By Paul Chappell

25th February 2026

Employment Rights Act 2025 – everything changing in April 2026 (and what’s coming next)

April 2026 is nearly here, and it is shaping up to be one of the most significant months for UK employment law in a generation. The Employment Rights Act 2025 became law in December last year, and April 2026 is when the majority of its early reforms land. On top of that, the Fair Work Agency, a new enforcement body with real teeth, goes live, and statutory payment rates are rising across the board.

If you run a business, manage people, or handle payroll, this is not the time to be caught off guard. Here is a summary of everything that changes in April ‘26, and a clear picture of what is still to come after that.

Changes from 6 April 2026

Statutory Sick Pay – the biggest shake-up in decades

This is the one that will have the most direct impact on payroll costs for many employers. Two long-standing rules are gone, and a new calculation applies for lower earners.

  1. SSP from day one. Previously, employees only received SSP from the fourth day of sickness. From 6 April, it is payable from the very first day. If you employ staff who occasionally take a day or two off sick, your SSP liability is going up.
  2. The lower earnings limit is scrapped. Until now, employees earning less than £125 per week did not qualify for SSP at all. That threshold disappears completely. All employees will qualify, regardless of what they earn.
  3. New rate and a new calculation for low earners. SSP rises to £123.25 per week (up from £118.75). For employees who would previously have fallen below the earnings threshold, SSP will be whichever is lower- 80% of their average weekly earnings, or the standard £123.25 rate. So, if someone earns £100 per week, their SSP would be £80, not the full flat rate.

What this means in practice is that if you employ lots of part-time, casual, or variable-hours workers, you will be paying SSP to people who have never qualified before, and you will be paying it sooner.

Check your payroll software is ready for this now. Do not leave it until your first April pay run to find out it cannot handle the new calculation.

It is also worth reminding yourselves that SSP is no longer recoverable through the PAYE system, so employers carry the full cost.

Statutory family payments all rise

All family-related payments increase to £194.32 per week (up from £187.18), reflecting a 3.8% rise in line with CPI. This covers;

  • Statutory Maternity Pay
  • Statutory Paternity Pay
  • Statutory Adoption Pay
  • Statutory Shared Parental Pay
  • Statutory Neonatal Care Pay
  • Statutory Parental Bereavement Pay.

The first six weeks of Statutory Maternity Pay remain at 90% of average weekly earnings with no cap. Only from week seven does the flat rate (or 90% if lower) apply.

Day-one rights for paternity and parental leave

From 6 April, paternity leave and unpaid parental leave become day-one rights. Employees will no longer need to accumulate a qualifying period before they are entitled to take them. If someone joins your business and has a child arrive the following week, they can take their paternity leave immediately.

Update your contracts and policies now. Make sure your managers know this has changed, particularly for new starters who might ask the question.

Bereaved partners’ paternity leave

A new right comes in for bereaved partners: if a mother or primary adopter dies within the first year of a child’s life, the surviving partner or co-parent will be entitled to up to 52 weeks of bereaved partners’ paternity leave. This is a compassionate and significant new entitlement. Make sure your HR policies acknowledge it.

Collective redundancy – the protective award doubles

If you are planning redundancies and you fail to follow the correct collective consultation process, the maximum protective award an employment tribunal can make doubles under the new rules. That is a significant financial risk for any business that gets the process wrong. If you have any redundancy exercises in the pipeline, take advice now and make sure your consultation is watertight.

Whistleblowing – stronger protections for sexual harassment disclosures

Workers who blow the whistle on sexual harassment will receive enhanced protection from 6 April. If dismissal or detriment is linked to a whistleblowing disclosure about sexual harassment, the legal consequences for employers become more serious. Review your whistleblowing policy and make sure it is up to date.

Voluntary menopause and gender equality action plans

Large employers can begin publishing voluntary menopause and gender equality action plans from April 2026. These become mandatory in 2027, so this is the ideal moment to get ahead. If you employ 250 or more people, starting work on this now puts you in a much stronger position when the obligation kicks in.

