After extensive debate in Parliament, the Employment Rights Act 2025 officially became law in December last year. While the Act itself is already in force, many of its most impactful provisions will be introduced in stages, with a major wave of changes taking effect in April 2026.
These reforms represent one of the most significant overhauls of UK employment law in recent years. Employers should now be turning their attention to what’s coming next — and how to prepare.
Below, we break down the key changes due to take effect from April 2026 and what they are likely to mean in practice.
Statutory Sick Pay: A New Approach from Day One
One of the most notable reforms under the Act is the overhaul of Statutory Sick Pay (SSP).
From 6 April 2026, eligibility for SSP will widen considerably. The lower earnings limit requirement will be removed, along with the current three waiting days before payment begins. Instead, SSP will become a day-one entitlement for all workers.
Payment will be calculated as either:
While this change improves access to sick pay, it also creates a potential reduction for some lower-paid workers. For example, individuals earning just above the lower earnings threshold may receive slightly less SSP than under the current flat-rate system.
The Department for Work and Pensions has confirmed that transitional guidance will be available for employers managing employees who are already on sick leave when the new rules come into force.
With SSP becoming more accessible, employers will need to place greater emphasis on managing absence effectively. Preventative measures such as monitoring workload, supporting employee wellbeing, and proactively managing long-term sickness will be more important than ever.
A New Fair Work Agency
April 2026 will also see the launch of the Fair Work Agency (FWA), a new enforcement body designed to streamline and strengthen workers’ rights.
The agency will have powers to:
Where a claim is successful, the FWA will also be able to recover its costs from the employer.
This marks a significant shift away from reliance on individuals bringing claims alone and increases the likelihood of enforcement action where non-compliance is identified.
Higher Penalties for Collective Consultation Failures
Collective consultation obligations apply when employers propose large-scale redundancies or fire-and-rehire exercises affecting 20 or more employees.
Under the Employment Rights Act 2025, the maximum protective award for failing to consult properly will double — increasing from up to 90 days’ pay to up to 180 days’ pay per affected employee.
This change substantially raises the financial risk of getting collective processes wrong and reinforces the importance of early planning, clear communication, and lawful consultation practices.
Day-One Rights to Paternity and Parental Leave
Another key reform coming in April 2026 is the removal of qualifying periods for both paternity leave and unpaid parental leave.
These forms of leave will become available from the first day of employment, bringing them into line with maternity leave and other family-related entitlements.
While eligibility will expand, existing notice requirements will remain unchanged. Employees will still be expected to provide the required statutory notice when requesting leave.
Employers should review their family leave policies and onboarding processes to ensure managers understand the new rules.
Stronger Protections Around Sexual Harassment Disclosures
The Act also strengthens protections for individuals raising concerns about sexual harassment.
Disclosures relating to sexual harassment — whether past, ongoing, or anticipated — will now qualify as protected disclosures. This means employees who raise such concerns in the public interest, and with a reasonable belief that they are true, will be protected from detriment or dismissal.
Any dismissal connected to a qualifying disclosure in this area would be automatically unfair, further emphasising the need for robust reporting procedures and a strong workplace culture.
Changes Affecting Trade Unions
From April 2026, employers will face tighter restrictions once an application for trade union recognition has been accepted by the Central Arbitration Committee.
The Act also modernises the balloting process, introducing electronic balloting and making email the default method for communicating ballot outcomes.
These changes are designed to improve accessibility and efficiency in union recognition processes and will require employers to be especially careful during recognition campaigns.
What Should Employers Be Doing Now?
The reforms taking effect in April 2026 will have wide-ranging implications for policies, procedures, and day-to-day management practices.
Now is the time to:
Early preparation will help minimise disruption and ensure compliance when the new rules take effect.
For a deeper dive into how the Employment Rights Act 2025 could affect your organisation, catch up on our recent GLU webinar and expert insights.