The first significant changes introduced under the Employment Rights Act (ERA) 2025 came into effect on 6 April 2026.
Statutory Sick Pay (SSP)
Two important changes to SSP are now in force. The three-day waiting period where SSP was not paid for the first three days of absence has been removed. Employees are now entitled to SSP from the first day of absence.
The lower earnings limit to be eligible for SSP has been removed so all employees are eligible for SSP regardless of their earnings. The amount of SSP payable will be the lower of the statutory rate and 80% of the employee’s normal weekly earnings.
Paternity Leave and Unpaid Parental Leave
Employees are now eligible to take paternity leave and unpaid parental leave from the first day of employment.
A new day-one right to Bereaved Partners’ Paternity Leave has also been introduced for parents whose partner dies during childbirth or within the first year of the child’s life. The surviving partner is entitled to up to 52 weeks of unpaid leave.
Collective Redundancy
If an employer fails to follow collective redundancy consultation rules, the maximum protective award an Employment Tribunal can give to each affected employee dismissed after 6 April 2026 has doubled from 90 days’ pay to 180 days’ pay.
Sexual Harassment is a Protected Disclosure
Workers who report sexual harassment are now protected under whistleblowing law. This means than any worker who raises a concern about sexual harassment in the workplace is protected from dismissal or detrimental treatment as a result.
Trade Union recognition
UK Trade Union recognition has been simplified, with lower membership thresholds and a simple majority vote required for statutory recognition.
The Fair Work Agency
The Fair Work Agency (FWA) is now in place to enforce employment rights, such as the National Minimum Wage, holiday pay, SSP and agency worker protections. The FWA has the power to bring proceedings in the Employment Tribunal on a worker’s behalf and the right to search business premises and seize documents.
What should employers do now:
Employers are advised to take the following action to ensure compliance with the recent changes:
- Audit employment contracts
- Review and update sickness absence policies to reflect the new SSP rules
- Review payroll policies to ensure that National Minimum wage, holiday pay and SSP obligations are being met
- Review and update family leave policies to include the new day-one paternity and parental leave rights
- Review collective redundancy processes
- Update whistleblowing policies to include sexual harassment as a qualifying disclosure
- Train managers to understand how to deal with these changes in practice
If you need any assistance with updating your policies or training your workforce, please contact our Employment team on 0345 646 0406 or fill in our online enquiry form and we will be in touch.