Employment law changes coming up in April 2026
From April 2026, new legislation will come into force, affecting employers and employees.
From the first week of April, employment tribunal compensation limits (The Employment Rights (Increase of Limits) Order 2026) will increase, alongside Statutory Pay and Statutory Maternity Pay. Our employment law solicitors explain more in this blog.
Increase in compensation limits for unfair dismissal and redundancy
As part of the annual review of The Employment Rights (Increase of Limits) Order, the following rates will increase from 6th April 2026:
| Compensation type | Old rate | New rate from 6th April 2026 |
| Unfair dismissal | £118,223 | £123,543 |
| An employee’s weekly pay for statutory redundancy payments and unfair dismissal | £719 | £751 |
| Failure for the employer to have a written policy on dealing with qualifying tips, gratuities and service charges, or failure to create a record of how they have been dealt with | £5,135 | £5,366 |
| Guarantee payment payable to an employee in respect of any day | £39 | £41 |
| Unfair dismissal is by virtue of section 100(1)(a) or (b), 101A(d), 102(1) or 103 of the 1996 Act | £8,763 | £9,157 |
| Employee is excluded or expelled from the union in contravention of section 174 of the 1992 Act and not admitted or re-admitted by the date of the application for compensation | £13,384 | £13,986 |
| Unlawful inducement relating to trade union membership, activities or collective bargaining | £5,735 | £5,993 |
What is The Employment Rights (Increase of Limits) Order?
The Increase of Limits Order is a UK statutory legislation that updates the financial limits for compensation in employment law. Each financial year, the Order increases or decreases monetary caps on employment-related payments and awards (compensation) in line with inflation, measured by the RPI (Retail Price Index).
These limits are used by Employment Tribunals and in statutory calculations.
Statutory pay increases
Statutory pay will increase from the first week of April and will apply to Statutory Maternity Pay, Statutory Adoption Pay, Statutory Sick Pay (SSP) and more.
Maternity pay
From 5th April 2026, after the first six weeks, Statutory Maternity Pay will increase from £187.18 per week to £194.32 per week, or 90% of the employee’s average weekly earnings (whichever is lower).
Read more about maternity pay and your rights here.
Other statutory pay increases
From 6th April 2026, the following statutory pay rates will increase:
| Pay type | Old rate (per week) | New rate from April 2026 |
| Statutory Adoption Pay (SAP) (after the first six weeks) | £187.18 | £194.32 (or 90% of average weekly earnings, whichever is lower) |
| Paternity Pay | £187.18 | £194.32 (or 90% of average weekly earnings, whichever is lower) |
| Statutory Shared Parental Pay (ShPP) | £187.18 | £194.32 (or 90% of average weekly earnings, whichever is lower) |
| Statutory Neonatal Care Pay (SNCP) | £187.18 | £194.32 (or 90% of average weekly earnings, whichever is lower) |
| Statutory Parental Bereavement Pay (SPBP) | £187.18 | £194.32 (or 90% of average weekly earnings, whichever is lower) |
| Statutory Maternity Pay (SMP) | £187.18 | £194.32 (or 90% of average weekly earnings, whichever is lower) |
| Statutory Sick Pay (SSP) | £118.75 | £123.25 payable from the first day of illness |
How our employment law solicitors can help
If you’re unsure how any of these changes will affect you as an employee or an employer, speak to our Employment Law team on 0117 325 2929 or fill out our online enquiry form.
