A substantial number of changes brought in under the new Employment Rights Act 2025 (the Act) are due to come into effect in April 2026. We look at the key variations that employers need to be aware of.
1. Statutory Sick Pay entitlement from day one of absence
Statutory Sick Pay (SSP) will be payable from the first day an employee is absent due to sickness, abolishing the current three-day wait. SSP will be payable to all workers, with no lower earnings limit, although workers below the statutory rate will receive less, either 80% of their average weekly pay or the statutory flat rate, whichever is lower.
2. Paternity and parental leave
The right to paternity leave will be from day one of employment, not after 26 weeks as is currently the case.
Similarly, unpaid parental leave will be available from day one, eliminating the current requirement to have worked for the employer for a year to qualify.
It will also be possible to take paternity leave directly after shared parental leave.
3. Whistleblowing
Sexual harassment will become a qualifying disclosure under whistleblowing rules and meaning that a whistleblower has protection from any detriment or less favourable treatment arising as a result of the disclosure.
If an employee is dismissed for reporting sexual harassment, it will be automatically unfair if they reasonably believed the disclosure to be both true and in the public interest.
4. Redundancy
If an employer fails to inform and collectively consult where required by law to do so, they can be ordered to pay a protective award of 180 days’ pay per affected employee. This is up from 90 days’ pay currently and is intended to deter employers from making the decision to pay employees rather than go through the consultation process.
With tribunals able to add a 25% uplift where an employer has unreasonably failed to follow the government’s Code of Practice on Dismissal and Re-engagement, this means that the total cost could be 225 days’ pay for each affected employee.
5. Creation of the Fair Work Agency
This is a new government body that will aim to consolidate the enforcement of employment rights, such as payment of minimum wages and holiday pay, and the rights of agency workers. It is due to come into existence on 6 April 2026.
The government hopes that it will reduce exploitation, improve compliance with employment law, and create a system that is easier to navigate.
The agency will have the authority to carry out workplace inspections, conduct investigations, and impose penalties.
6. Trade union engagement
Changes to trade union rules intend to improve trade union powers, assist with worker engagement, and improve worker protections.
Union recognition will be required once 10% of a workforce becomes members.
It will no longer be necessary for 40% of eligible members to support a ballot for industrial action in the area of public services.
Any dismissal of a striking employee for taking part in legal industrial action will be automatically unfair.
How 3CS can help
Our expert employment solicitors can support your business in preparing for the new statutory framework by reviewing and updating employment contracts, policies and procedures, and delivering targeted staff training. Practical guidance can also be provided to managers and HR teams to ensure probationary periods and performance management processes are robust and fit for purpose, and to mitigate litigation risk as the reforms are implemented.
For advice or guidance in respect of the new rules, please get in touch.
