Employment law has just changed significantly. The Employment Rights Act 2025 (ERA 2025) came into force on 6 April 2026, bringing with it some of the most wide-reaching changes to workers’ rights in decades.
Whether you run a small business or manage a large workforce, there is something in this legislation that will affect you. Here is a clear, straightforward guide to what changed and what you need to do about it.
What is the Employment Rights Act 2025?
The ERA 2025 received Royal Assent on 18 December 2025. It is the government’s flagship employment legislation, designed to strengthen workers’ rights and modernise the relationship between employers and employees.
The changes are being introduced gradually. The first significant wave landed on 6 April 2026. More changes, including reforms to unfair dismissal rules and employment tribunal time limits, will follow from October 2026 and into 2027.
What Changed on 6 April 2026?
Statutory Sick Pay: fairer from day one
Two important changes to Statutory Sick Pay (SSP) are now in force. The three-day waiting period, the period at the start of sickness absence during which SSP was not paid, has been scrapped. Employees are now entitled to SSP from their first day of absence.
The lower earnings limit has also been removed, meaning that employees are eligible for SSP regardless of how much they earn. Those earning below the previous threshold will receive SSP at 80 per cent of their average weekly earnings, or the flat SSP rate, whichever is lower.
For employers, this means reviewing payroll processes and sickness absence policies to make sure they are in line with the new rules.
Paternity leave and unpaid parental leave: day-one rights
Until now, employees needed 26 weeks of service before they could take paternity leave or unpaid parental leave. That qualifying period has gone. From 6 April 2026, both entitlements are available from the first day of employment.
Employees can also now take paternity leave after shared parental leave, something they could not do before.
A new right to Bereaved Partners’ Paternity Leave has also been introduced. If a child’s mother or primary adopter dies in connection with childbirth, the surviving partner is entitled to up to 52 weeks of unpaid leave, regardless of how long they have been with you. This is a meaningful change, and one that deserves a thoughtful response from employers.
Collective redundancy: the cost of getting it wrong has doubled
If an employer fails to properly follow collective redundancy consultation rules, the maximum protective award an Employment Tribunal can make has doubled, from 90 days’ pay to 180 days’ pay per affected employee. This applies to dismissals taking effect on or after 6 April 2026.
If your business is considering redundancies involving 20 or more people, the financial risk of a flawed process is now considerably higher. Getting the consultation right matters more than ever.
Whistleblowing: sexual harassment is now a protected disclosure
From 6 April, reporting sexual harassment in the workplace is now protected under the whistleblowing law. An employee who raises a concern about sexual harassment is protected from dismissal or detrimental treatment as a result.
If your whistleblowing policy is out of date, updating it is now a priority.
Holiday records: a new record-keeping requirement
Employers are now legally required to keep records of employees’ annual leave and holiday pay, and to hold those records for six years. Failure to do so is a criminal offence.
This obligation landed without much fanfare, so it is worth checking your HR systems now to make sure you are recording what the law requires.
Trade union recognition: a simpler process
The rules around trade unions gaining statutory recognition from an employer have changed. The previous requirement for unions to demonstrate likely majority support before applying has been removed, and recognition ballots are now decided by a simple majority of votes cast. The 40 per cent threshold that previously applied is gone.
Equality action plans: start now, ahead of the 2027 deadline
Employers with 250 or more employees can now publish voluntary equality action plans, covering the gender pay gap and menopause support, ahead of these becoming mandatory in 2027. There is real value in getting ahead of this one rather than treating it as a last-minute tick-box exercise.
The Fair Work Agency: a new enforcement body
From 7 April 2026, the Fair Work Agency (FWA) is up and running. It brings enforcement of employment rights, including the National Minimum Wage, holiday pay and agency worker protections, under one roof. It has real powers, including the ability to carry out workplace inspections. Employers should make sure their records and compliance processes are in good shape.
What should you do now?
The changes that arrived on 6 April are wide-ranging, but the actions required are manageable if you work through them methodically:
- Update your sickness absence policy to reflect day-one SSP entitlement
- Revise your family leave policies to cover the new day-one paternity and parental leave rights
- Audit your holiday records and update your retention policy to meet the six-year requirement
- Review your collective redundancy process in light of the doubled protective award
- Update your whistleblowing policy to include sexual harassment as a qualifying disclosure
- Make sure your managers understand what these changes mean in practice
With more changes arriving from October 2026 onwards, keeping your employment policies current is not a one-off job, it is an ongoing responsibility.
How can we help?
Mario Mastantuono is a Solicitor in our Dispute Resolution Team.
Understanding what the law requires is one thing; putting it into practice is another. Our employment law team advises businesses of all sizes, helping them navigate change with confidence and clarity. If you would like to discuss how the Employment Rights Act 2025 affects your business, get in touch with our team via our online enquiry form or call 08455 435 700.
We have offices in Chelmsford, Colchester and London, and our lawyers are ready to help.