Welcome to Breathe's employment law hub

With the UK Employment Rights Act bringing some big changes, we're here to help organisations, SMEs and HR stay ahead of UK employment law - now and in the future. This hub is built to guide you through the latest best practices for protecting your business and supporting your people. 

Whether it's understanding new employment rights or updating workplace policies, we've got the resources you need to help create a compliant and positive work environment. 

 

Last updated: 29th October 2026

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Autumn Budget 2026: What you need to know 

  • Pay rises in April 2027. The National Living Wage goes up to £13.21 an hour from 1 April 2027, with matching rises for under 21s and apprentices.
  • Non-compete clauses are in the spotlight. The government plans to legislate so they don’t get in the way of hiring, with more detail due in early 2027.
  • More parents will get paid leave. Parental pay will extend to self-employed dads and partners, though there’s no start date yet.
  • Pay transparency is coming. The government has pledged to act on pay in job adverts, but there’s no detail or timing yet.
  • Payroll changes are on the way. Benefits in kind move onto payroll from 6 April 2027, and the tax-free mileage rate for the first 10,000 business miles is now permanent.

You’ll find the full list of rates and dates in the table below.

 

✅ Key changes now live

 

Change Update
Employer National Insurance rate Increased from 13.8% to 15%. The Autumn Budget 2026 didn't change this.
Class 1 NI threshold Reduced from £9,100 to £5,000 per year. Frozen until April 2031.
National Living Wage Currently £12.71/hour, increasing to £13.21/hour from 1 April 2027.
National Minimum Wage Currently £10.85/hour, increasing to £11.27/hour from 1 April 2027.
16 to 17 and apprentice rate Currently £8.00/hour, increasing to £8.31/hour from 1 April 2027.
Statutory Sick Pay (SSP) Currently £123.25/week, or 80% of average weekly earnings if that's lower. Up from £118.75 on 6 April 2026 and payable from the first day of sickness.
Income tax thresholds Frozen until April 2031.
Employment Allowance Increased from £5,000 to £10,500.
Employment Allowance cap £100,000 cap removed from 6 April 2025.
Lower Earnings Limit Removed for SSP but still applies to other statutory payments.
Currently £129/week, rising to £133/week from April 2027.
Business rates relief (retail, hospitality and leisure) Currently, businesses with a rateable value up to £12,000 get 100% relief, and partial relief tapers up to £15,000. From 1 April 2027, the 100% relief threshold rises to £18,000, and partial relief runs up to £21,000. The government says around 70,000 businesses will pay no business rates.
Benefits in kind Company cars, vans, fuel and medical benefits must go through payroll from 6 April 2027. Other benefits follow from 6 April 2028.
Mileage rates 55p tax-free rate for the first 10,000 business miles is now permanent.
Rate above 10,000 miles rises from 25p to 35p from 6 April 2027.
Salary sacrifice National Insurance relief on salary-sacrificed pension contributions limited to £2,000 a year from April 2029.
Statutory redundancy pay: weekly pay cap Currently £751 in Great Britain and £783 in Northern Ireland, up from £719 and £749 on 6 April 2026.
Statutory redundancy pay: maximum payment Currently £22,530 in Great Britain and £23,490 in Northern Ireland.

 

⚖️ The latest legislation updates

  • Employers must keep adequate holiday records and holiday pay records for six years

  • Expanded leave entitlements from day one

  • Statutory sick pay (SSP) reforms

  • Whistleblowing protections

  • The Fair Work Agency

  • New sexual harassment and harassment duties for employers

  • Trade union law changes

  • Acas update to Code of Practice for grievance and disciplinary procedures

  • Increased employment tribunal time limits

  • Two-Tier Code for outsourced private sector workers

  • Six-month qualifying period for unfair dismissal

  • Changes to tipping law

  • Clampdown on fire and rehire practices

  • Collective redundancy changes

  • Bereavement leave expanded

  • Gender pay gap reporting and menopause action plans

  • Expanded blacklisting protections

  • NDA misuse prevention

  • Flexible working law changes

  • Enhanced redundancy protections for pregnant employees and new parents

  • Umbrella company regulations

  • Zero-hours contracts

  • Domestic abuse leave

  • Ethnicity and disability pay gap reporting

  • Non-compete clauses

  • Pay transparency in job adverts

  • Parental pay for self-employed parents

What the Employment Rights Act 2025 means for employers 

To stay compliant, employers will need to review and update: 

  • HR policies and employee handbooks 

  • Employment contracts and onboarding documentation, including pay, responsibilities, and employee benefits 

  • Internal training and communication plans 

With phased changes throughout 2026 and 2027, now is the time to audit and future-proof your policies. 

These reforms place a greater emphasis on proactive compliance, making regular audits and policy updates essential. 

