Is your small business up to date with employment law?

Anna Stubbs • July 15, 2026

“Just 20% of SMEs identify regulatory compliance as an organisational priority, compared with almost a third of larger firms (32%). With little or no HR support and limited guidance, small businesses often lack awareness of employment law and may struggle to comply with the changes.”


CIPD Labour Market Outlook, May 2026



The recent Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD) shows that some small and medium-sized enterprises (SMEs) have a poor awareness of employment law and are not prioritising their regulatory duty as employers.

But with the Employment Rights Act 2025 introducing several recent changes to UK employment law, it’s vital that your SME is aware of current employment law and your regulatory requirements as an employer.

Five recent changes to employment law that came into force from April 2026.


1. Day-One Statutory Sick Pay (SSP):

The traditional three-day waiting period for sick pay has been abolished. Statutory Sick Pay (SSP) is now a day-one right for your employees. The lower earnings limit has also been removed to include part-time workers.


2. Day-One Parental Leave Rights:

The previous 26-week continuous service requirement for parental leave has been scrapped. Employees now qualify for paternity leave and unpaid ordinary parental leave from their very first day on the job.


3. Doubled Redundancy Penalties:

If your organisation fails to meet its statutory collective redundancy consultation obligations, the maximum tribunal ‘protective award’ penalty has doubled from 90 days of full pay to 180 days.


4. Enhanced Whistleblowing Protection:

The definition of a protected disclosure is expanded to explicitly include reporting sexual harassment. This shields whistleblowers from automatic dismissal or workplace detriment.


5. Launch of the Fair Work Agency:

The Fair Work Agency began operating on 7 April 2026. This government body actively polices corporate compliance regarding holiday pay, statutory sick pay and national minimum wage violations. The agency also provides improved guidance on employment law.

Keeping you up to date with the latest employment law changes


If your business hasn’t updated its payroll, HR and people processes for any of the main changes introduced by the Employment Rights Act 2025, now’s the time to take action.


Come and talk to our team. We’ll be happy to run you through the latest employment law changes and the actions needed to keep you compliant with the law.

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