The fundamentals of current employment law and employee entitlements for 2026

Rest breaks, holidays and working time

Paid annual leave

  • 28 days per year

Rest breaks

  • 20 minutes break for every 6 hours worked
  • 11 consecutive hours rest in each 24-hour period
  • 24 hours uninterrupted rest each week or 48 hours every fortnight
  • Maximum average 48 hours work per week (unless employee has signed an opt out)

Written statements

All employees and workers are entitled to:

  • Statement of terms and conditions of employment on or before the first day of work
  • An itemised pay statement
  • Written reason for dismissal after 2 years’ service or 6 months’ service from January 2027 (no service requirement if pregnant)

National Minimum Wage and notice periods

Age (years) 1 April 2026
Apprentice £8.00
16-17 £8.00
18-20 £10.85
National Living Wage 21+ £12.71

Statutory minimum notice periods

Employer must give:

  • 1 week’s notice after 1 month of continuous employment
  • 2 week’s notice after 2 years continuous employment
  • 1 week’s notice for each year of continuous service up to a maximum of 12 weeks’ notice

Employee must give:

  • 1 week’s notice after 1 month of continuous service

Redundancy

Three possible reasons for redundancy:

  • “Business redundancy” – the employer has ceased (or intends to cease) to carry on the business for which the employee was employed
  • “Place of work redundancy” – the employer has ceased (or intends to cease) to carry on that business in the place where the employee was employed
  • “Employee redundancy” – the requirements for employees to carry out work of a particular kind have ceased or diminished (or are expected to cease or diminish)

Factors for employers to consider:

  • Fair selection criteria
  • Duty to consult
  • Suitable alternative employment

To be eligible to claim a statutory redundancy payment an employee must have been:

  • Dismissed on grounds of redundancy
  • Continuously employed by the employer for at least 2 years

Employment tribunal claims

Potentially fair reasons for dismissal include:

  • Capability
  • Conduct
  • Redundancy
  • Statutory breach
  • Some other substantial reason (e.g. company restructure)

Service requirements for claims

  • Unfair dismissal: 2 years*
  • Redundancy pay: 2 years
  • Discrimination: None
  • Breach of contract/unlawful deduction of wages: None

*No time limit applies for certain automatically unfair dismissals and legal advice should be sought in respect of any specific claim.

* As of January 2027 the service requirement for unfair dismissal claims will be reduced to 6 months.

Time limit for claims*

  • Unfair dismissal: 3 months from the effective date of termination
  • Redundancy pay: 6 months from the effective date of termination
  • Discrimination: 3 months from alleged act of discrimination
  • Breach of contract/unlawful deduction of wages: 3 months from breach or deduction

The time limit to respond to an employment tribunal claim is 28 days from the date of issue.

*The above are some examples of time limits in the Employment Tribunal. This list is not exhaustive and legal advice should be sought in respect of any specific claim. This detail is correct as at 1st April 2026 but predates the Employment Rights Bill com­ing into force and may therefore be updated if required.

* 3 month current time limit for claims will be extended to 6 months from 1 October 2026.

* The above time limits may be extended by Acas Early Conciliation (EC) for a period of up to 12 weeks. EC periods will be reviewed in October 2027.

Compensation limits (from 6 April 2026)

Unfair dismissal:

  • Basic award - £22,530
  • Compensatory award - £123,543 or 52 weeks’ pay (whichever is lower)

Redundancy pay: 

  • £22,530

Discrimination: 

  • No limit

Breach of contract/unlawful deduction of wages:

  • Tribunal - £25,000
  • Court – no limit

One week’s pay*: 

  • £751

*For the purposes of calculating redundancy payments.

*The limit on awards for Unfair Dismissal will be removed from 1 January 2027

Statutory Sick Pay (SSP)

Eligibility

  • Qualifying service: None
  • Qualifying absence: Payable from the first day of absence
  • Period: 28 weeks
  • Rate: £123.25 per week or 80% of the employee’s average weekly earnings, whichever is lower (from 6 April 2026)

An employee must earn at least the current lower earnings limit as set by HMRC.

