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Employment Update for Small Businesses
April 2026

Dear Subscriber

This month sees the introduction of a number of important employment law changes under the new Employment Rights Act 2025. The most significant in our opinion being the change to Statutory Sick Pay. Read on to find out why.
Please contact me if you would like to find out a bit more about any of the subjects raised in this update or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.

Regards
Peter Etherington
Tel: 01664 668164

www.etherington.co.uk

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Peter Etherington
Statutory Sick Pay Change
Transitional Arrangements
From 6th April 2026, anyone who goes off sick will be entitled to Statutory Sick Pay (SSP) from the first day of sickness absence.  So even if they have just one day’s sickness, that day will be paid as SSP.  Currently a worker is only entitled to SSP if they are off sick for four days in a row or longer, with payment starting on day four.

But what happens if someone goes off sick on, say, 3rd or 4th April? The answer is that the old arrangement still applies – they still only start to receive SSP on the fourth day of absence even if that falls after 6th April. The new regime only applies if the worker falls sick on or after 6th April.

Also, don’t forget that there will no longer be an earnings threshold. From 6th April, payment of SSP is at the weekly level of £123.50 or 80% of normal pay if lower.

Please note that SSP is a weekly amount. If someone who normally works 5 days per week has one day off sick, they will be paid one fifth of that amount (£24.70). Whereas someone who normally works 3 days per week would be paid one third of the weekly amount for a day’s sickness (£41.17).

We believe this change may lead to a higher level of sickness, particularly from lower paid workers, so it will be more important than ever to monitor and manage attendance effectively.

Employment Rights Act 2025
More changes that apply in April 2026
As previously reported, there are some other employment law changes that have come into effect from today (1st April), including:

Paternity Leave – is now a day one right (although workers still need 26 weeks’ service to qualify for Statutory Paternity Pay)

Bereaved Partner’s Paternity Leave – a new entitlement to up to 52 weeks’ unpaid time off in circumstances where the mother/primary adopter dies shortly after the birth or adoption

Unpaid Parental Leave – is now a day one right (previously one year’s service was required)

Whistle Blowing – sexual harassment is now defined as a qualifying disclosure for the purposes of whistle blowing protection

National Minimum and Living Wage
National Living Wage and National Minimum Wage rates have increased from 1st April 2026 as follows:

  • from £12.21 to £12.71 per hour for workers aged 21 and over
  • from £10.00 to £10.85 per hour for workers aged 18 to 20
  • from £7.55 to £8.00 per hour for workers aged 16 and 17, and for apprentices under 19 and those over 19 in their first year*

*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age

www.etherington.co.uk