Day one employment rights are now law, and many businesses are not ready
On 7 April 2026, the UK Department for Business and Trade clarified the functioning of landmark employment reforms that came into force on 6 April 2026. From that date, statutory sick pay applies from the first day of sickness absence, with previous waiting-period requirements removed. Employees also gained day one rights to paternity leave and unpaid parental leave, eliminating minimum service thresholds entirely. These reforms apply regardless of employee earnings or length of service. A new Fair Work Agency also launched on 7 April 2026, consolidating enforcement functions to support effective application of employment rights.
The creation of a dedicated enforcement agency – the Fair Work Agency – is the detail most CEOs are missing. This is not merely a policy change; it signals a structural commitment to proactive enforcement of employment rights. Businesses whose contracts, HR policies, and payroll systems have not been updated to reflect these changes are already in breach.
Gender pay gap reporting now requires an action plan – Not just data
On 7 April 2026, the UK Government Equalities Office updated its gender pay gap reporting guidance for employers, revising key sections to link to newly published guidance on creating a gender pay gap action plan for employers with 250 or more employees. The update directs employers to additional guidance explaining how to develop, submit and publish an action plan alongside their gender pay gap data, including step-by-step information on understanding pay gap issues, selecting actions, writing a supporting narrative and submitting an action plan through the gender pay gap service.
The obligation is no longer simply to publish data – it now extends to explaining what you are doing about it. For large employers, this is a material change to the compliance burden, and one that carries reputational risk if the action plan does not stand up to scrutiny from employees, investors, or the media.
The NDA landscape in employment is being fundamentally redrawn
On 15 April 2026, the UK Department for Business and Trade launched a public consultation on proposed regulations to prevent the misuse of non-disclosure agreements in cases of workplace harassment and discrimination. The consultation follows provisions introduced under the Employment Rights Act 2025, which void confidentiality clauses that prevent workers from speaking about relevant harassment or discrimination. The government is seeking views on the conditions under which an NDA may still be valid, including where it is requested by the worker and independent advice has been received, and proposes clarifying permitted disclosures and expanding the scope of individuals covered.
For businesses that routinely use NDAs in employment settlement agreements, this is a major compliance signal. Standard NDA templates that have been in use for years may now be unenforceable in certain circumstances. Legal and HR teams need to review their standard settlement documents before this consultation closes and final regulations are made.
Collective redundancy liability has doubled overnight
On 20 April 2026, the UK Insolvency Service updated its Technical Guidance for Official Receivers, increasing the maximum protective award period from 90 to 180 days. A protective award is Employment Tribunal-ordered compensation payable where employers fail to properly consult before collective redundancies. The doubled cap applies to affected employees and is relevant both in standard employment contexts and within insolvency proceedings.
Most businesses are unaware that this change has already taken effect. Any organisation that has recently undertaken or is planning collective redundancies needs to reassess its consultation obligations and financial exposure immediately. The cost of getting this wrong has doubled.
The climate change agreements scheme has expanded, and with it, eligibility and obligations
On 20 April 2026, HMRC published policy amendments to the Climate Change Agreements scheme, extending eligibility to additional sectors and processes, including automotive battery cell production, spirits packaging and mechanical recycling of plastics. The amendments also updated the calculation of the gas carbon emissions factor used in determining Climate Change Agreement buy-out fees, so that it reflects both carbon and carbon equivalent emissions.
For businesses in newly eligible sectors, this creates both an opportunity – access to reduced Climate Change Levy rates – and an obligation to understand and meet the associated energy or emissions targets. Businesses that are unaware of their eligibility may be forgoing significant financial benefit, while those already in the scheme need to recalculate their cost exposure under the updated emissions factor.
This content has been prepared based on regulatory and legislative updates identified across UK and EU jurisdictions as of April 2026. It is intended for awareness purposes and does not constitute legal advice.
Take a look at last month’s article: What CEOs are not seeing yet: The hidden regulatory risks building across the UK & EU | DWF Group
