The Employment Rights Act 2025 will see certain changes coming into force in April 2026, many of which will have a direct and immediate impact on Employers’ costs, policies, and risk exposure.
The Employment Rights Act 2025 (“ERA”) received Royal Assent on 18 December 2025. Its wide ranging reforms are being introduced in phases through to 2027, following the Government’s 2025 roadmap, Implementing the Employment Rights Bill: Our Roadmap for Delivering Change.
The following changes will be coming into effect in April this year.
From 6 April 2026, the SSP eligibility is expected to expand significantly. The Lower Earnings Limit and the requirement to serve three unpaid waiting days will be removed. All workers will qualify for SSP from the first day of sickness absence, paid at 80% of usual earnings or the statutory flat rate, whichever is lower.
Currently, SSP is only available to employers earning at or above the Lower Earnings Limit (£125 per week in 2025/26) meaning up to 1.3 million low paid workers are excluded. In addition, no SSP is payable for absences lasting fewer than four days.
The Department for Work and Pensions has released guidance to support the transition:
Takeaway Point: Expect higher SSP costs and an increase in short-term sickness claims. Absence management policies and payroll systems should be reviewed in advance of April 2026.
From April 2026, with the precise commencement date yet to be confirmed, a new Fair Work Agency (FWA) will be established, consolidating the functions of several existing enforcement bodies, including:
The FWA will act as a single enforcement body for employment rights and will have extensive powers, including the ability to:
The Low Pay Commission estimates that 19.4% of workers paid at or around the minimum wage were underpaid in 2024 (around 371,000 employee jobs).
Takeaway Point: The risk of investigation and enforcement will increase. Employers should ensure full compliance with wage, working time, and employment agency obligations.
From April 2026, subject to confirmation of the precise commencement date, the ERA strengthens collective redundancy protections by increasing the maximum protective award for failure to consult from 90 days’ pay to 180 days’ pay, substantially increasing employer liability.
This change is intended to deter employers from deliberately avoiding their collective consultation obligations and taking the financial risk of facing claims for 90 days’ pay. Employment Tribunals will retain discretion to make awards that are ‘just and equitable’, taking into account the seriousness of the employer’s default. Case law has established that Employment Tribunals should start at the maximum award and look at the level of compliance (if any) to reduce the award.
Takeaway Point: Non-compliance in redundancy situations will carry far greater financial risk. Early legal advice and robust consultation processes will be essential.
Employees must have 26 weeks’ service to qualify for Paternity Leave and for one year’s service to qualify for unpaid Parental Leave.
From 6 April 2026, the ERA will remove these qualifying periods, making both day-one rights, subject to notice requirements. However:
To support newly eligible parents, a transitional arrangement will allow employees to give shorter notice (28 days) so leave can be taken from 6 April 2026. Employees gaining new rights on that date may submit notices from 18 February 2026.
Therefore, provisions in force from 6 April 2026:
Under transitional provision, the new Paternity Leave rules will apply only in relation to:
An estimated 30,000 additional employees will become eligible for Paternity Leave each year.
Takeaway Point: Family leave policies will need updating, and managers should be trained to handle increased requests from new starters.
From April 2026, subject to confirmation of the precise commencement date, the ERA confirms that disclosures relating to sexual harassment can qualify as protected disclosures for whistleblowing purposes.
Workers who make such disclosures will be protected from:
Takeaway Points: Whistleblowing, grievance, and anti-harassment procedures should be aligned, and managers trained to respond appropriately to disclosures.
From April 2026, subject to confirmation of the precise commencement date:
Takeaway Point: Organisations with recognised trade unions or those facing a claim for recognition should ensure management teams understand the changes to the law.
If you have any questions on any of the upcoming changes or need help with reviewing and updating your policies, please contact a member of the team here.
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