Employment Rights Act 2025: What employers need to do now
Tools & Resources
Key learnings
- Major day-one rights started in April 2026, including sick pay, paternity leave and unpaid parental leave, alongside Bereaved Partner's Paternity Leave and strengthened worker protections.
- 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 began 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 changed in April 2026
1
Statutory Sick Pay from day one
The Lower Earnings Limit and the three day waiting period has been removed, making Statutory Sick Pay (SSP) a day one entitlement for all qualifying workers.
2
Day one parental leave and paternity leave
Employees gained 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 became newly eligible.
3
Bereaved Partner's Paternity Leave
From April 2026, Bereaved Partner's Paternity Leave gave bereaved fathers and partners the right to take up to 52 weeks of paternity leave where the mother or primary adopter dies within the first year of the child's life.
4
Enhanced maternity and pregnancy protections
New protections 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 was strengthened. Employers must follow clearer refusal processes and provide reasoned explanations when requests cannot be accommodated. Additional flexible working reforms remain scheduled as part of the wider 2027 programme.
6
Collective redundancy changes
The maximum protective award for failing to properly consult in collective redundancy situations doubled, from 90 to 180 days’ pay.
7
Trade union processes updated
A first wave of trade union changes took 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, now has 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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A duty to inform workers of their right to join a trade union
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Strengthened trade union access rights and recognition procedures
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Stronger protections for trade union representatives
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New requirements for employers to take all reasonable steps to prevent sexual harassment, including harassment by customers, clients and visitors
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Enhanced enforcement powers and updated guidance on the fair distribution of tips
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, significant changes to unfair dismissal law are expected to take effect:
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The qualifying period for ordinary unfair dismissal claims will reduce from two years to six months.
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The cap on compensatory awards for successful unfair dismissal claims will be removed.
While employment tribunals will continue to calculate awards based on actual and projected losses, employers may face greater financial exposure in some cases. This increases the importance of robust recruitment, probation, performance management and employee relations processes.
Dates to be confirmed
Further Employment Rights Act reforms are expected during 2027, including a new entitlement to bereavement leave and protections relating to pregnancy loss before 24 weeks. The Government is consulting on the detailed regulations before implementation.
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
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New maternity and pregnancy protections
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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.