By Paul Lott, Sweeney Miller
The Employment Rights Bill received Royal Assent on 18th December 2025, officially becoming the Employment Rights Act 2025.
The changes that this new legislation will bring will be implemented gradually over a two-year period, with most changes expected to take effect during 2026 and into 2027.
What Employers Need to Know
April 2026 marks the introduction of some of the most significant changes brought by the new legislation, which are set out below.
Paternity Leave and Unpaid Parental Leave
Paternity Leave – now a ‘day one’ right
Employees will no longer need 26 weeks’ service to give notice of paternity leave – they can now do so from their first day of employment.
Unpaid Parental Leave – also a ‘day one’ right
Previously requiring one year’s service, ordinary unpaid parental leave is now accessible from day one of employment.
Additional Bereavement Provision
Eligible fathers/partners may take up to 52 weeks of unpaid bereaved partner’s paternity leave if the mother or primary adopter dies.
Statutory Sick Pay (SSP) Reforms
From 6th April 2026:
SSP becomes payable from day one of illness, removing the current 3-day waiting period.
The lower earnings limit is abolished, meaning more workers will qualify for SSP.
SSP increased from £118.75 to £123.25 per week.
Collective Redundancy Protective Award Increases
The maximum protective award for failing to properly consult during a collective redundancy process will double from 90 to 180 days’ pay.
Stronger Whistleblowing Protections
Sexual harassment will now count as a qualifying disclosure under whistleblowing laws. This gives workers protection from detriment and unfair dismissal when reporting sexual harassment.
Gender Pay Gap & Menopause Action Plans
From April 2026, employers will be encouraged to create action plans addressing:
Gender pay gaps
Menopause support in the workplace
These plans become mandatory for employers with 250+ employees in 2027.
Trade Union Changes
Changes include:
Streamlined recognition processes
Allowing electronic voting for union matters
Launch of the Fair Work Agency
A new Fair Work Agency will be introduced to:
Consolidate various enforcement bodies
Enforce rights such as holiday pay and SSP
Conduct workplace inspections
Bring tribunal cases on workers’ behalf
Provide legal advice
Updated compensation limits and statutory payments
From 6th April 2026:
A week’s pay (for redundancy and basic award for unfair dismissal calculations) rises from £719 to £751.
The unfair dismissal compensatory award cap increases to £123,543.
The minimum basic award in specific unfair dismissal cases increases to £9,157.
Statutory maternity, paternity, adoption, shared parental, neonatal, and bereavement pay rise to £194.32 per week (or 90% of earnings if lower).
Taking Action
These changes mark a shift towards broader worker protections, simplified access to leave, and stronger enforcement, with even more significant changes on the horizon in October 2026 and January 2027.
To manage these changes, employers should ensure that all policies are up to date and followed, and ensure that they have HR/legal support in place and a clear understanding of the changes and their impact.
If you’re unsure how the new rules apply to your business, now is the time to seek advice.
Speak to our specialist employment law team for tailored, practical support.
Email Paul.Lott@sweeneymiller.co.uk or call 0345 900 5401.