Major changes to employment law have come in this month affecting 15 million workers
Big changes have come into play in April which impact anyone who calls in sick. Now the Department for Work and Pensions has given an update to the Commons about the new rules which will make a difference to 15 million people.
Seven crucial measures within the Employment Rights Act are now law and will impact anyone feeling ill when they are set to go to work from April onwards. One significant new change will affect anybody who takes a day off ill – with people entitled to sick pay from the start.
At Work and Pensions questions this week Labour MP Yuan Yang asked the Secretary of State for Work and Pensions Pat McFadden: “What assessment he has made of the adequacy of rates of statutory sick pay.”|
Mr McFadden highlighted the changes: “I believe my hon. Friend will welcome the changes the Government have made to statutory sick pay, which came into force earlier this month. For the first time ever, we have removed the lower earnings limit for statutory sick pay, as well as the waiting period so that people can access sick pay as soon as they need it. These changes will mean that up to 1.3 million more people will be covered, helping the low paid and those who work for more than one employer in particular.
Ms Yang said a key aspect was the payments from day one: “I am indeed very proud of this Labour Government’s historic Employment Rights Act 2025, which, from this month, means that workers will get statutory sick pay from the first day they are ill, rather than having to wait till the fourth. Too many people in Reading—even those working in health and care settings—are working through their illnesses; this measure will protect them, their clients and patients and improve the productivity of their workplaces.
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“While the ERA is an important step forward, does the Secretary of State accept that the current flat rate of statutory sick pay—at four fifths of average earnings—remains a barrier to those on low incomes, and thus remains a barrier to tackling illness in the workplace?”
Mr McFadden added: “I believe that removing the three-day limit and giving access to statutory sick pay from day one, as well as making it available to those who work for multiple employers, should decrease the pressure on workers to have to work through illness.
“My hon. Friend will be aware that the “Keep Britain Working” review led by Charlie Mayfield also aims to work with employers to help keep people in jobs while they cope with some of the long-term sickness issues that can develop as workers get older.”
Officials say the reforms will stamp out insecure work, unfair pay and poor working conditions, putting more money in people’s pockets and improving living standards. These include giving sick pay to up to 1.3 million of the lowest earners.
The changes include:
- Statutory sick pay is paid from the first day of absence, instead of the fourth day. The lower earnings limit has also been removed.
- Parental leave is more readily available – including paternity leave and ordinary parental leave, or unpaid parental leave, which became a day one right, and bereaved partner’s paternity leave.
- Disclosure of sexual harassment has become a ‘qualifying disclosure’, giving protections from dismissal and detriment.
- Fines for employers who do not consult in collective redundancy situations have doubled to 180 days’ pay for each employee affected.
- Trade unions can use a simplified statutory recognition process to gain the right to negotiate with employers over pay and conditions.
- Employers must keep records of annual leave and holiday pay.
The TUC has stated that the assessment confirms the new Act will deliver significant benefits for the country, including improved health, wellbeing and job satisfaction, and reduced workplace disputes, generating increases in economic output and employment.
TUC general secretary Paul Nowak said: “The Employment Rights Act will deliver vital common sense reforms for millions of people across the country, including sick pay for all workers from day one, banning exploitative zero hours contracts and protecting workers from harassment.”
“Too often in this debate the facts are ignored, but stronger rights at work are good for workers and employers – driving up labour market participation, improving health, raising productivity and boosting demand.
“The Employment Rights Act will deliver an estimated £10 billion boost to the economy – gains that far outstrip any costs. Britain will now be brought into line with other countries where workers already have better protections and, crucially, the legislation will give working people the higher living standards and secure incomes that are needed to build a decent life.
“Good employers will also welcome these changes: the Act protects them from competitors whose business models are built on low-paid, insecure employment.”
New sick pay rights are set to have the greatest impact on both workers and employers, according to research. A study commissioned by conciliation service Acas examining the Employment Rights Act’s changes found that fresh protections against unfair dismissal were also highlighted as significantly influential. Employers ranked new paternity leave rights as their third most important concern, while workers prioritised the new flexible working provisions.
Acas said the findings will help it target support for workers and bosses where they need it the most. Niall Mackenzie, Acas chief executive, said: “The Employment Rights Act is a major shake-up in employment law and will impact businesses and workers across the country.
“It’s crucial that both employers and employees get to grips with the new rules, and Acas remains best placed as independent experts helping everyone at work throughout this period of change.
“Acas will be working with employers, workers and their representatives on the implementation of the Employment Rights Act and we will be updating our advice and training.”
List of changes from April 2026:
- Statutory Sick Pay: More employees will qualify, with no earnings threshold and no three-day waiting period.
- Day-one family leave: Employees entitled to Paternity Leave and Unpaid Parental Leave from the first day in a new job. Notice can be given from 18 February.
- Bereaved Partner’s Paternity Leave: New right to time off following the death of a child’s mother or primary adopter.
- Collective redundancy protections: Increase to the protective award for non-compliance.
- Whistleblowing protections: Stronger protections for workers who report sexual harassment.
- Simpler enforcement through the Fair Work Agency: A new body to uphold workers’ rights and support businesses with compliance.
- Action plans: Employers with 250 or more employees will be encouraged to publish the steps they are taking to reduce their gender pay gap and support employees experiencing menopause.
Prime Minister Keir Starmer has said: “This Government is delivering the biggest upgrade to workers’ rights in a generation. Our Employment Rights Bill is good for workers, good for businesses and good for the economy.
“It’s a core part of our agenda to make people better off and will make a real difference to people’s lives.”
The New Six-Month Qualifying Period
Employees currently need to work for two years before they can claim ordinary unfair dismissal. This has long provided employers with a substantial window to assess new employees and address any performance or conduct issues without the risk of unfair dismissal claims.
However, from 1 January 2027, employees will gain unfair dismissal protection after six months in post. The government’s original proposal was to introduce protection from day one of employment, but this was scaled back before the Bill became law.
Sick pay
From 6 April 2026, the Employment Rights Act 2025 transformed Statutory Sick Pay (SSP) into a “day one” right, removing the three-day waiting period and the lower earnings limit. SSP will be paid from the first day of sickness and be available to all workers regardless of income. SSP is a statutory entitlement that provides income to employees who are off work due to illness. As it stands, SSP:
- Is paid from the 4th day of sickness (with the first 3 “waiting days” being unpaid).
- Pays a fixed weekly rate of £109.40 (as of 2025), regardless of your usual income.
- Requires employees to earn at least £123 a week (meaning employees earning less than this don’t qualify for SSP).
What changed from April 2026?
The upcoming changes proposed under the Employment Rights Bill will make SSP more accessible, flexible, and fair. Here’s what you need to know:
SSP from Day 1
SSP will now be available from the first day of absence, removing the three unpaid waiting days. This change is crucial for employees in lessening the financial pressure during illness, especially for those with unpredictable health conditions.
No Earnings Threshold
The lower earnings limit will be scrapped, meaning those on low wages, part-time contracts, or with irregular hours, who previously didn’t qualify for SSP, will now be eligible.
Pay Based on Earnings
Instead of a flat weekly amount, SSP will be calculated as a percentage of your usual income. This means that employees will receive an amount more closely aligned with their regular income, which helps create a fairer system, especially for those who are lower paid.
For more information on the changes click here.
