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As February draws to a close, we’re looking ahead to the key employment law changes coming into effect in 2026. From case law developments on collective redundancy consultation to rising National Minimum Wage rates and new Statutory Sick Pay entitlements, this month’s newsletter highlights the developments every employer needs to know. Staying informed now will help you manage compliance, control costs, and support your workforce effectively.
If you require further information on anything included in this update or any employment issue you may be facing, contact our Employment team on 0330 123 9501 or reply to this email. |
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INSIGHT EAT CLARIFIES COLLECTIVE REDUNDANCY DUTIES
The Employment Appeal Tribunal (EAT) has clarified that the duty to consult on collective redundancies is based on future plans, not past dismissals. In Microfocus Ltd v Mildenhall, the tribunal confirmed that staggered dismissals do not automatically trigger consultation, but records must show clear decision-making.
Employers should note: consultation is required when 20 or more employees are proposed for dismissal within 90 days, with 30–45 day periods depending on scale, and notification to the Secretary of State via form HR1 is mandatory.
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INSIGHT NATIONAL MINIMUM WAGE UPDATES 2026
From April 2026, National Minimum Wage rates rise, and the new Fair Work Agency will enforce compliance.
Key rates:
- Over 21: £12.71
- 18–20: £10.85
- 16–17 AND Apprentices: £8/hour
Employers should check payroll systems for deductions, salary sacrifice schemes, and updates for staff moving between age bands. Errors can lead to fines and reputational risk, as seen with several high-profile employers in 2025.
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From 06 April 2026, employees will be entitled to Statutory Sick Pay from day one, and the lower earnings limit is being removed. More low-paid and part-time staff will now qualify.
Employers should:
- Update payroll and absence policies to reflect the new rules.
- Check contracts and payment systems to ensure eligible staff are paid correctly.
- Train managers and monitor absence to manage potential increases in claims.
These changes increase costs and compliance obligations, and the Fair Work Agency will have powers to enforce them. Taking early action will help minimise risk and keep your workforce supported.
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Speak to one of our employment law & HR experts
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© Copyright 2026 | Flint Bishop Limited. All rights reserved The content of this email is provided for general interest and information. It contains only a brief overview of aspects of the subject matter and is not intended to provide comprehensive statements of the law. It does not constitute legal advice and is not intended to provide a substitute for it. Your information will be processed in accordance with our privacy notice. Flint Bishop Limited (Flint Bishop) is a Limited Company registered in England and Wales (Reg No: 05991683). Registered office: Pinnacle Building, 2 Prospect Place, Pride Park, Derby DE24 8HG. Flint Bishop Limited is authorised and regulated by the Solicitors Regulation Authority (SRA ID: 8006955). VAT No: 469 2812 59. The word ‘partner’, used in connection with Flint Bishop, refers to a director or employee and should not be construed as indicating any relationship of partnership (within the meaning of the Partnership Act 1890) exists between all or any of the individuals so designated or between any individual and Flint Bishop. A list of directors’ names is available for inspection at our registered office. Flint Bishop, Flint Bishop Solicitors, FB Costs and FB Training are also trading names of Flint Bishop Limited.
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