In this edition of our Employment Law Update, we highlight key developments and recent cases that employers should be aware of following the significant legislative changes introduced in April 2026. Firstly, a reminder of the new rights and obligations that will take effect in accordance with the Employment Rights Act 2025, and then some recent tribunal decisions and media-reported cases that drive the point home in practice. This will cover topics such as transparency on tips and service charges, minimum wage rules, social media and workplace communication, and the increasing legal elements of mental health and discrimination. Further reforms are on the horizon, such as upcoming changes to the unfair dismissal laws, and employers are urged to ensure they are ‘doing the right thing’ now in order to minimize risk. Reminder: April 2026 Employment Law Changes Now in Force It is worth reiterating that the first of the major changes under the Employment Rights Act 2025, which will greatly enhance the rights for employees and impose greater responsibilities on employers, comes into effect on 6 April 2026. Key changes include: Day-one rights to paternity and unpaid parental leave The change to paying statutory sick pay from the first day of sick leave and until the employee has reached the standard limit. The extension of statutory sick pay to lower-paid employees from the first day of absence. More sanctions for collective redundancy breaches Improved whistle-blowing protection for sexual harassment complaints Initiation of the new Fair Work Agency with proactive powers. Employers need to make sure that policies, payroll systems, managers’ instructions, and record-keeping systems are all updated, in practice and not just in writing, to apply these changes. For those who didn’t receive our newsletter last month, you can find the content on the link below: Employment Rights Act 2025 – Employer Compliance Checklist (April 2026) https://klglaw.co.uk/employment-rights-act-2025-employer-compliance-checklist-april-2026/ Minimum Wage Enforcement Remains a Key Compliance Risk Understand that minimum wage is a significant compliance concern. Be aware that minimum wage is a critical compliance issue. But as in general the job market is being changed by broader job law changes, the enforcement of the obligations under the National Minimum Wage continues to be a problem area for employers. Minimum wage rates have been raised in all age bands from 1 April 2026 and enforcement of minimum wages is anticipated to be more centralised once the Fair Work Agency is established. National Minimum Wage Rates to Apply from 1 April 2026 Category NMW Rate Annual Increase (£) Annual Increase (%) National Living Wage (21 and over) £12.71 £0.50 4.1 18–20 Year Old Rate £10.85 £0.85 8.5 16–17 Year Old Rate £8.00 £0.45 6.0 Apprentice Rate £8.00 £0.45 6.0 Accommodation Offset £11.10 £0.44 4.1 The government has stepped up its enforcement efforts in the area of compliance with the National Minimum Wage, which has been spurred by new BBC coverage of the release of a list of nearly 400 employers in the UK who were found to have underpaid workers. Included in the list were Omnia Outsourcing, a payroll firm in Reading, which was ordered to pay back £8,250.95 to 14 employees, as well as several other big names, such as retailers and health and travel organisations. Employers on the list were ordered to pay back more than £7.3m of wages, plus financial penalties. The government has stated that it will take action against underpayment no matter if it is unintentional or due to a payroll mistake and publicly name those responsible. The checks are due before more hikes in minimum wage rates from April, from which workers over the age of 21 are to be paid at least £12.71 per hour and younger workers and apprentices are to receive higher rates.Employers are urged to take extra care when checking their payroll systems, deductions and working time calculations to ensure that they comply, especially as failing to comply could have a negative effect on their reputation if they are made public. Looking Ahead: Unfair Dismissal Reform on the Horizon Employers should also be getting ready for upcoming changes to the unfair dismissal provisions, which are not yet in force but will come into effect on 1 January 2027. These changes will: Shorten from two to six months the qualifying period for unfair dismissal claims. Repeal of the cap on compensation awards This will change the nature of the dismissal risk. Employers might need to rethink: Probation periods Recruitment practices Early performance management All of this will have legal implications, and with the reforms coming into effect, early preparation will be essential to legal risk management in 2026.   Tipping and Transparency: Lessons from the Annabel’s Service Charge Controversy Recent publicity surrounding the diversion of staff service charges at Annabel’s in Mayfair highlights the continued scrutiny on how employers handle tips and gratuities. The case serves as a reminder of the industrial relations, legal and reputational risks where the allocation of service charges and tips is unclear or inconsistent with the spirit of the law, despite the Act, which was introduced in October 2024, stipulating the 100% allocation to workers. This is a reminder for employers, especially in service and hospitality industries, to: Review tronc arrangements Specify, in a clear way, how tips are shared Have open communication with staff. Don’t use workers’ entitlements to pay bonuses to management or business costs. Social Media, Mental Health and “Injury to Feelings” Awards A recent Employment Tribunal decision against Sainsbury’s underlines the dangers for employers when it comes to communication in the workplace and the well-being of employees. The case involved an employee who had been in the role of a store manager for a long time, who had been off work on sick leave related to anxiety, and who was not included in an internal and external social media post celebrating male leaders on International Men’s Day. The manager was reportedly left in a state of embarrassment and distress by the omission, as they asked questions about his missing from the role and about his health. The decision amounted to unfavorable treatment due to disability, and the tribunal awarded £11,852 in compensation, including a substantial amount for injury to feelings. The case is a valuable reminder that workplace communication, such as social media and recognition posts, can lead to claims of discrimination if someone has been excluded or treated differently due to a sickness or mental health issue. Employers need to make their managers aware that any interaction, regardless of how informal, can carry a legal risk, especially if it involves a protected characteristic like disability. Updating Employee Handbooks We are currently advising a number of our clients with respect to making updates to their employee handbooks and workplace policies that will align with the legislative updates coming into effect on April 1, 2026, which will include updates with respect to: Statutory leave Sick pay Whistleblowing Enforcement risk If you would like your handbook reviewed or updated to ensure compliance, please get in touch, and we would be happy to assist. KLG Office Update We have some great news from the KLG office. Kallum Kalsi has been promoted to associate solicitor this month, one of our long-running solicitors. This promotion recognizes Kallum’s continued hard work, commitment to clients, and contribution to the firm. Closing Remarks The developments highlighted in this newsletter demonstrate the increasingly practical and enforcement-driven approach being taken to employment rights. From legislative reform and enhanced regulatory powers to tribunal decisions arising from day-to-day management practices, employers are expected to ensure compliance not only in policy terms but also in how decisions are applied in practice. Reviewing pay arrangements, workplace communications, management training, and internal processes now will help reduce legal risk and ensure organisations are well-prepared for further reform ahead. As employment law continues to evolve, taking proactive steps and seeking timely advice will remain key to navigating change confidently and compliantly. Contact Information Kalra Legal Group Email: [email protected] Website: https://klglaw.co.uk/contact