Employment Rights Act 2025: Key Changes from April 2026 Explained

Employment Rights Act 2025: Key Changes from April 2026 Explained

While much of the conversation around the Employment Rights Act 2025 (ERA 2025) has focused on future reforms, there are several important changes that came into effect on 6 April 2026 that employers should already be aware of.

These updates cover everything from Statutory Sick Pay (SSP) to family leave, redundancy rules, and workplace protections — all of which could have a direct impact on day-to-day business operations.

Here’s a clear breakdown of what’s changed and what it means in practice.

Statutory Sick Pay (SSP) Changes (Effective 6 April 2026)

One of the most significant updates relates to SSP, with two key changes now in force:

SSP Now Starts from Day One

The previous 3-day waiting period has been removed, meaning eligible employees can now receive SSP from the first day of absence.

Eligibility Expanded to Lower Earners

The lower earnings limit has been removed, meaning more employees now qualify for SSP.

• Employees earning below the threshold (£129 per week from April 2026) are still eligible
• They will receive 80% of their average weekly earnings, or the standard SSP rate — whichever is lower

What this means:
Employers may see an increase in SSP costs, particularly where short-term absence is common, and a wider group of employees will now be entitled to support.

Day-One Rights for Family Leave (From 6 April 2026)

Changes have also been introduced to family-related leave entitlements.

Paternity & Parental Leave

Employees are now entitled to:

• Paternity leave from day one of employment
• Unpaid parental leave from day one

This removes previous service requirements and makes these rights immediately accessible.

New Bereaved Partner Leave

A new entitlement has also been introduced:

• Up to 52 weeks of unpaid leave for employees who lose a partner in connection with childbirth or adoption
• Available from day one of employment
• Must be taken within the first year following the child’s birth or placement

What this means:
Employers should ensure policies are updated and that managers are prepared to handle these situations sensitively.

Stronger Penalties for Collective Redundancies (From 6 April 2026)

There has been a significant increase in the financial risk of non-compliance with collective redundancy rules.

• The maximum protective award has doubled
• Increased from 90 days’ pay to 180 days’ pay per affected employee

Why it matters:
Employers carrying out large-scale redundancies must ensure consultation processes are thorough, compliant, and properly planned.

Whistleblowing Protections Extended

From 6 April 2026, whistleblowing laws have been expanded to include:

Sexual Harassment Disclosures

Employees who report concerns about sexual harassment (affecting themselves or others) are now protected under whistleblowing legislation.

What this means:

• Protection applies where the disclosure is believed to be in the public interest
• Employees are protected from dismissal or unfair treatment as a result

This increases both the legal and reputational importance of handling such reports appropriately.

Trade Union Recognition Changes

The process for trade unions to gain formal recognition has been simplified.

Key changes include:

• Lower thresholds for triggering recognition requests (final details subject to legislation)
• Adjustments to how bargaining units are defined
• Streamlined voting processes

Impact:
It may become easier for unions to secure recognition, particularly in sectors with existing union activity.

Introduction of the Fair Work Agency (From 7 April 2026)

A new enforcement body — the Fair Work Agency (FWA) — has been established to oversee compliance with employment rights.

What the FWA Will Do:

• Enforce National Minimum Wage and labour standards
• Investigate non-compliance
• Issue penalties and take legal action where needed

Timeline:
While established in April 2026, its full enforcement activity is expected to increase throughout 2026 and beyond.

Gender Pay Gap & Menopause Action Plans (Voluntary in 2026)

Larger employers (250+ employees) are being encouraged to introduce:

• Gender pay gap action plans
• Menopause support plans

These are currently voluntary but are expected to become mandatory from 2027.

What this means:
2026 is an opportunity for organisations to prepare and develop meaningful, data-driven strategies.

New Holiday Record-Keeping Requirements (From 6 April 2026)

Employers are now required to keep detailed records of:

• Annual leave entitlement
• Holiday pay calculations
• Payments for unused leave on termination

Key Requirements:

• Records must be kept for 6 years
• Applies to all workers, including part-year and irregular hours staff
• Non-compliance can result in financial penalties

Why it matters:
Accurate record-keeping is now a legal requirement and may be subject to enforcement by the Fair Work Agency.

What Employers Should Do Now

With multiple changes already in force, businesses should take steps to ensure they remain compliant:

• Review and update HR policies and contracts
• Ensure payroll systems reflect new SSP rules
• Prepare for increased record-keeping requirements
• Train managers on new rights and protections
• Monitor further updates expected through 2026–2027

Final Thoughts

The changes introduced in April 2026 mark a significant step in the UK’s evolving employment law landscape.

From expanded sick pay access to stronger protections and increased enforcement, the direction is clear:
greater accountability for employers and broader support for employees.

Staying informed and proactive will be key to navigating these changes successfully.

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