Seven major changes contained in the Employment Rights Act 2025 have come into force this April 2026 – including Statutory Sick Pay from day one
Wide-ranging reforms affecting all workers have come into effect this month – with the government confirming that around fifteen million people, half of the entire workforce, are set to benefit. Seven key measures within the Employment Rights Act are now legally binding and will have an impact on anyone feeling under the weather before heading into work.
One notable new change will affect anybody who calls in sick. Further employment law updates include ‘day one’ rights for parental and bereavement leave, along with an end to unscrupulous fire and rehire practices.
Officials say the reforms will eradicate insecure work, unfair pay and poor working conditions, putting more money in workers’ pockets and raising living standards. These include extending sick pay to up to 1.3 million of the lowest-paid employees.
This week Fred Jerrome, Head of Workplace Policy at Acas (Advisory, Conciliation and Arbitration Service) cautioned that employers could face hefty fines. He said: “6 April marked more than the new tax year – it saw the roll out of the first major employment law changes in the Employment Rights Act 2025.
“But bringing new laws into force is just the first step. At Acas, we’re working on how these reforms can be successful in practice. As well as training managers and communicating with staff about individual rights, Acas encourages employers to take a proactive approach to dealings with trade unions. Our collective conciliation service is on hand to assist with emerging disputes. It will be employers and unions who are ready to work well together who see the most benefits from the changes in April and beyond.”
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 confirmed that the new Act will deliver considerable advantages for the nation, encompassing better health, wellbeing and job satisfaction, along with fewer workplace disputes, resulting in greater economic output and employment levels.
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.”
Fresh sick pay entitlements are expected to have the most significant impact on both employees and businesses, research suggests.
A study commissioned by conciliation service Acas examining the Employment Rights Act’s reforms found that new safeguards against unfair dismissal were also identified as substantially influential.
Businesses ranked new paternity leave entitlements as their third biggest concern, while employees prioritised the fresh flexible working provisions.
Acas stated the findings will help it direct support for employees and bosses where they require it 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.
