Three countries rewrote the rules for global employers in the first week of April, and if you manage a distributed team, the compliance clock is already ticking. The UK’s Employment Rights Act 2025 went live on April 6, making paternity leave and sick pay day-one entitlements. India’s 50% basic wage rule is now operational, reshaping payroll costs for every company with Indian employees. And Singapore expanded paid parental leave to 30 weeks total. Today’s employment rights changes affect how you hire, pay, and retain talent across three continents.
UK Employment Rights Act 2025: Day-One Rights and the Fair Work Agency Are Live
The biggest package of UK employment rights changes in a generation took effect on April 6, 2026. If you employ anyone in the United Kingdom, here is what changed and what you need to do about it this week.
Day-one paternity and parental leave. Statutory paternity leave is now available from an employee’s first day of work, removing the previous 26-week qualifying period. The same applies to unpaid parental leave, which previously required one year of continuous service. The notice period for paternity leave dropped from 15 weeks to 28 days. Note: statutory paternity pay still requires 26 weeks of continuous employment. (Source: UK Government)
SSP from day one. Statutory Sick Pay is now payable from the first day of sickness, eliminating the old three-day waiting period. The lower earnings limit has also been removed, so workers who previously earned too little to qualify now get coverage. The rate is £123.25 per week or 80% of average weekly earnings, whichever is lower. (Source: Baker McKenzie)
Fair Work Agency launches. On April 7, the UK’s new Fair Work Agency (FWA) went live, merging the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority, and HMRC’s National Minimum Wage enforcement into a single body. The FWA can now investigate employers proactively, without waiting for a worker complaint. Penalties for underpayment run at 200% of the amount owed, with a maximum of £20,000 per worker. The agency also takes on enforcement of holiday pay for the first time. (Source: CIPD)
Collective redundancy penalties doubled. For dismissals from April 6 onward, the maximum penalty for failing to consult on collective redundancies jumped from 90 days’ pay to 180 days’ pay per employee. If you are planning headcount reductions in the UK this quarter, get legal advice before you start. (Source: Personnel Today)
If you hire through an EOR in the UK, confirm with your provider that their contracts and payroll systems reflect the new UK employment laws. If you manage UK payroll directly, audit your HRIS by Friday to ensure SSP and leave entitlements are updated.
India’s 50% Basic Wage Rule Reshapes Payroll Costs
India’s four Labour Codes became operational on April 1, and the biggest hit for employers is the 50% basic wage rule. Under the Code on Wages, an employee’s basic pay plus dearness allowance must now equal at least 50% of total Cost-to-Company (CTC). Many Indian employers historically kept basic pay between 30% and 40% of CTC to reduce statutory contributions. That strategy is no longer legal. (Source: India Ministry of Labour)
The math is straightforward but painful. If an employee’s basic salary rises from ₹30,000 to ₹50,000, Provident Fund contributions jump from ₹3,600 to ₹6,000 per month, and the employer matches. Gratuity liabilities increase at exit because gratuity is calculated on basic salary. Net result: employer costs rise roughly 5-15% depending on current salary structures. (Source: India Policy Hub)
If you have employees in India, your payroll team needs to restructure CTC breakdowns immediately. Review your India payroll compliance setup and confirm that Provident Fund calculations reflect the new base. Implementation is state-dependent, so check which states have notified the rules.
Singapore Expands Parental Leave to 30 Weeks Total
From April 1, 2026, Singapore expanded its Shared Parental Leave (SPL) scheme to 10 weeks, up from 6 weeks under the previous phase. Combined with 16 weeks of Government-Paid Maternity Leave and 4 weeks of Government-Paid Paternity Leave, working parents of Singapore citizen children now get up to 30 weeks of paid parental leave in the child’s first year. (Source: People Matters Global)
The government funds all 10 SPL weeks at up to SGD 2,500 per week. Each parent gets 5 weeks by default, though families can reallocate between parents. Employees must give employers at least 4 weeks’ notice. The leave must be used within 12 months of the child’s birth. (Source: Singapore Government)
For startups hiring in Singapore, this does not increase your direct payroll costs since the government reimburses. But you need to plan for coverage gaps, especially on small teams. Update your Singapore leave policies and make sure your HRIS can track SPL allocations between parents.