Proof of illness (a “Fit Note”) should be provided after 7 days absence.

Payment

  • SSP is payable from the first day of absence

Notification

  • Sickness absence should be reported within time limits set by an employer (or within 7 days if none is set).

Annual Leave

  • Statutory annual leave is accrued while the employee is off work sick.

Parental Bereavement Leave and Pay

Eligibility

Applies on the death of a child under 18, including a stillbirth after 24 weeks of pregnancy.

  • Qualifying service: None for leave, 6 months for pay
  • Entitlement: One or two weeks which can be taken together or separately within 56 weeks of the death or stillbirth of a child
  • Pay: £194.32* or 90% of the average weekly earnings whichever is less

*As at 6 April 2026

Family friendly policies

Maternity leave

  • Qualifying service: None
  • Duration: Up to one year
  • Ordinary maternity leave: 26 weeks
  • Additional maternity leave: 26 weeks
  • Keeping in touch: Up to 10 days of paid work during maternity leave without loss of maternity leave rights

Maternity pay

  • Qualifying service: 26 weeks*
  • Duration: 39 weeks
  • Rate: First 6 weeks, 90% of average weekly earnings. 
  • Remaining 33 weeks, £194.32** or 90% of average weekly earnings, whichever is less

Maternity allowance

  • Payable by the Benefits Agency to women who do not qualify for statutory maternity pay
  • Rate: £194.32** or 90% of average weekly earnings, whichever is less

Paternity leave and pay

  • Qualifying service: None for leave, 26 weeks for Pay*
  • Duration: 2 weeks - can be taken non-consecutively
  • Rate of pay: £194.32* per week or 90% of average weekly earnings, whichever is less

Neonatal Care Leave & Pay

  • Qualifying service for leave: None for leave, 26 weeks for pay
  • Qualifying service for pay: 26 weeks*
  • Duration: Up to a maximum of 12 weeks’ leave (in addition to other statutory family leave) to care for a child who has received, or is receiving, qualifying neonatal care in respect of children born on or after 6 April 2025
  • Entitlement: £194.32 per week or 90% of average weekly earnings, whichever is less

*Qualifying service applies as at the qualifying week, which is the 15th week before the expected week of childbirth or, in the case of adoption pay and neonatal pay in adoption cases, the week of notification of having been matched with the child.

Bereaved Partners Paternity Leave (BPPL)

  • Qualifying service: None
  • Duration: Up to 52 weeks (to be used within the 52-week period starting with the day after the date of birth or adoption) for the purpose of caring for a child where the primary carer has died.
  • Rate: Unpaid - however any unused Statutory Paternity Pay entitlement may be claimed.

Shared parental leave and pay

  • Qualifying service: 26 weeks*
  • Duration: Up to 1 year
  • Rate of pay: £194.32** or 90% of the average weekly earnings, whichever is less, for up to 39 weeks

Adoption leave

  • Qualifying service: None
  • Duration: Up to 1 year

Adoption pay

  • Qualifying service: 26 weeks ending with the week of notification of having been matched with the child
  • Duration: 39 weeks
  • Rate: First 6 weeks, 90% of average weekly earnings. Remaining 33 weeks, £194.32** or 90% of average weekly earnings, whichever is less

Parental leave

  • Qualifying service: None
  • Duration: Up to 18 weeks unpaid leave can be taken up to the child's 18th birthday. No more than 4 weeks can be taken in any 1 year in respect of an individual child, unless agreed otherwise

* With the exception of adoption pay, qualifying service applies as at the qualifying week, which is the 15th week before the expected week of childbirth.

* As at 6 April 2026

Carer’s Leave

  • Eligibility: Applies to employees who have a dependant with a long-term care need.
  • Qualifying Service: Nil
  • Entitlement: One week’s unpaid leave (pro-rated for part-time staff) to provide or arrange care in each rolling 12-month period

How can I find out more?

If you’d like to discuss any of the recent changes or need practical, tailored advice, our dedicated employment team is here to help. Get in touch with our team.

You can also learn more about our fixed fee employment services here: Prism by Lindsays.