The Employment Rights Act 2025 (ERA 2025) represents a significant recalibration of employment law enforcement and statutory entitlements in the UK. Although much of the public focus has been on reforms that will not take effect until 2027, including changes to unfair dismissal qualifying service, the changes scheduled for April 2026 will have a more immediate and practical impact on employers.
The April 2026 ERA 2025 reforms widen access to statutory rights, lower procedural thresholds and strengthen enforcement mechanisms. Taken together, they increase financial exposure where employers rely on informal practices, inconsistent management or outdated policies. April 2026 is therefore not a distant milestone. It is the point at which the Act begins to affect everyday employment risk.
Statutory Sick Pay reforms from April 2026
From 6 April 2026, Statutory Sick Pay will apply more broadly than under the current framework. The lower earnings limit and the requirement for three waiting days will both be removed. Workers will become eligible for SSP from the first day of sickness absence, subject to the statutory sickness and entitlement rules.
Payment will be calculated as 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, while the lower earnings limit is expected to be £129 per week. These figures remain subject to annual uprating.
One consequence of the revised structure is that some lower-paid workers will receive less SSP than they do under the current rules. Where 80% of earnings falls below the flat rate, the lower amount will apply. This is particularly relevant for workers earning just above the lower earnings limit.
1. Transitional protection and eligibility changes
Transitional arrangements will apply for workers already on sick leave when the changes take effect. Those serving waiting days on 6 April 2026 will become eligible for SSP immediately, regardless of how many waiting days they have already served. 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 due to the new 80% calculation, transitional protection applies. Those individuals will continue to receive the flat statutory rate until they return to work, exhaust their entitlement or their employment ends.
2. Earnings calculations and linked absences
The 80% calculation will be based on average weekly earnings over an eight-week reference period, with any resulting payment rounded up to the nearest penny. Where there are linked periods of sickness absence, the original reference earnings figure will continue to apply.
For employers, the removal of waiting days increases day-one cost exposure and heightens the importance of accurate absence recording, consistent return-to-work processes and oversight of short-term sickness patterns.
Fair Work Agency and enforcement risk
From April 2026, enforcement of statutory employment rights will be consolidated under a new Fair Work Agency. The agency will bring together functions currently spread across 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 legal assistance or representation in cases that have already been issued.
Where enforcement action is successful, the agency will be able to recover its costs from the employer. The practical effect is that enforcement risk will no longer depend on whether an individual worker has the appetite or resources to litigate. Low-value breaches that may previously have gone unchallenged are more likely to be pursued.
Collective consultation – increased protective awards
Collective consultation obligations will not change in scope, but the consequences of non-compliance will increase significantly. In collective redundancy situations involving 20 or more proposed dismissals, including dismissals connected to contractual changes, the maximum protective award will increase from 90 days’ pay to 180 days’ pay.
This materially raises the stakes for employers undertaking restructures, site closures or large-scale contractual change programmes. Weak consultation planning, compressed timetables or poor information provision will be far harder to defend where challenges arise.
Paternity and parental leave as day-one statutory rights
From April 2026, the qualifying service requirements for paternity leave and unpaid parental leave will be removed. Both forms of leave will become day-one statutory entitlements, aligning them with maternity leave.
Notice requirements are unchanged, and employees will still be required to give the statutory notice to take leave. For employers, the operational impact lies in planning rather than volume. Leave entitlements will apply immediately to new starters, including those recruited into roles where absence at short notice creates operational pressure.
Sexual harassment disclosures and whistleblowing protection
Disclosures relating to sexual harassment will be added to the list of qualifying disclosures under whistleblowing legislation. 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 whistleblowing tests are met. Protection from detriment will also apply.
Trade union recognition and balloting reforms
Once the relevant provisions are commenced, employers will be restricted from engaging in unfair practices as soon as the Central Arbitration Committee accepts an application for trade union recognition. At that point, the composition of the proposed bargaining unit will be fixed, even if recruitment continues during the recognition process.
Balloting procedures will also be modernised, with the introduction of electronic balloting and email becoming the preferred method for communicating ballot outcomes.
Preparing for April 2026
The April 2026 reforms require more than policy updates. They demand tighter operational control, clearer manager guidance and stronger alignment between HR, payroll and legal functions.
Further phases of reform will follow into 2027, but April 2026 marks the point at which the Employment Rights Act 2025 begins to reshape day-to-day employment risk for most UK employers. Planning should already be under way.
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 - a Marketing Agency for the Professional Services Sector.
