Taking on staff in 2026: what the law expects of you
Hiring your first employee is a big step. It also brings legal duties. UK employment law for small business can feel like a maze, but most of it comes down to treating people fairly, paying them properly, and keeping them safe. This guide walks you through the core workplace rules in plain English, so you know what to put in place before someone starts.
One important note up front. Rates, thresholds and dates change often, and 2026 is a year of reform. So we point you to official sources rather than quoting figures that may go out of date. Always check the current numbers before you act.
You do not need to be an HR expert to get this right. You need a clear contract, fair pay, a safe workplace, and a habit of checking the official guidance before you make a decision.
Contracts: the written statement of employment particulars
From the very first day, every employee (and most workers) must get a written statement of employment particulars. This is a legal document, not a "nice to have". In plain terms, it is a written summary of the main terms of the job.
It should cover things like:
- Job title and start date
- Pay, and how often it is paid
- Working hours and place of work
- Holiday entitlement
- Sick pay and notice periods
You must give the main statement on or before the employee's first day. Some extra details can follow within two months. A clear contract protects you as much as the worker, because it sets expectations on both sides.
Paying people: minimum wage, hours and holidays
National Minimum and National Living Wage
You must pay at least the legal minimum for your worker's age. The National Living Wage applies to older workers, and the National Minimum Wage applies to younger workers and apprentices. These rates usually rise each April. Underpaying, even by accident, can lead to fines and being named publicly, so check the current rate on GOV.UK before you set pay.
Working time and rest breaks
Working time rules limit how long staff can work and protect their right to rest. In general, most adult workers:
- Should not work more than 48 hours a week on average, unless they choose to opt out in writing
- Are entitled to a rest break during the working day
- Should get daily and weekly rest periods
Holiday entitlement
Almost all workers build up paid holiday from day one. Most full-time staff are entitled to a minimum amount of paid annual leave each year, and part-time staff get a fair share based on the hours they work. Holiday pay must reflect a worker's normal pay, including regular overtime in many cases. ACAS has clear calculators and guidance if you are unsure.
When staff are off sick: Statutory Sick Pay
Statutory Sick Pay (SSP) is the minimum you must pay eligible employees when they are off sick. There are rules about how long someone must be ill before it applies and how long it can be paid. The 2026 reforms are widening sick pay rights, so the old waiting period and earnings rules may not apply by the time you read this. Confirm the current SSP rules and rate on GOV.UK.
Pensions: automatic enrolment
If you employ staff, you almost certainly have pensions auto-enrolment duties. This means you must put eligible workers into a workplace pension scheme and pay into it yourself. The Pensions Regulator sets out exactly what you must do and by when. Missing your duties can lead to penalties, so set up your scheme early. These employer contributions add to your wage bill, which links closely to the wider employer costs, National Insurance and tax changes you should plan for.
Health and safety: keeping people safe
As soon as you have staff, you have legal health and safety duties. The two that catch out small firms most often are risk assessments and insurance.
- Risk assessment. You must look at what could cause harm in your workplace and take sensible steps to prevent it. If you employ five or more people, you must write your assessment down.
- Employers' liability insurance. Most employers must have this cover by law, usually to a minimum amount. You can be fined for every day you are not properly insured.
You also need to give staff basic health and safety information and, where needed, training. The Health and Safety Executive (HSE) has free templates to help.
Treating people fairly: equality and discrimination
The Equality Act protects workers from unfair treatment. You must not discriminate because of a protected characteristic, which is the legal term for things like age, sex, race, disability, religion, pregnancy and more. This applies at every stage, from the job advert and interview through to pay, promotion and dismissal. Good, consistent processes are your best defence if a decision is ever challenged.
Right to work: who you can legally employ
Before anyone starts, you must carry out a right-to-work check to confirm they are allowed to work in the UK. Doing this correctly gives you a "statutory excuse", which protects you from heavy civil penalties if it later turns out the person could not legally work. Keep dated copies of the evidence. GOV.UK explains the approved ways to check, including online checks.
The direction of travel: the Employment Rights Act 2024
The biggest change shaping 2026 is the Employment Rights Act 2024. Its measures are being phased in over time rather than all at once. The general direction is towards stronger day-one rights, meaning some protections that once needed long service will apply much sooner.
At a high level, the reforms touch on areas such as:
- Protection from unfair dismissal arriving earlier in employment
- Stronger sick pay and family-related rights
- Tighter rules on "fire and rehire" and zero-hours practices
Because timings are still being confirmed, do not assume a rule has started or stayed the same. Check the current position on GOV.UK and ACAS before you change a policy or a contract.
A simple starting checklist
- Issue a written statement of particulars on or before day one
- Set pay at or above the current legal minimum
- Sort out pension auto-enrolment and employers' liability insurance
- Do a risk assessment and run right-to-work checks
- Keep written records of every key decision
Training your team well also reduces risk, and there is support available. It is worth seeing what funding for training and apprenticeships you might claim to build skills affordably.
Frequently asked questions
Do I really need a written contract for one part-time worker?
Yes. The duty to give a written statement of employment particulars applies to employees and most workers from day one, however few hours they do. A clear written agreement also protects you if a dispute arises later.
What are "day-one rights" and why do they matter in 2026?
Day-one rights are protections that apply from the moment someone starts, rather than after a qualifying period of service. The Employment Rights Act 2024 is expanding these. It matters because you may have duties to a new starter much sooner than under the old rules, so check the current position before you act.
Where can I find the official, up-to-date rules and rates?
Use GOV.UK for the law, wage rates and right-to-work checks, ACAS for fair process and free templates, and the HSE for health and safety. The Pensions Regulator covers auto-enrolment. These are the trusted sources to check before any decision.
This article is general information, not legal advice. Employment rules and rates change, and the 2026 reforms are still being phased in. Always confirm the current position with GOV.UK, ACAS and the HSE, and take professional advice for your specific situation. Want practical UK small business updates like this in your inbox? Join the Tendarix newsletter.
