The minimum wage for workers aged 21 and over has been £12.71 an hour since April 2026, sick pay now starts from day one, and since 1 October staff have six months to bring most tribunal claims.
You're probably breaking employment law and you don't even know about it.
What happens if you underpay the minimum wage?
If you're underpaying your employees, HMRC can make you pay back the shortfall, plus penalties.
HMRC's guidance for employers and the minimum wage says its officers can check at any time, and that if HMRC finds you have not been paying the correct rates, any arrears have to be paid back immediately. There is also a fine, and employers can be publicly named.
What are the minimum wage rates in 2026?
The minimum wage rates since April:
- Aged 21 and over: £12.71 an hour
- Aged 18 to 20: £10.85 an hour
- Under 18s and apprentices: £8.00 an hour
These match the National Minimum Wage and National Living Wage rates on gov.uk from April 2026. The same page says apprentices aged 19 or over who have completed the first year of their apprenticeship get the rate for their age instead.
What else has changed in employment law?
But it's not just pay. A lot has changed in employment law too:
- Sick pay is now payable from day one, not day four
- Paternity leave and unpaid parental leave are now day-one rights
- Since 1 October, staff have six months to bring most employment tribunal claims, instead of three
HMRC's guidance on sickness absences around 6 April 2026 says waiting days no longer apply from 6 April 2026, and Statutory Sick Pay is payable from the first full day of sickness absence. The gov.uk guide to paternity leave says employees are eligible for the leave from the first day of employment. Statutory Paternity Pay still has its own service and earnings conditions.
Are your contracts and payroll up to date?
If you're hiring and you're not sure your contracts and payroll are up to date, get in touch and I can help.
If you employ staff, the National Insurance relief most employers can claim is in do not miss the £10,500 National Insurance relief. Whether someone counts as an employee at all is covered in are your subcontractors really subcontractors.
Employment rules depend on each worker's age, contract and circumstances, so this is general information rather than advice on your position. If you are unsure what applies to your staff, talk to us.
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Book a discovery callCommon questions
£12.71 an hour for workers aged 21 and over, £10.85 for 18 to 20 year olds, and £8 for under 18s and apprentices. See [National Minimum Wage and National Living Wage rates](https://www.gov.uk/national-minimum-wage-rates).
If HMRC finds an employer has not been paying the correct rates, any arrears have to be paid back immediately. There is also a fine, and the employer can be publicly named. See [employers and the minimum wage](https://www.gov.uk/national-minimum-wage/employers-and-the-minimum-wage).
Yes, from 6 April 2026. HMRC's guidance says waiting days no longer apply and SSP is payable from the first full day of sickness absence. See [sickness absences that start before and end on or after 6 April 2026](https://www.gov.uk/guidance/sickness-absences-that-start-before-and-end-on-or-after-6-april-2026).
Yes. The gov.uk guide says employees are eligible for Paternity Leave from the first day of employment. Statutory Paternity Pay has separate conditions, including 26 weeks of continuous service. See [paternity pay and leave: eligibility](https://www.gov.uk/paternity-pay-leave/eligibility).
Simon Jacobs is a Chartered Tax Adviser (CTA · ACA) and PwC trained, founder of SRJ International. He advises UK business owners on tax, profit extraction and exit. Read his full profile →
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