Employment Rights Act 2025: What employers need to do now
Tools & Resources
Key learnings
- Major day‑one rights start in April 2026, including sick pay, paternity, parental and bereavement leave, alongside stronger maternity protections and flexible working rules.
- October 2026 and January 2027 bring bigger structural changes, including fire‑and‑rehire restrictions, harassment duties, six‑month tribunal limits, and earlier unfair dismissal protection.
- Employers must update policies, systems, and implement manager training early to minimise risk and ensure a smooth transition as reforms roll out through 2026–27.
From April 2026, the United Kingdom begins phasing in the most significant overhaul of employment law in a generation. The Employment Rights Act 2025 introduces earlier access to core rights, new protections for workers, strengthened enforcement, and major changes to how employers manage sickness, family leave, flexibility, trade union relations and redundancies. This article covers what’s changing, when, and how employers can prepare.
What’s changing in April 2026
1
Statutory Sick Pay from day one
The Lower Earnings Limit and the three day waiting period will be removed, making Statutory Sick Pay (SSP) a day one entitlement for all qualifying workers.
2
Day one parental leave and paternity leave
Employees will gain the right to take unpaid parental leave from day one of employment, and the qualifying period for paternity leave will be removed. An estimated 1.5 million parents will become newly eligible.
3
Day one bereavement leave (including pregnancy loss)
Employees will gain a new entitlement to unpaid bereavement leave – including for pregnancy loss before 24 weeks – from their first day of employment.
4
Enhanced maternity and pregnancy protections
New protections will apply against dismissal for pregnant workers and for six months after returning from maternity leave, except in limited circumstances.
5
Strengthened flexible working rights
The existing day one right to request flexible working is strengthened. Employers must follow clearer refusal processes and provide reasoned explanations when requests cannot be accommodated. Further enhancements are expected in 2027.
6
Collective redundancy changes
The maximum protective award for failing to properly consult in collective redundancy situations will double, from 90 to 180 days’ pay.
7
Trade union processes updated
A first wave of trade union changes takes effect on 18 February 2026, including simplified recognition procedures, reduced notice periods for industrial action, and extended protection against dismissal for taking part in industrial action.
8
Launch of the Fair Work Agency
A new single enforcement body, the Fair Work Agency, will take responsibility for enforcing core rights such as sick pay, holiday pay and minimum wage compliance.
What’s coming later in 2026–2027
October 2026 reforms
Several reforms are expected to take effect from October 2026, including:
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Extended Employment Tribunal time limits: from 3 months to 6 months for most claims.
-
Restrictions on fire and rehire: dismissals linked to certain contractual changes will be treated as automatically unfair in most cases.
-
Workplace harassment duties: employers must take proactive steps to prevent harassment, including harassment by third parties.
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Tipping policy consultation: employers must consult workers when setting or changing tipping policies.
Zero hours and low hours contracts (2026–27)
Workers will gain stronger rights to predictable hours, reasonable notice of shifts, and compensation for last minute cancellations. These rights extend to agency workers.
January 2027 reforms
From 1 January 2027, two major changes take effect:
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Unfair dismissal qualifying period reduces from two years to six months, giving millions earlier access to unfair dismissal protection.
-
Removal of unfair dismissal compensation cap, aligning it with whistleblowing and discrimination claims.
These changes significantly raise the importance of early performance management during probation periods.
Five things employers should do now:
1
Update policies and contracts
Review and revise your policies covering sickness absence, parental leave, maternity protection, redundancy, flexible working and trade union processes to reflect April 2026 changes.
2
Train line managers
Ensure managers understand:
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How to handle day one rights
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Sickness absence from day one
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Strengthened flexible working processes
-
New maternity and pregnancy protections
-
Trade union obligations
3
Review HR and payroll systems
Systems should be able to:
- Pay SSP from day one
- Remove Lower Earnings Limit checks
- Administer updated parental, paternity and bereavement leave
- Record flexible working decisions
- Track compliance with new notice periods and redundancy consultation rules
4
Model the financial impact
Budget for:
- Day one SSP costs
- Increased parental and bereavement leave uptake
- Doubled protective awards
- Higher dismissal related risk from 2027
5
Communicate changes clearly
Share a simple guide with staff outlining upcoming changes and where to access updated policies. This helps set expectations early and reduce confusion.
Next steps…
- Build these changes into your 2026 roadmap so you stay on track for compliance.
- Speak with our partner, Croner, if you need support putting new policies and processes in place.
- Keep an eye on government updates and consultations, as several reforms depend on forthcoming secondary legislation.