 

 

✍️ What else you need to know

 

Introduction to employment law

Employment contracts

Discrimination and equality

Keep growing and stay compliant with employment law advice

Explore our employment resources

Employment law advice

Contracts and agreements

Employee rights and protections

 

 

 

 

Make HR simple, make compliance easier

HR can feel overwhelming when you’re juggling people, policies and processes. Our free guide shows how HR software helps small businesses stay organised, cut down on admin, and stay compliant without the stress.

In this guide, you’ll learn:

  • How HR software helps with employment law compliance

  • Why moving beyond spreadsheets saves time and reduces errors

  • Ways automation can ease everyday HR admin

  • What to look for in HR software as your business grows

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Introduction to employment law 

This section provides an overview of employment law for employers. Employment law governs the rights and responsibilities of employers and employees. From contracts and discrimination to redundancy, grievance procedures, and flexible working, keeping up-to-date is essential to avoid risks and support workplace wellbeing. 

UK employment law is detailed, but accessible with the right support - especially when changes occur twice yearly in April and October. 

That’s why getting some good employment law advice is super important for everyone involved. It helps both employers and employees get a clear picture of what they can and cannot do in the workplace. 

The UK has a pretty solid set of rules when it comes to employment law, covering all the big topics like unfair dismissal, working hours, and holiday entitlement. 

Plus, there are employment law services out there (just like the Breathe Partner network) ready to give expert advice and support on all sorts of issues, so both employers and employees can feel confident about their rights and obligations. 

We’ve also got lots of guides and templates, to help make it easier to get to grips with what employment law updates are out there. 

 

Employment contracts 

Employment contracts are a big deal when it comes to employment law. They spell out the essential details of what both employers and employees are signing up for. 

Every employee must receive a written statement of employment outlining: 

  • Job title 

  • Working hours 

  • Salary 

  • Leave entitlements (including holidays, maternity leave, paternity leave, and sick pay) 

  • Benefits 

  • Trade union rights (forthcoming) 

 

Changes to employment terms must follow consultation and notice protocols under the Employment Rights Act 1996. 

These contracts should cover the basics like job title, what the job involves, and how many hours you’ll be working, so everyone knows what’s expected. 

Employers have to hand over a written statement that lays out the important stuff like pay, holiday entitlement, benefits, and how much notice you need to give if you’re leaving. 

If there are any changes to the contract, employers need to play fair, give you a heads-up, and explain what’s happening to keep things clear and honest. 

If you want to switch up your working hours or maybe work from home, you can ask for flexible working arrangements. Employers have to take these requests seriously and let you know why if they can’t make it work. 

Some contracts might also have clauses to keep things confidential and protect company secrets. 

Sticking to UK employment law is crucial, and employers need to make sure their contracts follow rules on discrimination and equality. 

If you’re looking for advice on employment contracts, employment law experts from the Breathe Partner network, are there to help you understand your rights and what you’re signing up for, so you’re in the know and covered. 

 

Discrimination and equality 

Discrimination and equality are important parts of employment law, and it’s up to employers to make sure there’s no unfair treatment at work. 

Everyone should be treated fairly, no matter their age, gender, race, or if they have a disability. 

The Equality Act 2010 is like a rulebook for employers, showing them how to handle discrimination and equality. 

This protects against workplace discrimination based on: 

  • Age 

  • Gender 

  • Race 

  • Disability 

  • Pregnancy and maternity 

Employers must provide equal opportunities, pay, and fair treatment, backed by appropriate training and procedures. 

Employers need to make sure everyone gets equal pay and chances, and they can’t treat anyone differently because of pregnancy or maternity. 

If employees see or experience any discrimination or harassment, they can speak up, and employers have to act fast to sort it out. 

To keep the workplace fair and welcoming, employers can offer training and resources on these topics. 

Employment law experts are there to give advice and tips on sticking to UK employment law, helping employers build a respectful and fair work environment. 

Employees can also find lots of resources and support, like online guides and helplines, to get a better grip on their rights and what to do about discrimination and equality. 

 

Keep growing and stay compliant with employment law advice  

Our hub is regularly updated with the latest legal insights, legislative developments, employment law and practical advice aligned with the latest changes. 

With our expert guidance and actionable tips, you can confidently embrace these different types of updates, ensuring your business stays compliant and your people valued. 

For tailored advice and support, contact employment law or HR professionals - you can reach out to the Breathe Partner network.

 

Explore our employment resources  

Discover up-to-date news, expert blogs, comprehensive guides, informative webinars and practical tools that make handling legislative changes and UK employment law easier. 

With us, you can focus on growing your business while staying compliant with the latest rules – whether you're preparing for upcoming changes or planning for the future.   

 

Employment law advice 

Navigating the complexities of employment law can be challenging for both employers and employees. 

