Employment Rights Act 2025 changes from April 2026: key actions for employers

April 2026 has brought the first major implementation phase of the Employment Rights Act 2025, alongside a range of related legislative reforms. Together, these updates represent one of the most significant shifts in UK employment law in a generation, with immediate operational consequences for employers across all sectors.

While some of the headline grabbing reforms, including changes to unfair dismissal rules, are still scheduled for future phases, the April 2026 changes already affect day to day workforce management. Most employers have now needed to revisit policies, payroll systems and manager training to ensure ongoing compliance.

Below is a summary of the key changes now in effect since 6 April 2026, together with practical points for employers.

1. Statutory Sick Pay: expanded entitlement and day one payment

As of 6 April 2026, Statutory Sick Pay (SSP) is now payable from the first day of sickness absence, following the abolition of the previous three waiting days. The lower earnings limit has also been removed, meaning SSP is now available to all employees regardless of earnings.

For lower paid employees, SSP is payable at the lower of:

the standard SSP flat rate of £123.25 or
80% of the employee’s average weekly earnings.

Practical impact and tips

Employers are already seeing increased SSP costs, particularly those organisations with large part time or lower paid workforces, patterns of short term or intermittent absence and limited enhanced sick pay provisions. Even with the limited earnings that SSP provides, employees may be more inclined to take sporadic sickness leave leading to greater operational cost for the business.

Employers should consider the following:

Review and update sickness absence and ill health policies to ensure they remain fair and proportionate.
Ensure payroll systems have removed waiting day logic and earnings thresholds.
Train managers to handle short term absence consistently and understand eligibility requirements including a good return to work process.
Check whether contractual sick pay schemes still operate as intended alongside the new SSP rules.
Ensure focus is on communication with staff when they are unwell to provide a positive response to wellbeing concerns and encourage a supported return to work.
Review capability processes specifically when considering engagement with medical professionals and occupational health referrals.

2. Day one rights to paternity leave and unpaid parental leave

Since 6 April 2026, statutory paternity leave is a day one right. Unpaid parental leave is now available from day one.

The qualifying period for statutory paternity pay remains 26 weeks’ continuous service, a distinction that now requires clear communication. So whilst entitlement to leave is a right from the first day of employment, entitlement to pay is not.

Employers should note that, from 18 February 2026 until 25 July 2026, fathers and birth partners can give 28 days’ notice rather than 15 weeks. This transitional rule ensures that newly eligible fathers and partners could access paternity leave immediately following commencement of the new day‑one entitlement.

Practical impact and tips

Employees can request certain family leave entitlements almost immediately after joining, requiring earlier planning for cover and resourcing.

Employers should adapt to these changes by undertaking the following:

Update family leave policies and templates to reflect day one eligibility.
Train managers on the difference between entitlement to leave and entitlement to pay.
Avoid informal resistance to early requests, which may increase discrimination risk.
Plan how such requests will be managed during probation.
Consider how this may link or impact on shared parental leave policies.

3. Bereaved Partner’s Paternity Leave: new standalone entitlement

The new Bereaved Partner’s Paternity Leave right is now in force. Eligible bereaved fathers or partners may take up to 52 weeks’ paternity leave where the child’s mother or primary adopter dies within the first year after birth or placement.

Practical impact and tips

Although cases are expected to be rare, this is a highly sensitive area carrying significant legal and reputational risk if mishandled. Employers should introduce or update compassionate leave policies to clearly cover this entitlement and ensure that HR and managers understand how the right interacts with other family related leave. All requests should be handed with sensitivity and appropriate records should be kept.

4. Collective redundancy: increased financial exposure

The maximum protective award for failing to comply with collective consultation obligations has doubled from 90 to 180 days’ pay per affected employee. This applies where 20 or more redundancies are proposed within a 90 day period and the employer does not consult in accordance with statutory requirements.

