Millions of workers across the United Kingdom are set to gain enhanced employment rights from April 2026, as the Labour government prepares to introduce a significant package of legislative changes. The reforms, heralded as the biggest upgrade in a generation, follow intense negotiations between ministers, business leaders, and trade unions.
Key Reforms and a Major Policy U-Turn
The government has confirmed a suite of four primary measures designed to bolster worker protections. However, the announcement was overshadowed by a significant policy reversal on a flagship manifesto pledge. The proposed right to claim unfair dismissal from an employee's first day in a job has been scrapped. After listening to business concerns, the government brokered a deal to instead implement a six-month service threshold for such claims.
This compromise, described by Conservative leader Kemi Badenoch as "another humiliating U-turn," has sparked political controversy. Badenoch criticised the government, stating, "Labour talk about stability, but govern in chaos. No company can plan, invest or hire with this level of uncertainty hanging over them." She vowed that the Conservatives would fight elements of the bill they believe damage business growth.
Details of the New Employment Rights
Despite the climbdown on day-one unfair dismissal, several transformative rights are set to come into force, provided the bill passes into law by the planned timeline of April 2026.
Statutory Sick Pay (SSP) will undergo two major changes. Firstly, it will be paid from the very first day of illness, abolishing the current three-day waiting period. Secondly, the lower earnings limit qualification will be removed, extending eligibility to many more low-paid workers.
Parental leave rights are also being strengthened. Both paternity leave and ordinary parental leave will become 'day-one rights,' meaning employees can give notice to take this leave from their first day in a new job. Furthermore, the restriction that prevented taking paternity leave after shared parental leave is likely to be abolished.
National Living Wage Increase Confirmed
Alongside the new rights, Chancellor Rachel Reeves has confirmed a rise in the National Living Wage. From April 1, 2026, the rate for eligible workers aged 21 and over will increase by 4.1% to £12.71 per hour.
This uplift is substantial for full-time workers, adding approximately £900 to their annual pay packets. The government estimates that around 2.4 million low-paid workers will benefit directly from this increase.
The Trades Union Congress, after days of negotiation, has indicated its preparedness to accept the overall compromise package. Paul Nowak, TUC General Secretary, emphasised the priority: "The absolute priority now is to get these rights – like day-one sick pay – on the statute book so that working people can start benefiting from them from next April."
