The Employment Rights Act 2025 brings a phased programme of UK employment law reform, but April 2026 is the point at which The first set of changes under the Employment Rights Act 2025 takes effect in April 2026, which is when many businesses will start to feel the effects in day-to-day operations.
While some later changes have attracted attention, the April 2026 measures are the ones most likely to affect cash flow, staffing cover and management time. The April 2026 changes widen access to statutory rights and strengthen enforcement at a time when many organisations rely on lean teams and informal processes. Where policies exist but are not consistently applied, the risk of disputes and unplanned cost increases rises sharply. April 2026 therefore calls for practical preparation rather than high-level policy statements.
This update sets out what employers need to know to prepare their organisation.
Statutory Sick Pay – immediate cost and cover pressures
From 6 April 2026, Statutory Sick Pay will apply more widely than it does now. The lower earnings limit and the three waiting days will be removed. Workers will become eligible for SSP from the first day of sickness absence, subject to the statutory sickness and entitlement rules.
SSP will be payable at the lower of 80% of a worker’s usual earnings or the statutory SSP flat rate. Based on current projections for the 2026–27 tax year, the SSP rate is expected to be £123.25 per week, with the lower earnings limit expected to be £129 per week, although these figures remain subject to annual uprating.
For smaller teams, the removal of waiting days has a direct financial and operational impact. Short absences that previously carried no immediate pay cost will now trigger SSP from day one. Where cover relies on overtime, temporary staff or managers stepping in, the knock-on effect can be felt quickly.
Managing sickness in small teams
Transitional arrangements apply where sickness absence spans the implementation date. Workers serving waiting days on 6 April 2026 will become eligible immediately, and workers previously excluded due to low earnings will also become eligible from that date.
Where a worker is already receiving SSP and would otherwise see a reduction under the new calculation, transitional protection applies until they return to work, exhaust entitlement or their employment ends. Average weekly earnings will be based on an eight-week reference period, with linked absences relying on the original reference figure.
In practice, clear absence reporting rules and consistent return-to-work conversations will matter more than formal policy documents. Small variations in how absence is handled can quickly become points of tension.
Fair Work Agency – greater exposure for technical errors
From April 2026, enforcement of statutory employment rights will be brought together under a new Fair Work Agency. The agency will combine enforcement functions currently exercised by bodies such as HMRC and the Gangmasters and Labour Abuse Authority.
The Fair Work Agency will be able to enforce specified statutory employment rights within its remit, including recovering underpayments directly from employers. It will also be able to bring Employment Tribunal claims on behalf of workers and provide support in existing cases.
For businesses without in-house HR or payroll specialists, this change increases the risk that small errors are picked up and pursued. Issues such as incorrect SSP payments, missed entitlements or record keeping gaps are less likely to be resolved informally once enforcement is driven externally.
Collective consultation – higher stakes if change is mishandled
Collective consultation rules themselves are not changing, but the financial consequences of getting them wrong will increase. In collective redundancy situations involving 20 or more proposed dismissals, including dismissals connected to contractual changes, the maximum protective award will rise from 90 days’ pay to 180 days’ pay.
For organisations that rarely run formal redundancy processes, this increases the risk where change is managed reactively. Decisions taken quickly to deal with falling demand or rising costs can trigger consultation obligations earlier than expected.
Paternity and parental leave – planning from day one
From April 2026, qualifying service requirements for paternity leave and unpaid parental leave will be removed. Both forms of leave will become day-one statutory entitlements.
Notice requirements remain the same, but eligibility will apply immediately to new starters. Where roles are highly specialised or teams are small, unexpected leave can have a disproportionate impact. Clear handover planning and realistic cover arrangements become more important than policy wording.
Sexual harassment disclosures – higher risk from informal handling
Disclosures relating to sexual harassment will be added to the list of qualifying disclosures under whistleblowing law. Reports that harassment has occurred, is occurring or is likely to occur can qualify, provided the individual reasonably believes the disclosure is true and made in the public interest.
The disclosure does not need to be substantiated at the point it is made. Any dismissal connected to such a disclosure will be automatically unfair, regardless of length of service, provided the statutory tests are met. Protection from detriment will also apply.
In smaller workplaces, concerns are often raised informally and handled through conversations rather than processes. From April 2026, the way those conversations are managed carries greater legal risk if concerns fall within whistleblowing protection.
Trade union recognition – earlier limits on employer responses
Once the relevant provisions are commenced, restrictions on unfair practices will apply as soon as the Central Arbitration Committee accepts an application for trade union recognition. At that point, the proposed bargaining unit will be fixed, even if recruitment continues.
Balloting will also be modernised, with electronic voting introduced and email becoming the preferred method of communication. For organisations without experience of union engagement, this reduces the time available to react once a recognition process starts.
Preparing for April 2026
The April 2026 reforms place greater pressure on day-to-day management decisions. Preparation is less about producing new documents and more about checking whether existing practices stand up when tested.
Key areas to review include how sickness absence is reported and managed, whether pay calculations are consistently applied, how change is communicated and how concerns are escalated. April 2026 is the point at which the Employment Rights Act 2025 begins to affect operational resilience as much as legal compliance.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
