Employment Rights Act 2025: What’s changing in April 2026?

The Employment Rights Bill received Royal Assent on 18th December 2025, becoming the Employment Rights Act 2025. It represents the most significant shift in employment law for decades, and for employers and employees alike, the changes begin almost immediately.

Employment law advisor Brendan Bah sets out what's coming into force from April 2026 and what it means for you.

Statutory sick pay

From 6th April, SSP changes in two important ways:

First, it becomes a day-one right. Previously, SSP only kicked in from the fourth day of absence, meaning short-term illness went uncompensated. That waiting period is now gone.

Second, lower-earning employees will qualify for the first time. Workers earning below the lower earnings limit (£125 per week) were previously excluded entirely. From April, they will be entitled to SSP at 80% of their average weekly earnings or the flat rate, whichever is lower. The flat rate of SSP also rises from £118.75 to £123.25 per week.

In short: all employees, regardless of earnings or length of absence, will now be entitled to SSP when off sick.

Family leave and pay

Several family-friendly rights are being extended, with more employees qualifying sooner.

Paternity leave becomes a day-one right, removing the previous 26-week service requirement. It can also now be taken after a period of shared parental leave. Note that the service requirement for statutory paternity pay remains in place.

Parental leave also becomes a day-one right, down from the previous one-year qualifying period. Employees who will qualify under the new rules (those who wouldn't previously have had sufficient service) can already notify their employers of their intention to take leave from 18th February 2026.

A new statutory leave will also come into effect, Paternity Leave for bereaved parents (BPPL). This means that employed partners will be entitled to take up to 52 weeks' statutory leave if the mother or primary carer/adopter dies within the first year of a child being born or adopted. This will also be a day-one right; however, at present, any leave taken under this would be unpaid, unless an employer decided to pay part of it.

From 6th April, the weekly rate for Statutory Maternity Pay, Maternity Allowance, Paternity Pay, Statutory Adoption Pay, Shared Parental Leave Pay, Parental Bereavement Pay and Neonatal Care Leave Pay all increase to £194.32, or 90% of average weekly earnings, whichever is lower.

The government is currently conducting a wider review of parental leave and pay rights, with a report expected in January 2027.

Whistleblowing: sexual harassment

To make a protected whistleblowing disclosure, an employee's concern must currently fall into one of six categories, things like criminal offences, health and safety dangers, or miscarriages of justice.

The Employment Rights Act adds a seventh: sexual harassment. From April, an employee who discloses that sexual harassment has occurred, is occurring, or is likely to occur will subject to the other qualifying criteria being met be protected from dismissal or detrimental treatment as a result of raising a concern.

The fair work agency

A new public body, the Fair Work Agency (FWA), comes into existence on 7th April. It brings together the enforcement functions currently split across HMRC (National Minimum Wage), the Employment Agency Standards Inspectorate, and the Gangmasters and Labour Abuse Authority.

The FWA will have significant powers, including the ability to bring employment tribunal proceedings on a worker's behalf, provide legal assistance in employment-related civil proceedings, require individuals to attend interviews and produce documents, enter business premises for inspection, and access computers and software used to store relevant information.

Over time, the FWA's remit is expected to expand to cover holiday pay, SSP and other employment rights. Further regulation is still needed before it begins active enforcement, so no start date for investigations has yet been confirmed.

Redundancy: Protective Awards

Where an employer fails to collectively consult when making 20 or more redundancies within a 90-day period, employees can currently claim a protective award of up to 90 days' pay. From April, that maximum doubles to 180 days' pay, a significant increase in the potential cost of getting redundancy processes wrong.

Trade Union reform

Phase two of the Act's trade union reforms will simplify the statutory recognition process, making it easier for a union to achieve legal recognition from an employer.

This builds on changes already in effect from 18th February 2026, which included reducing the strike notice period from 14 to 10 days, extending the strike mandate duration from 6 to 12 months, removing the 12-week cap on unfair dismissal protection for strikers, scrapping the requirements for picket supervisors and having to provide detailed breakdowns of strike participants.

Menopause action plans

Employers with more than 250 employees will be expected to publish annual Menopause Action Plans from April 2026, initially on a voluntary basis, becoming mandatory in 2027.

These plans should address practical workplace support, including management training, workplace adjustments (such as temperature control, uniform flexibility and break arrangements), and how menopause-related absences are recorded.

While menopause is not yet a standalone protected characteristic, this legislation signals a clear direction of travel and sits alongside existing exposure to age, sex and disability discrimination claims.

Minimum wage increases

From April 2026, the minimum hourly wage rates for all workers will increase:

• Aged 21+: will increase from £12.21 to £12.71
• Aged 18–20: will increase from £10.00 to £10.85
• Aged 16-17: will increase from £7.55 to £8.00
• Apprentices: will increase from £7.55 to £8.00

These increases further close the gap between 18–20-year-olds and those 21+ as the government hopes to meet its promised election manifesto to have one wage rate for all adults (18+) by 2028 or 2029.

Unfair dismissal: plan ahead now

This change doesn't take effect until 1st January 2027. However, employers need to take this into account now.

Currently, employees need two years' service to bring an unfair dismissal claim. Under the new legislation, the qualifying period drops to six months. Crucially, although the law is not retrospective in the traditional sense, any employee in post on or before 1st July 2026 is likely to have the required six months' service by the time the legislation comes into force on 1st January 2027.

Two further points worth noting: the current compensation cap (the lower of 52 weeks' salary or £118,223) will be removed, meaning tribunals could award unlimited compensation; and employees will gain the right to written reasons for dismissal after just six months' service.

This is the single biggest change in the Act. If your dismissal processes, probationary policies and documentation aren't already under review, now is the time to start.

How can we help?

It's going to be a demanding year for HR teams and employers navigating these changes. Our employment law specialists can help you understand what the new legislation means for your business, review your policies and procedures, and make sure your documentation is compliant and fit for purpose.

For further information and advice on how LCF Law can support your business, including providing an Adverse Weather policy, contact Brendan Bah on 07518 298 838 (or email ku.oc1780311138.fcl@1780311138habb1780311138) or James Austin on 07729 118 961(or email ku.oc1780311138.fcl@1780311138nitsu1780311138a.sem1780311138aj1780311138). 

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