digital for Income Tax.

What this means for businesses

Any organisation operating as a sole trader, or individuals within the business who fall into scope, must move to compliant digital record keeping and reporting. This increases the importance of accurate, real time financial records.

How to prepare

  • Choose HMRC compliant accounting software

  • Train finance teams or responsible individuals on quarterly reporting requirements

  • Move away from manual or spreadsheet-based record keeping


 6. Whistleblowing protections expanded for sexual harassment disclosures

From April, disclosures relating to an employer’s failure to prevent sexual harassment will qualify for whistleblowing protection. Workers will be able to raise concerns without needing to prove that a specific legal breach has already occurred.

This expands the scope of protected disclosures and strengthens the legal position of workers who speak up about workplace culture, behaviour and safeguarding concerns.

What this means for businesses

This change increases the importance of having clear, trusted reporting procedures in place. Employees who feel that sexual harassment risks are not being properly managed can raise concerns under whistleblowing protection, which carries significant legal safeguards for the individual.

How to prepare

  • Update whistleblowing and anti-harassment policies to reflect the change

  • Ensure there are clear, confidential reporting channels available to staff

  • Train managers on how to handle disclosures correctly

  • Review workplace culture and preventative measures relating to harassment

  • Keep accurate records of how concerns are reported and addressed


These changes affect payroll, HR policies, compliance procedures and financial reporting. They are not optional updates. They require action to avoid disruption and risk.

For many businesses, the challenge is not understanding the law. It is making sure systems, documentation and managers are ready when the changes take effect.

Taking time now to review policies, update systems and train staff will ensure your organisation stays compliant, avoids penalties and continues to operate smoothly as the new financial year begins.

 
Jacob Porter