Trade union recognition made simpler

The process for trade unions to gain statutory recognition from employers is being simplified. If you employ unionised workers or are in a sector where union membership is growing, it is worth understanding what this means for your employee relations approach. The February 2026 changes already made industrial action easier to organise – these April changes continue in the same direction.

7 April 2026 – the Fair Work Agency launches

One day after the main tranche of the Employment Rights Act changes, the Fair Work Agency goes live. This is the government’s new single enforcement body, bringing together HMRC’s National Minimum Wage enforcement, the Employment Agency Standards Inspectorate, and the Gangmasters and Labour Abuse Authority under one roof.

The scope of its enforcement covers;

  • National Minimum Wage
  • Statutory Sick Pay
  • Holiday pay
  • Regulation of employment agencies
  • Modern slavery and labour abuse
  • Enforcement of Employment Tribunal awards

The FWA will have significantly more resources and powers than the bodies it replaces. It can investigate employers, issue notices, and pursue civil and criminal penalties. Employment law compliance is no longer something you can treat as a box-ticking exercise. The stakes for getting it wrong have gone up materially.

Key dates for what comes after April 2026

The Employment Rights Act is being implemented in waves. April 26 is the biggest so far, but there is plenty more to plan for.

August 2026 or later

Electronic and workplace balloting for trade union votes becomes available, making it easier for unions to organise.

October 2026

In October, a significant second wave arrives.

Employers will be required to take “all reasonable steps” (not just “reasonable steps”) to prevent sexual harassment in the workplace. Crucially, employers will also be liable if third parties – customers, contractors, visitors – harass their staff. Hospitality, retail, and care employers in particular need to have this on their radar now.

The Workers’ Tipping Code of Practice also tightens up in October, with staff consultation on tipping policies required every three months.

Trade union rights expand further in October too, with stronger access rights and additional protections for union representatives.

December 2026

The Mandatory Seafarers’ Charter comes into force (for those in the relevant sector).

January 2027

Two of the most significant changes in the entire Act arrive.

The unfair dismissal qualifying period drops from two years to just six months, meaning employees can bring unfair dismissal claims far sooner. The compensation cap for unfair dismissal is also removed entirely.

On the same date, fire and rehire protections come into force, making it unlawful to dismiss employees and re-engage them on worse terms unless the business is in a genuine financial crisis.

Throughout 2027

The final wave of reforms includes;

  • Mandatory menopause and gender equality action plans (for employers with 250+ staff)
  • Enhanced protections for pregnant women and new mothers returning from maternity leave
  • Regulation of umbrella companies
  • Flexible working reforms
  • Bereavement leave for pregnancy loss
  • New rights for zero-hours workers
  • Changes to collective redundancy consultation rules.

What you should be doing right now

With April just weeks away, the time for planning is running out. Here is where to focus your energy.

Check your payroll software

The SSP changes in particular require system updates. If you run payroll in-house, confirm your software supplier has issued an update. If you use a bureau, ask them directly.

Model your SSP cost

Look at your absence data from the last 12 months. Factor in the day-one change and the removal of the earnings threshold. Understand what this means for your budgets before it hits.

Update your employment contracts and policies

Paternity leave, parental leave, bereaved partners’ paternity leave, SSP, whistleblowing, and absence policies all need refreshing. If contracts reference “SSP from day four” or qualifying periods for parental leave, they are already out of date.

Brief your managers

More employees will qualify for SSP. Day-one leave rights mean new joiners have immediate entitlements. Managers giving wrong information to staff is both a reputational and legal risk.

Get ready for January 2027 now

The six-month unfair dismissal threshold is not until January, but if you are planning any restructuring, contract changes, or redundancy exercises, you need to think carefully about timings and take proper advice. What is legally permissible today may not be in eleven months.

April 2026 is not a routine payroll update. It is a genuinely transformational moment for employment law in the UK.

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