Seeking employment law advice from a qualified specialist is important to ensure compliance with relevant laws and regulations. Employers and employees can conveniently receive expert employment law advice via phone, making support accessible and immediate.  

Ask to talk to one of Breathe Partners for employment law advice. 

For employers, this advice can help avoid costly legal disputes and protect the business’s reputation. For employees, it ensures their rights are safeguarded and they receive fair treatment in the workplace. 

Employment law advice covers a broad spectrum of topics, including employment contracts, redundancy, discrimination, and non-disclosure agreements (NDAs). 

Specialists in employment law provide guidance on various employment-related matters, such as drafting and reviewing employment contracts, developing workplace policies, and handling procedures. 

They also represent both employers and employees in disputes, including employment tribunal claims, offering a comprehensive resource for navigating employment law complexities. 

 

Contracts and agreements 

Contracts and agreements form the basis of employment relationships, outlining the terms and conditions of employment, such as working hours, holiday entitlement, and pay. 

Employers must ensure that these contracts comply with relevant laws and regulations, including the Employment Rights Act 1996 and the Equality Act 2010. TUPE regulations should also be considered, as they protect employee rights during business transfers and ensure employees retain their terms and conditions when a company or service is transferred to a new employer. 

Employment contracts often include various clauses, such as confidentiality clauses and non-disclosure agreements (NDAs). 

These clauses are designed to protect sensitive information, including trade secrets and business strategies. But it is worth noting, that the use of NDAs and confidentiality clauses has sparked controversy, particularly when used to silence victims of harassment or abuse. 

Employers need to balance the protection of business interests with the rights and wellbeing of their employees. 

 

Employee rights and protections 

Employee rights and protections are fundamental to creating a fair and safe working environment. 

Employees are entitled to various rights, including the right to a safe workplace, equal pay, and protection from discrimination. 

Employers must comply with laws such as the Health and Safety at Work etc. Act 1974 and the Equality Act 2010 to ensure these rights are upheld. 

Employment law protections apply to employees in England, Wales, and Scotland, ensuring that members of the workforce across these regions are covered. 

Additionally, employees are protected from unfair dismissal and redundancy. 

Employers have to follow a fair process when dismissing an employee or making them redundant, providing a clear rationale and allowing for an appeal process. 

These protections are designed to ensure that employees are treated fairly and that their rights are respected throughout their employment. 

🏛️ 2026-2027 employment law changes: The complete guide for HR and line managers

Stay ahead of the curve with our free 2026-2027 employment law changes e‑book.

From sick pay and parental leave to flexible working and zero-hours contracts, we break down what’s coming and when - with clear timelines, practical tips and a checklist to help you stay compliant and confident.

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🎥 On-demand webinars

Webinar hub image - Free webinar 5 legal changes every manager needs to know

5 legal changes every manager needs to know

We give you a clearer picture of the biggest Employment Rights Act changes and practical advice on applying the new rules in your workplace.

Employment Tribunals webinar hub

Employment tribunals Q&A for SMEs

Employment tribunals experts, Dan Jenkins and Tracey Osmond from Access2 HR tackle real questions from employers about employment tribunals.

Employment Tribunals webinar hub

How to avoid an employment tribunal

HR professionals, Dan and Tracey provide practical steps on how SME business owners can avoid employment tribunals and stay compliant.

Want the latest employment law & HR updates sent straight to your inbox?

Subscribe to the Breathe blog now.

Employees who meet eligibility criteria are entitled to statutory maternity leave of up to 52 weeks. Statutory maternity pay (SMP) can be paid for up to 39 weeks. Paternity leave is available for eligible employees for up to 2 weeks, with statutory paternity pay (SPP) provided. Businesses may choose their own maternity and paternity policies, which could include an enhancement of the statutory. Take note: after 6 April 2026, paternity leave is a day-one right for employees.

From 6 April 2024, all employees in the UK, not just parents or carers, will have the legal right to request flexible working from their first day of employment. This means employees can ask to make permanent changes to their contract, such as adjusting their working hours, work location, or work pattern, right from the start of their job. 

Unfair dismissal occurs when an employee is terminated without a fair reason, or the proper process is not followed. Employees with two or more years of continuous service can bring a claim to an employment tribunal if they believe they have been unfairly dismissed. It's worth nothing that this qualifying period will be reduced to six months from 2027, under the Employment Rights Act.

Workplace disputes can often be resolved through internal procedures, such as grievance or disciplinary processes. If unresolved, disputes can be referred to ACAS (Advisory, Conciliation, and Arbitration Service) for early conciliation, or brought to an employment tribunal.

Employees are entitled to Statutory Sick Pay (SSP) if they are off work for four or more consecutive days. But from 6 April 2026, this waiting period will be removed and SSP will be payable from the first day of sickness absence.

Employers may have their own sick leave policies, which could include enhanced pay or absence management procedures to handle long-term sickness.

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