Running an owner-managed business means wearing a lot of hats. Hiring, payroll, client management, operations – the list never stops. With several key Employment Rights Act reforms arriving this April and more planned for later in the year, here are the ten questions we’re hearing most from clients, paired with clear, practical answers.
Q1: “Do day one rights only apply to large employers?”
No, these rights apply to every employer, regardless of size. From 6 April 2026, all employees will have day one access to Statutory Paternity Leave (up to two paid weeks) and Statutory Unpaid Parental Leave (up to 18 weeks across a child’s first 18 years). The previous 26-week qualifying period is being removed entirely.
Q2: “Is Statutory Sick Pay basically staying the same?”
No, SSP is changing in two important ways. It will be payable from the first day of absence, removing the existing waiting days. The Lower Earnings Limit is also being removed, meaning more employees will now qualify. Review your sickness and absence policies, update your payroll rules, and make sure managers know how to record and handle absence correctly.
Q3: “Are increases to family-related statutory payments small?”
They may look modest in isolation but they add up. From 6 April 2026, the following payments increase from £187.18 to £194.32 per week: Statutory Paternity Pay, Statutory Adoption Pay, Shared Parental Pay, and Paternity Leave (Bereavement). If several employees take family-related leave throughout the year, the cumulative cost is worth factoring into your planning.
Q4: “If we reviewed National Minimum Wage last year, are we ready for 2026?”
Not necessarily – this year’s increases are more substantial, particularly for younger workers and apprentices. The government is continuing its long-term aim of narrowing the gap between age bands. Review roles paid close to the minimum wage threshold, check deductions for items such as uniforms or tools, and review salary sacrifice arrangements that could inadvertently push pay below NMW.
Q5: “If we already offer hybrid working, do the flexible working changes affect us?”
Yes, even if your culture is already flexible, the rules around how you handle requests are changing. From April, flexible working becomes a day one right. Employers must follow a more structured and consistent process when responding to requests. You’ll need an updated flexible working policy, a clear request and response process, and managers who understand the legal grounds for agreeing or declining a request.
Q6: “Do harassment and whistleblowing changes mainly affect big companies?”
No, they apply to every employer, including small businesses. The Act introduces a new protected basis for whistleblowing and raises expectations around how employers prevent and respond to harassment. What it does require is clear, up-to-date policies, a straightforward way for employees to raise concerns, and managers who feel confident handling these situations.
Q7: “Will redundancy consultation rules stay the same?”
No, and the consequences of getting this wrong are increasing. Protective awards for failures to collectively consult in redundancy situations will rise from 90 days to 180 days. If your business is growing, restructuring, or acquiring other companies, now is the time to make sure your consultation processes are robust and legally sound.
Q8: “Are gender pay gap and menopause action plans now mandatory?”
Not yet – these remain voluntary for businesses with fewer than 250 employees. That said, more organisations are choosing to adopt them early because they improve staff retention, strengthen employer branding, support employee wellbeing and fairness, and position the business ahead of possible future requirements.
Q9: “Is the Fair Work Agency only relevant to large employers?”
No, it will set the tone for employment standards across the board. The Fair Work Agency is being introduced to support greater fairness, consistency and stronger enforcement of employment law. The best preparation is straightforward: make sure your HR policies and working practices are aligned with the new legislation.
Q10: “We haven’t updated everything yet, is it too late?”
It’s not too late but you need to act now. A few focused actions will save you significant time and stress:
- Review and update contracts and policies
- Check payroll settings are correctly configured
- Train managers before the changes come into effect
- Align your sickness, leave and flexible working procedures
- Communicate the changes to your team in advance
How Innov8 HR Can Support You
Whether you need help reviewing your policies, preparing your managers, or simply sense-checking your readiness, our team is here to guide you through it.
Contact us:
rochelle@innov8hr.co.uk
www.innov8hr.co.uk