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UPDATED JUNE 2026

UK Employment Law:
Your 2026 Compliance Guide

Current statutory entitlements, Employment Rights Bill changes, and how Grouper, BambooHR's authorised partner for the UK, configures BambooHR to help UK employers stay compliant through significant legislative reform.

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£12.21/hr
National Living Wage (21+)
From April 2025
28 days
Minimum Annual Leave
Including bank holidays
£116.75/wk
Statutory Sick Pay
From April 2025
39 weeks
Statutory Maternity Pay
Maximum paid period

Key Statutory Entitlements

These are the minimum statutory entitlements all UK employees are entitled to. Employment contracts may be more generous but cannot fall below these minimums.

💷
National Living Wage (21+)
£12.21/hr
From April 2025 (reviewed annually)
💷
National Min Wage (18-20)
£10.00/hr
From April 2025
📅
Minimum Annual Leave
28 days
Including bank holidays; 5.6 weeks pro rata
🤒
Statutory Sick Pay
£116.75/wk
From day 4 of illness; up to 28 weeks
👶
Statutory Maternity Pay
39 weeks
90% AWE for 6 wks, then £184.03/wk for 33 wks
👨
Statutory Paternity Pay
1-2 weeks
£184.03 per week (or 90% AWE if lower)
🌿
Shared Parental Leave
Up to 50 wks
37 weeks paid at SPP rate between eligible parents
🤝
Redundancy Pay
0.5-1.5 wks/yr
Based on age and service; capped at £700/wk
📝
Statutory Notice
1 week/yr
Min 1 week; max 12 weeks for 12+ years service
🏛️
Employment Tribunal Time Limit
3 months
From date of dismissal or discriminatory act
✍️
Written Statement
Day one
Employers must issue a written statement of particulars from day one
🔍
Right to Work Check
Required
Before employment begins; civil penalty up to £60,000/worker
⚠️
MAJOR LEGISLATIVE CHANGE IN PROGRESS
The Employment Rights Bill is progressing through Parliament. Implementation dates vary by provision. HR teams should monitor government announcements and update policies and contracts accordingly.

Employment Rights Bill 2025-26: Key Changes

The Employment Rights Bill represents the most significant reform to UK employment law since the Employment Relations Act 1999. Here are the key changes HR teams need to know.

Day-One Right

Unfair Dismissal Protection from Day One

The Employment Rights Bill proposes removing the current 2-year qualifying period for unfair dismissal protection. Employees will be protected from day one of employment. Employers will retain the ability to dismiss during a statutory initial period (probation), but this will need to follow a fair procedure. This is the most significant change to unfair dismissal law since 1999.

Day-One Right

Right to Guaranteed Hours for Irregular Workers

Workers on zero-hours and irregular-hours contracts will have the right to request a contract reflecting their average hours over a reference period. Employers must offer guaranteed hours to eligible workers and cannot require them to remain on zero-hours arrangements if they do not wish to. This does not ban zero-hours contracts but gives workers significantly stronger rights.

Strengthened

Flexible Working Rights Enhanced

The Employment Relations (Flexible Working) Act 2023 already made flexible working a day-one right. The Employment Rights Bill goes further, requiring employers to accept flexible working requests unless they can demonstrate genuine business reasons for refusal, shifting the burden from the employee to justify the request to the employer to justify the refusal.

New Provisions

Bereavement Leave and Enhanced Family Rights

The Bill introduces a statutory right to bereavement leave for all employees, not just those who lose a child (who already had rights under the Parental Bereavement Leave Act 2018). Details of the entitlement are being consulted on. Additional provisions strengthen rights for carers, those undergoing fertility treatment, and those experiencing domestic abuse.

Collective

Strengthened Trade Union and Collective Bargaining Rights

The Bill significantly strengthens trade union rights: simplifying the recognition process, providing unions with access rights to workplaces (including digital access), reducing thresholds for industrial action ballots, and repealing provisions introduced by the Trade Union Act 2016 and Strikes (Minimum Service Levels) Act 2023. Employers with recognised unions should review their collective agreements.

2026 UK HR Compliance Calendar

April 2026
  • New National Living/Minimum Wage rates (if revised by Low Pay Commission)
  • New SSP, SMP, SPP and other statutory payment rates take effect
  • Employment Rights Bill: monitor commencement orders for day-one rights
By 4 April 2026
  • Gender pay gap reporting deadline for private sector employers with 250+ employees
  • Submit report to government gender pay gap service and publish on company website
Throughout 2026
  • Right to work checks: update processes for any new document verification rules
  • Monitor Employment Rights Bill implementation dates and prepare policy updates
  • Review zero-hours and irregular-hours contracts ahead of guaranteed-hours provisions
Q3-Q4 2026
  • Review employment contracts and handbooks for Employment Rights Bill compliance
  • Train managers on updated day-one unfair dismissal rights and fair probation management
  • Assess collective bargaining exposure ahead of strengthened union recognition provisions

How BambooHR Helps UK Employers Stay Compliant

Grouper Technology configures BambooHR for UK employment law, covering the statutory workflows, integrations and reporting tools you need to manage compliance effectively.

