If you employ people in the UK, 6 April 2026 was a date that mattered. A significant package of changes under the Employment Rights Act 2025 came into force and for businesses of all sizes, getting to grips with them quickly is important.
We have put together a straightforward guide to what changed, what it means day-to-day and the practical steps worth taking now.
What is the Employment Rights Act 2025?
The Employment Rights Act 2025 (ERA 2025) received Royal Assent on 18 December 2025 and represents the most substantial reform of UK employment law in a generation. The government is introducing the changes in stages, with the first major tranche having landed on 6 April 2026. Further reforms, including changes to unfair dismissal rules and tribunal time limits, are expected from October 2026 and into 2027.
Below is a breakdown of what took effect on 6 April.
What changed on 6 April 2026?
Statutory Sick Pay: no more waiting days
Two important changes to Statutory Sick Pay (SSP) are now in force. The three-day waiting period has been scrapped, meaning employees are entitled to SSP from the first full day of sickness absence. The lower earnings limit has also been removed, so eligibility is no longer tied to how much someone earns. Employees earning below that threshold now receive SSP at 80% of their average weekly earnings, or the flat SSP rate, whichever is lower.
For many employers, particularly those with lower-paid or part-time staff, this is a meaningful shift. It is worth checking that your sickness absence policy and payroll processes reflect the new rules.
Paternity leave and unpaid parental leave: now day-one rights
Until now, employees needed 26 weeks of continuous service to qualify for paternity leave and unpaid parental leave. From 6 April, both are day-one rights, meaning employees are entitled to them from the moment they start working for you.
Employees can also now take paternity leave after a period of shared parental leave, a flexibility that did not previously exist.
A new right to Bereaved Partners’ Paternity Leave has also been introduced. Where a child’s mother or primary adopter dies in connection with childbirth, the surviving partner is entitled to up to 52 weeks of unpaid leave, regardless of how long they have worked for you. This is a significant and compassionate change and one that employers should be ready to handle sensitively.
Collective redundancy: the cost of getting it wrong just doubled
If an employer fails to properly follow collective redundancy consultation rules, the maximum protective award that an Employment Tribunal can make has doubled, from 90 days’ pay to 180 days’ pay per affected employee. This applies to dismissals taking effect on or after 6 April 2026.
For any business considering a restructure or redundancy programme involving 20 or more employees, this change raises the financial stakes considerably. A thorough, well-documented consultation process is more important than ever.
Whistleblowing: sexual harassment now a protected disclosure
Employees who report sexual harassment in the workplace are now protected under whistleblowing law. Making a disclosure about sexual harassment is a qualifying disclosure, meaning employees are protected from detriment and unfair dismissal as a result.
If your whistleblowing policy has not been reviewed recently, now is a good time to update it.
Holiday records: a new legal obligation
Employers are now legally required to keep adequate records of employees’ annual leave and holiday pay and to retain those records for six years. Failure to do so is a criminal offence. This came in with relatively little notice, so it is worth auditing your current systems and HR processes to make sure you are capturing what is required.
Trade union recognition: simpler rules
The process for a trade union to gain statutory recognition has been simplified. The requirement for unions to demonstrate likely majority support before applying to the Central Arbitration Committee has been removed, and ballots are now decided by a simple majority of votes cast. The previous 40% support threshold no longer applies.
Equality action plans: get ahead voluntarily
Employers with 250 or more employees can now publish voluntary equality action plans, covering how they are addressing the gender pay gap and supporting employees going through the menopause. These plans will become mandatory in 2027. Acting now gives you time to do it properly, rather than rushing to meet a deadline later.
The Fair Work Agency: a new enforcement body
From 7 April, the Fair Work Agency (FWA) became operational. It consolidates enforcement of a range of employment rights, including the National Minimum Wage, holiday pay and agency worker protections, into a single body with significant investigatory powers. It signals a more joined-up and proactive approach to enforcement going forward, and employers should be reviewing their compliance processes now.
What should you do now?
With so much changing at once, a clear action list helps. Here is where to start:
- Update your Policies and Contracts to reflect the new changes
- Audit holiday pay records
- Brief your HR team and line managers so they are confident in handling requests and queries under the new rules
More changes are coming. From October 2026, employment tribunal time limits will increase from three to six months and trade union access rights will expand further. Keeping your policies and procedures up to date now means less catching up later.
We can help
Employment law is changing fast, and it can be difficult to keep track of what applies to your business and when. Our employment law team works with employers across a wide range of sectors, helping them understand their obligations and manage their people confidently and fairly.
Whether you need advice on a specific change, a policy review, or support with a redundancy process, we are here to help.
Get In Touch
Sylviane Kokouendo, an Associate Partner in our Employment and HR team, has extensive experience advising employers on all aspects of employment law. She supports organisations with redundancy planning, consultation processes, restructuring, settlement agreements, and Tribunal proceedings, as well as day to day HR matters.
To discuss how we can support your organisation through these changes, please contact our employment team on 0330 111 3131 or get in touch through our online enquiry form.
You can also visit us at our offices in Manchester, Sale and Chester.
