A spring crop of legal reforms

This article first appeared on Insurance Business

2025 saw the government pass several pieces of new legislation, including its flagship Employment Rights and Renters’ Rights Acts. Like many new laws, however, some time is allowed before most of the measures come into force. So, 2026 will see various developments that businesses and landlords, in particular, will need to be aware of.

Employment action

The first measures of the Employment Rights Act, easing the requirements for legally organising industrial action came into force this month, but further reforms that are relevant to many more SMEs will be introduced later in the year.

In April, changes to Statutory Sick Pay will take effect, removing the lower earnings limit and the waiting period, making many more employees eligible for the benefit. At the same time but affecting far fewer employees, Bereaved Partners’ Paternity Leave will be introduced to allow up to 52 weeks’ unpaid leave where the mother or ‘primary adopter’ dies

Day-one rights to Paternity and Unpaid Parental Leave also come into force, while stronger protections for whistleblowing about sexual harassment will be applied. April will also see the maximum protective award for breaching consultation requirements double, from 90 to 180 days’ pay for each employee affected.

The Employment Rights Act has much more coming down the line, with further measures being phased in later in 2026 and on into 2027.

Rental reforms

If April is the month when employers will need to be on their toes, then May will see the changes rung for landlords and their tenants. Many of the reforms being introduced by last year’s Renters’ Rights Act will come into force on May 1st.

From that date, Assured Shorthold Tenancies will automatically become rolling, ‘monthly periodic’ tenancies, and Section 21 notices will be abolished. Other measures that will apply from that date are limits to the amount of rent in advance that can be charged, a ban on using rental bidding wars to drive up rents, and tougher rules to combat discrimination.

The tighter and clearer rules on increasing rent, using a Section 13 notice, will also come into force and landlords will need to issue tenants with a new information sheet and updated terms and conditions reflecting the changes, by the end of May.

Like the employment law reforms, this is just the lightest summary of the changes being introduced, so individual landlords and employers should seek advice about their own specific circumstances, to ensure that they stay the right side of the law.

Further changes for tax and payments

Landlords and the self-employed may also be affected by the implementation of Making Tax Digital for Income Tax. From April, anyone who is self-employed or lets property and generates more than £50,000 annual income from it, needs to keep digital records so that they can submit quarterly updates of their income and expenses, using software approved by HMRC.

All this may seem like a lot for businesses to take on board, but there’s good news for SMEs too. The government is cracking down on slow and late payment practices, to protect smaller businesses whose sustainability can be threatened by the pressures such behaviour can put on their cashflow.

So, it looks like our legal advice helplines will be exceptionally busy over the coming months, as business owners adapt to all these changes and update their policies in order to stay compliant.

This is just the tip of a particularly large iceberg, this year, but ARAG’s commercial policyholders have access to all the tools, guidance and advice they may need to make sure they head into summer well on track.