Compliance
Navigating the New Employment Rights and Benefits Reforms: What Workers Should Know
Landmark reforms from April 2026 bolster workers’ rights, including improved sick pay, parental leave, workplace expense reliefs and more—here’s how they impact you.
By NomadicTax Research Team • 5-7 min read • May 14, 2026
## Key Reforms Effective from 6 April 2026
### *Statutory Sick Pay (SSP)*
- SSP now begins **from the first full day of sickness absence**, removing the three-day waiting period. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
- The **lower earnings limit** has been removed for SSP eligibility—meaning even low-paid employees are covered. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
### *Parental Leave & Paternity Leave*
- New parents get **day-one rights** to paternity leave in a new job; the previous requirement to wait six months is gone. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
- Unpaid parental leave eligibility now applies from day one, benefiting employees who then change jobs or join new roles. ([gov.uk](https://www.gov.uk/government/news/millions-of-workers-get-new-access-to-sick-pay-and-parental-leave?utm_source=openai))
### *Workplace Benefits Relief Expansion*
From 6 April:
- Employers may **exempt reimbursements** (without tax or NICs) for eye tests (and required glasses), flu vaccinations, and homeworking equipment. These were taxable when reimbursed under old rules. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
### *Removal of relief for non-reimbursed homeworking expenses*
Employees can no longer claim income tax deductions for additional household costs incurred when working from home, whether actual expense or fixed rate, unless reimbursed by the employer. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
## How These Changes Affect You
| Situation | Old Rule | New Rule from April 6, 2026 |
|---|---|---|
| Low-paid employee with short sickness absence | No SSP until day four, plus earnings threshold applies | SSP from day one, regardless of earnings (if employed) |
| New father starting a job | Must wait six months to qualify | Paternity leave from day one, even in first day of job |
| Claiming expenses for homeworking or eye tests | Reimbursement taxable; unreimbursed costs may be deducted (if eligible) | Only reimbursements by employers exempt; unreimbursed deductions removed |
## Actionable Advice for Workers and Employers
- **Workers**: Ensure your employer’s payroll policy is updated, especially for SSP, leave entitlement and expense reimbursements. Speak up if not.
- **Employers**: Update payroll systems, contracts and staff handbooks to reflect these new entitlements; ensure budgeting for reimbursed expenses under the new tax/NIC exemption regime.
- **Documentation**: Maintain evidence—receipts, prescriptions, whether equipment/vaccinations are required—to support claims where exemptions apply.
- **Seek guidance**: Review HMRC Employment Income Manual and government guidance on “New employment rights: Guidance for business and workers”. ([gov.uk](https://www.gov.uk/government/publications/employer-bulletin-april-2026/april-2026-issue-of-the-employer-bulletin?utm_source=openai))
## Example scenario
Jane starts a new job on 7 April 2026 and becomes ill on her first day. Under the new regime, she is eligible for SSP immediately (from Day 1), even though she hasn’t been in the job for long. If her employer reimburses her for a DSE eye test or homeworking desk setup, she will not face tax or NICs so long as it meets the rules.
These reforms modernise workplace rights, support those in insecure jobs, and reflect changing work patterns—including remote and hybrid working. For many, this will mean better protection, less uncertainty, and fairer treatment.