📊

Leave and absence management

Track annual leave, SSP, SMP and SPP entitlements automatically. BambooHR calculates pro-rata entitlements, manages carry-over rules and flags when employees are approaching statutory limits.

⚖️

Gender pay gap reporting

Pull pay, bonus and quartile data directly from BambooHR for your annual gender pay gap report. Reduce the time spent gathering data from disparate systems to minutes.

🔒

Right to work document storage

Store right to work documents securely with expiry alerts. BambooHR notifies HR and managers before visa or documentation expiry, giving time to take action before legal exposure arises.

📋

Written statement and contract management

Issue day-one written statements and employment contracts via BambooHR's e-signature feature. All documents are stored in each employee's secure record with a complete audit trail.

🔔

Probation and performance tracking

With day-one unfair dismissal rights incoming, fair probation management becomes essential. BambooHR lets you set probation milestones, document reviews and record decisions against a clear timeline.

💼

Payroll integration for statutory pay

BambooHR integrates with Sage Payroll, ADP, Moorepay and other UK payroll providers. Statutory pay calculations feed directly into payroll, reducing manual errors on SSP, SMP and redundancy pay.

Frequently Asked Questions

What is the National Living Wage in the UK for 2025-2026?+
The National Living Wage (for workers aged 21 and over) is £12.21 per hour from April 2025. The National Minimum Wage for workers aged 18-20 is £10.00 per hour; for workers under 18 and apprentices, it is £7.55 per hour. Rates are reviewed annually by the Low Pay Commission and typically change in April each year.
How many days holiday are employees entitled to in the UK?+
Full-time employees are entitled to a minimum of 28 days paid holiday per year (5.6 weeks), which can include the 8 UK bank holidays. Part-time workers receive a pro-rata entitlement based on their contracted hours. From 2024, casual and irregular-hours workers accrue leave at 12.07% of hours worked, following reforms to holiday pay rules.
What is the Employment Rights Bill and when does it take effect?+
The UK Employment Rights Bill, introduced in 2024 and progressing through Parliament in 2025-2026, is the most significant employment law reform in a generation. Key changes include: day-one unfair dismissal protection (replacing the existing 2-year qualifying period); day-one rights to guaranteed hours for zero-hours workers; day-one flexible working rights for all employees; and strengthened rights for trade union recognition and collective bargaining. Implementation dates vary by provision and will be confirmed by regulations.
What is the Statutory Sick Pay (SSP) rate in 2025-2026?+
The SSP rate from April 2025 is £116.75 per week (increased from £109.40). SSP is payable from the fourth day of illness (three 'waiting days' apply, except in certain circumstances). Employees must earn at least £123 per week (the lower earnings limit) to qualify. SSP is payable for up to 28 weeks.
Are zero-hours contracts being banned in the UK?+
Zero-hours contracts are not being banned outright, but the Employment Rights Bill introduces significant new rights for workers on zero-hours or irregular-hours contracts. Workers will have the right to request a guaranteed-hours contract based on their average hours worked during a reference period. Employers can still offer zero-hours arrangements, but workers can request a more stable contract and employers must provide a reasonable reason for any refusal.
What is Statutory Maternity Pay (SMP) in the UK?+
Statutory Maternity Pay is payable for up to 39 weeks: 90% of average weekly earnings (AWE) for the first 6 weeks, then the lower of 90% of AWE or the flat rate (£184.03 per week from April 2025) for the remaining 33 weeks. Employees must have 26 weeks of continuous service by the 15th week before the expected week of childbirth and must earn at least the lower earnings limit (£123/week) to qualify.
Do UK employers need to carry out right to work checks?+
Yes. UK employers have a legal obligation to check that all employees have the right to work in the UK before employment begins. Failure to carry out correct checks can result in a civil penalty of up to £60,000 per illegal worker (increased from £20,000 in 2024). Checks can be carried out manually, using an online service for eligible individuals, or via an Identity Document Validation Technology (IDVT) service provider.
What are the gender pay gap reporting requirements in the UK?+
Employers with 250 or more employees must publish annual gender pay gap reports by 4 April each year (private sector). Reports must cover six metrics including mean and median pay gaps, bonus gaps, and the proportion of employees in each pay quartile. Reports are published on both the company's website and the government's gender pay gap service. Failure to report is unlawful and can be investigated by the Equality and Human Rights Commission.
Disclaimer: This guide provides general information about UK employment law as of June 2026 and is intended for HR and business professionals. It does not constitute legal advice. Employment law changes frequently, particularly during the implementation of the Employment Rights Bill; always verify current requirements with ACAS, the Department for Business and Trade, or a qualified employment solicitor.

Let BambooHR simplify UK compliance

Grouper Technology configures BambooHR for UK employment law including Employment Rights Bill changes. Book a free demo to see how it works.

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