Practical impact and tips

For organisations considering large-scale redundancies, this significantly increases the cost and litigation risk associated with restructuring exercises. Employers should consider the following:

Get early legal advice when redundancies are contemplated.
Keep comprehensive records of consultation steps and timelines.
Avoid treating collective consultation as a procedural formality.
Brief decision makers carefully on when collective obligations apply so that the business is aware and kept abreast of any contemplated redundancies or organisational change that may trigger a collective consultation process.

5. Sexual harassment complaints recognised as whistleblowing disclosures

Since 6 April 2026, disclosures relating to sexual harassment are expressly recognised as qualifying disclosures under whistleblowing legislation. This means workers raising concerns about sexual harassment may now benefit from whistleblowing protections if the statutory test is met.

Practical impact and tips

Complaints previously handled as individual grievances may now carry enhanced protection, increasing litigation risk and awards if dealt with incorrectly. Employers should update whistleblowing policies to reflect the expanded definition and ensure alignment between whistleblowing and grievance processes. Managers should be trained to recognise the difference between a grievance and a whistleblowing complaint as well as when a harassment complaint may also be a protected disclosure.

6. Holiday pay record keeping: new statutory duty

Employers are now legally required to keep adequate records demonstrating compliance with holiday pay and annual leave obligations, with a six year retention requirement.
Records must show:

Leave taken,
How holiday pay was calculated and
Variable pay elements included in holiday pay.

Practical impact and tips

Poor record keeping can now trigger enforcement action and financial penalties. It's recommended to review HR and payroll systems to ensure they produce a clear audit trail. Organisations should review holiday pay calculations for irregular or variable hours workers and ensure to document decisions on classification of atypical working arrangements.

It's also sensible for employers to review their employee privacy notices as well as retention statements to ensure they are compliant with data protection requirements for the retention of employee data.

7. Trade union recognition simplified

From 6 April 2026, the statutory trade union recognition procedure has been significantly simplified. Unions are no longer required to demonstrate most workers in a proposed bargaining unit are likely to support recognition and only a simple majority is now required when recognition is decided by ballot.

Practical impact and tips

These reforms lower the procedural barriers to statutory recognition and increase the likelihood of successful union applications. Employers should expect faster moving recognition campaigns and greater Central Arbitration Committee engagement, particularly in workplaces where union interest is emerging.

Organisations should:

Review employee relations strategies in anticipation of increased recognition activity,
Train managers on the streamlined statutory framework and escalation points and
Maintain accurate workforce records to avoid compliance risks during Central Arbitration Committee proceedings.

8. The Fair Work Agency: a new enforcement landscape

As of 7 April 2026, the new Fair Work Agency has become the single enforcement body overseeing key employment rights including National Minimum Wage (NMW), SSP and holiday pay. The agency has broader investigatory and enforcement powers than previous regulators and has the power to inspect workplaces for compliance, issue notices requiring payment of underpaid statutory entitles, impose penalties, bring civil proceedings and provide legal assistance to workers when appropriate.

Practical impact and tips

Employers should expect more proactive, joined up enforcement rather than purely complaint driven investigations. The following should be considered and implemented:

Assume payroll and holiday pay compliance may be examined proactively.
Ensure policies, systems and records would withstand external inspection.
Address known compliance issues promptly.

9. Annual increases to statutory rates

April 2026 also introduced the following usual increases to statutory payments and compensation limits:

SSP
Family related statutory pay
National Minimum Wage rates
Employment tribunal compensation limits

Practical impact and tips

Employers should ensure that their employees and workers are set to be paid in line with increased rates, and ensure that all policies and contractual documentation are updated as required. For a more in-depth understanding of these changes, please see our recent article here.

Final thoughts

Taken together, the April 2026 reforms have materially rebalanced employer obligations in areas such as absence management, family leave, consultation and regulatory enforcement. The financial and reputational consequences of non compliance are now. significantly higher. Most employers should already have updated employment policies and handbooks, reviewed HR and payroll systems and rolled out targeted training for managers.

If you need support reviewing your documents or understanding the practical effect of these changes on your organisation, please contact our employment team.

Get in touch