Employment Rights Act 2025 – April 2026 Amendments
Employment Rights Act 2025 – April 2026 Amendments
April 2026 marks a turning point in the UK workplace. With the introduction of the Employment Rights Act 2025, the balance between employers and employees is shifting in ways not seen for decades. From stronger day-one rights to new protections around job security, flexible working, and fair treatment, the modern workforce is entering a new era of accountability and empowerment.
But these changes are more than just legal updates—they reflect a wider transformation in how work is valued and experienced. In a world shaped by evolving expectations, economic pressure, and rapid social change, the Act raises important questions and how will businesses and employees adapt.
We’ll break down the key changes that are being introduced in April 2026, what they mean in practice and how is best for Employers to prepare for these changes.
Amendment 1: Family-friendly rights
From 6 April 2026, paternity leave and unpaid parental leave will become available from the first day of employment (a ‘day-one right’).
This removes the current requirement for employees to have 26 weeks’ service to qualify for paternity leave and one year’s service for parental leave. The change closes a gap that previously affected parents who switched jobs or returned after a career break, often causing them to lose access to such entitlements.
In addition, the rule preventing paternity leave from being taken after shared parental leave will be removed, giving families greater flexibility in how they divide time off during the first year after a child’s birth or adoption. However, it is important to note that the 26-week qualifying period for statutory paternity pay will remain in place.
The Government estimates that these reforms will make around 30,000 more fathers and partners eligible for paternity leave each year, while approximately 1.5 million parents will benefit from the introduction of day-one rights to unpaid parental leave.
How should Employers Prepare?
Employers will need to consider making amendments to their current policies. For example:
- Parental Leave Policy – Removal of any qualifying period for eligibility.
- Paternity Policy – Removal of any qualifying period for eligibility, and the removal of any provision which states the employee cannot take paternity leave if they have already taken shared parental leave with regards to that child; and
- Shared Parental Leave – Any reference to restrict the Employee from taking paternity leave after a period of shared parental leave.
Amendment 2: Sickness Absence / Statutory Sick Pick Entitlement
From April 2026, the Employment Rights Bill will:
- Abolish the current 3 waiting days for SSP Entitlement; and
- Make SSP payable from the first day of sickness.
These changes will benefit those employees who are suffering from a short-term illness and ensure they are still receiving a level of pay whilst they recover. In effect, this should ensure financial security if the employee cannot attend the workplace for any reason related to sickness. This means that new employees may be eligible for SSP immediately once employed, but they need to be on the employer’s payroll first before any payment is made. This of course does have a burden for employers, however. It creates a more administrative burden on their part to update their payroll systems and absence management policies to reflect this new change. Notwithstanding this, with day 1 entitlements and broader eligibility, this could lead to more absences.
As per the Government website, “on its own, removing the waiting period is estimated to cost around £1.02 billion (£36 per employee). It was also stated “SSP costs to business currently are around 0.06% of total spending on wages annually by businesses. This increases to around 0.09% of total spending on wages as a result of the proposed reform options to SSP”. This is, of course, a financial implication business need to take seriously into consideration.
At present, employees are required to earning at least £125 per week to qualify for SSP (2025/26). From April 2026, however, the Employment Rights Bill will:
- Remove the LEL in its entirety; and
- All employees, regardless of income level, will be eligible to claim SSP
Under this new calculation, if 80% of someone’s weekly pay is below that flat rate, they get the 80% amount; if 80% of pay would be more than the flat rate, they get the flat rate instead.
How should Employers Prepare?
Professionals should also recognise that policies will also need careful review. The removal of the three-day waiting period means that short-notice, short-term sickness will now attract paid entitlement, and employers should expect some change in absence patterns. Sickness notification procedures, evidence requirements, return-to-work processes and absence-management triggers all need to be reconsidered. Updating policies before the reforms take effect ensure employees and managers are aligned to their expectations, and it prevents the confusion that inevitably follows when rules change suddenly without preparation in April 2026.
The business’ absence management strategy will also need to evolve. With more employees eligible for SSP and with pay starting from the first day, businesses may experience a rise in short-term absences. Employers should take the opportunity to look more closely at their well-being policies, their approach to monitoring patterns of absence and the support they offer employees returning from shorter periods of sickness. A clear, fair system that balances support with accountability will become even more important under the new rules.
Amendment 3: Disclosure of Sexual Harassment now qualifies as a Whistleblowing Disclosure
Sexual Harassment now qualifies as a whistleblowing disclosure under the Employment Rights Act. This will mean protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure (for instance, a report that sexual harassment has occurred, is occurring or is likely to occur).
How should Employers Prepare?
It is recommended to review and update whistleblowing policies where required and ensure that appropriate protection is in place for workers who report sexual harassment, so they are not subjected to any detriment or dismissal as a result. Disclosures about sexual harassment should also be excluded from the scope of any confidentiality provisions, for example in Settlement Agreements.
Amendment 4: Collective Consultation pay increased
The maximum protective award for a breach of collective consultation requirements on redundancy will now double from 90 days’ pay to 180 days’ pay because of changes under the ERA.
How should Employers Prepare?
This change significantly increases the cost of non-compliance with the obligation to consult collectively. If your business is having / is planning on having redundancies from April 2026, you should ensure that the proposed dismissal numbers are accurately tracked and make sure you understand and comply with the collective consultation regime where these obligations are actioned appropriately. Additionally, failing to comply with the obligation to file an HR1 notice in respect of collective redundancies is a criminal offence.
