The Employment Rights Act 2025 signifies one of the most significant overhauls in employment rights in decades. With the Act having received royal assent, these changes will begin to take effect in phases with some major provisions being introduced in April 2026. The following Article will outline what will be changing in April, the implications that this will have for businesses, and what employers can do to tackle this shift.
Statutory Sick Pay (SSP) Changes April 2026
The current 3 day waiting period and Lower Earning Limit (LEL) are set to be removed from April 6 2026, meaning that employees with be entitled to statutory sick pay from their first day of sickness, and regardless of their earnings.
The way in which SSP payments will be calculated has changed. Payment will be calculated as the lower 80% of a worker’s typical earnings or the statutory SSP flat rate – whichever is lower. The SSP rate is expected to be £123.25 per week and lower earning to be£129 per week, based on the 2026-27 tax year.
Day One Paternity and Unpaid Parental Leave Changes April 2026
From 6 April 2026, the current 26-week qualifying service requirement to take paternity leave will be removed, with employees being able to give notice of their leave from day one. This aligns paternity leave service requirements with those for maternity leave, and will apply to babies born on or after 6 April, or to adoptions which take place after that date.
The current one-year service requirement to take unpaid parental leave will also be abolished, becoming a day-one statutory entitlement.
Furthermore, the restriction on taking paternity leave directly after shared parental leave will be removed. However, it is also worth noting that the notice employees are required to give to take both form of leave remains unchanged.
Enhanced Protection for Whistle-blowers
Complaints relating to sexual harassment will now be treated as protected disclosures so long as certain conditions are met. Therefore, employees who ‘blow the whistle’ on sexual harassment benefit from protections against unfair dismissal and adverse treatment.
Collective Redundancy Protective Award
Currently, where an employer fails to meet statutory requirements for collective redundancies of 20 for more dismissals an Employment Tribunal may award a protective award of 90 days gross pay per employee. From April, this maximum award will increase to 180 days pay.
Fair Work Agency (FWA)
A new Fair Work Agency will be established in April. This is a government agency whose primary function is to enforce workplace rights, investigate non-compliant employers, provide guidance to workers and issue penalties where necessary.
Trade Union Recognition Process
Several measures are being brought in to make the statutory recognition process for trade unions simpler. For example, a simple majority of workers are required to vote rather than the previous 40% bargaining unit support requirement. Restrictions that would deter the use of e-balloting have also been removed, and unions must no longer demonstrate that the majority of workers in the bargaining unit are likely to vote in support of recognition.
These changes to SSP will undoubtedly increase for costs for employers, particularly where employees fall ill for short periods of time. Employers should prepare for this by taking this increased cost into consideration when budgeting SSP spend. Payroll calculations will become more sophisticated and should be adjusted accordingly. Ensuring clear policies for reporting absence are established will be key, to enable accurate record keeping and to deter false reports of sickness by employees.
It now becomes more crucial for employers to take steps to reduce absence caused by sickness where possible. For instance, managing workloads and working conditions to prevent burnout, or implementing clear policies to deter employees from falsely reporting sickness may contribute to fewer absences and reduced cost.
Day One Paternity and Unpaid Parental Leave
Employers should ensure that robust parental and paternity leave policies are implemented and amend any existing policies accordingly to ensure compliance. Management should be updated and trained accordingly to handle an increase in leave requests from employees and ensure compliance.
Enhanced Protection for Whistle-blowers
With there now being increased potential for a qualifying disclosure to be made, employers should ensure whistleblowing polices are reviewed and in place. As always, the need for clear, written documentation of grievance handling and formal investigation is crucial to avoid informal handling of such matters.
Collective Redundancy Protective Award
This increase in protective award creates more financial risk for employers undergoing restructuring. Employers should carefully consider their approach to collective consultation and ensure compliance with statutory requirements
Fair Work Agency (FWA)
The introduction of this government body brings enhanced scrutiny to employers and their workplace practices. The FWA can proactively investigate workplaces and so if an employer is approached, they should be armed with documentation to demonstrate legal compliance. This means regular review of payroll and HR policies is necessary to keep on top of this enhanced surveillance.
Trade Union Recognition Process
With union recognition becoming more accessible, this is likely to lead to an increase in union memberships. Developing strong relationships with unions will be advantageous for employers in order to understand and reduce factors which can lead to industrial action. Employers should ultimately look to have an active understanding of common employee grievances and complaints in their trade.
The Importance of HR Documentation for
Employment Law Changes 2026
As ever, documentation and recording are essential for employers. A paper trail acts as a foundation for a transparent and compliant investigation process, supports accountability, and can prove crucial to protect against future claims. Therefore, by implementing consistent and accurate documentation employers can feel safe in the knowledge that they are armed with the necessary evidence to protect against future claims and demonstrate compliance.
Conclusion
Whilst these upcoming shifts in the law undoubtedly provide more support, guidance and flexibility for employees, they require early preparation, clear documentation and budgeting from an employer’s point of view. By taking the time now to review and implement the necessary policies, consider the financial implications, and train management, businesses can keep on top of the increased scrutiny introduced by the FWA and reduce uncertainty when we reach April.