China Enforces Age Cap on Foreign Worker Permits
China is now strictly enforcing the age-60 cap for Category B work permits. Since February 2026, renewals for foreign professionals aged 60 and above are being systematically rejected across major cities. Previously, enforcement was inconsistent, and many experienced professionals continued working past 60 on renewed permits. (Source: China Briefing)
If you have senior foreign staff in China approaching 60, start succession planning now. The rejection rate is high and there is no reliable appeal path. Shanghai has also tightened documentation requirements for all work permit applications, adding stricter review standards for the 60-point scoring system. For companies hiring in China, factor in longer processing times through Q2.
Quick Hits
- UK National Living Wage rises to £12.71/hour from April 1 for workers aged 21+, a 4.1% increase affecting roughly 2.7 million workers. (Source: UK Government)
- UK whistleblowing expanded: Disclosures of sexual harassment now qualify as protected whistleblowing disclosures from April 6. (Source: Personnel Today)
- UK holiday pay record-keeping: Employers must now maintain records of annual leave and holiday pay from April 6. The Fair Work Agency can request these during inspections. (Source: Freshfields)
Employment Rights Changes: Action Items This Week
If you hire in the UK: Audit your HRIS for day-one paternity leave and SSP entitlements by April 11. Update payroll to reflect the £12.71 National Living Wage. Begin keeping holiday pay records immediately, as the Fair Work Agency can inspect without prior complaint. Review your UK leave policy to incorporate day-one rights.
If you have employees in India: Restructure CTC breakdowns so basic pay meets the 50% threshold. Recalculate Provident Fund and gratuity liabilities. Check which states have notified Labour Code rules, as implementation varies.
If you hire in Singapore: Update leave policies to reflect 10-week Shared Parental Leave. Register for the Government-Paid Leave portal. Plan team coverage for employees taking extended leave.
If you employ foreign workers in China: Review the ages of all Category B permit holders. For anyone approaching 60, begin transition planning immediately. Budget for longer work permit processing times in Q2.
Stay Ahead of Global Employment Rights Changes
Four countries changed their employment rules in the same week. That is the reality of managing a distributed workforce in 2026. If tracking compliance across every jurisdiction sounds overwhelming, Asanify’s Global EOR handles multi-country employment law, payroll, and leave management so you can focus on building your team.
Frequently Asked Questions
What are the UK day-one employment rights that took effect in April 2026?
From April 6, 2026, UK employees are entitled to statutory paternity leave and unpaid parental leave from their first day of employment, with no qualifying period. Statutory Sick Pay is also payable from day one of sickness, removing the previous three-day waiting period. However, statutory paternity pay still requires 26 weeks of continuous employment.
How does India’s 50% basic wage rule affect employer costs?
Under India’s Code on Wages, basic pay must now be at least 50% of total CTC. Since Provident Fund and gratuity are calculated on basic salary, higher basic pay increases employer contributions by roughly 5-15%. Companies that previously kept basic pay at 30-40% of CTC will see the largest cost increase.
Does Singapore’s new parental leave cost employers more?
No direct payroll cost increase. The Singapore government funds all 10 weeks of Shared Parental Leave at up to SGD 2,500 per week. Employers bear indirect costs like temporary coverage and productivity gaps, especially for small teams with fewer than 20 employees.
What happens if a foreign worker in China turns 60?
China now strictly enforces the age-60 cap for Category B work permits. Renewals for professionals aged 60 and above are being systematically rejected. There is no reliable appeal process, so companies should begin succession planning well before an employee reaches 60.
Do I need an EOR to comply with these employment rights changes?
Not necessarily, but an Employer of Record simplifies compliance when you hire in multiple countries. An EOR handles local payroll, leave entitlements, and regulatory updates so your team does not have to track changes across every jurisdiction. For companies with fewer than 10 employees in any single country, an EOR is typically more cost-effective than setting up a local entity.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