Amendment 5: Increased Trade Union Rights
It is not just businesses with a trade union presence that will be affected by these changes. Even those businesses that do not may be affected, as some of the changes might mean that trade unions seek to recruit, etc. in your workplace.
Trade unions will experience greater freedom to organise, represent and negotiate on behalf of workers. Unions will no longer be required to demonstrate most workers in the proposed bargaining unit are likely to support recognition. The government will also have the power to make regulations reducing the membership threshold to between 2% and 10%.
Where recognition is decided by ballot, a union will only need a small majority of votes cast, rather than meeting the previous requirement of 40% eligible workers to vote in favour. These changes significantly increase the likelihood of successful recognition applications and reduce any procedural barriers which currently face unions seeking statutory recognition. As a result, employers can expect to see a greater number of recognition campaigns, swifter resolution of the recognition process, and a greater likelihood of a union securing mandatory recognition in workplaces where it has moderate support.
How should Employers Prepare?
These changes will lead to more applications for recognition. If you haven’t dealt with trade unions before, you should be prepared for the possibility of recognition applications and the need to work with trade unions in the future. Proactive employee relations strategies will become even more important, so employees are engaged and ensure their concerns are addressed.
Amendment 6: Introduction Fair Work Agency
The Fair Work Agency is a new body designed to simplify the enforcement of employment rights and ensure fair treatment for workers.
For years, the enforcement of basic rights such as holiday pay, statutory sick pay, and the minimum wage has been handled by multiple, fragmented bodies, including HM Revenue & Customs’ minimum wage unit, the Gangmasters & Labour Abuse Authority, and the Employment Agency Standards Inspectorate. This fragmented system often leaves workers unsure where to turn and allows law-breaking employers to slip through the cracks.
The Fair Work Agency aims to streamline enforcement by bringing all these functions under a single body, making it easier to protect workers and uphold fair competition amongst employers.
The government have stated that “operational” matters such as the transfer of functions from existing agencies to the Fair Work Agency were under consideration and that some kind of transitional period was likely. For instance, transferring National Minimum Wage enforcement from HMRC to the FWA will take time, and HMRC may continue performing this function for a while after the FWA is established. Initially, officers from existing agencies will move into equivalent roles at the FWA.
When a breach occurs, known as a labour market offence, the FWA will issue a notice identifying the offence, explaining the reasons, and inviting the employer to provide a Labour Market Enforcement (LME) undertaking. Officers of a company may also have personal liability if the offence was committed with their consent, connivance, or neglect. An LME undertaking can last up to two years but may be discharged earlier. When discharged early, the agency must notify the subject and any other interested parties.
How should Employers Prepare?
Employers can expect more proactive enforcement under the Fair Work Agency. The Fair Work Agency will have powers to inspect workplaces and employment records, investigate non-compliance without waiting for individual complaints, issue penalties and fines, and recover unpaid wages on behalf of workers. This marks a shift away from a largely complaint-driven system toward active regulation, particularly in sectors where breaches of employment law are more common.
A greater focus on record-keeping and compliance will be essential. Employers will need to ensure that pay, working time, holiday entitlement, and employment status records are accurate and up to date. Poor or incomplete documentation is likely to attract attention, especially where it masks underpayment of wages or holiday pay, misclassification of workers as self-employed, or agency worker breaches. Even well-intentioned employers may face enforcement action if records cannot clearly demonstrate compliance.
In practical terms, employers should take steps now to reduce risk. This includes auditing pay, holiday, and working time practices, reviewing employment status and agency arrangements, strengthening internal compliance and training, and preparing for inspections or information requests. Early compliance is likely to be far less costly and disruptive than responding to enforcement action later.
Statutory Pay Updates:
National Minimum Wage:
From 01 April 2026, the Minimum Wage Rates increase where all employers must pay the increase rate of wages. Below is table showing the minimum wage for 2025 and the increase that is payable by any employer to its employees from 1 April 2026.
Statutory Sick Pay
Statutory Sick Pay will increase from £118.75 to £123.25.
Family Leave Pay:
The weekly rate of Statutory Maternity, Paternity, Adoption, Shared Parental, Parental Bereavement, and Neonatal Care Pay will increase to £194.32 from £187.18
Ordinary Tribunal Awards Updates:
The key changes to Employment Tribunal payments include:
- Limit on a week’s pay: Increased from £719 to £751
- Maximum compensatory award for unfair dismissal: Increased from £118,223 to £123,543
- Minimum basic award for certain unfair dismissals (e.g., health and safety dismissals): Increased from £8,763 to £9,157
- Compensatory award for failure to have a written tips policy or failure to allocate and pay tips fairly: Increased from £5,135 to £5,366 per employee
- Vento Bands have been increased as set out below:
For further information and assistance with the implementation of these new; legislative changes, please contact a member of our Employment law team at: –
Kerseys Solicitors in Ipswich at [email protected] or telephone 01473 213311 or
Kerseys Solicitors in Felixstowe at [email protected] on 01394 834557 or
Kerseys Solicitors in Woodbridge at [email protected] on 01394 813732 or
Kerseys Solicitors in Colchester at [email protected] on 01206 584584 or
Kerseys Solicitors in Stowmarket at [email protected] on 01449 613631 or
visit our website and click “Call Me Back” where a member of our employment law team will be happy to contact you at a time that is convenient to you.
