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.

Author

Frequently asked questions related to this blog

What are the main SSP changes from 6 April 2026?

SSP is payable from day one (no more waiting until day four). The £125-a-week lower earnings limit is removed, so all employees qualify regardless of earnings. The rate rises to £123.25 a week. For lower earners, you pay the lower of 80% of average weekly earnings or £123.25 (so £100 a week becomes £80 SSP, not the full flat rate). Part-time, casual, and variable-hours staff who never qualified before will, and you’ll pay sooner. SSP isn’t recoverable through PAYE. Confirm payroll software can do the new calculation before the first April run, and model cost from last year’s absence data.

What else changes for leave and family pay in April?

Family statutory payments rise to £194.32 a week (from £187.18): maternity, paternity, adoption, shared parental, neonatal care, and parental bereavement. First six weeks of SMP stay at 90% of average weekly earnings uncapped; from week seven it’s the flat rate or 90% if lower. Paternity leave and unpaid parental leave become day-one rights, so a new starter can take paternity leave immediately if a child arrives. Bereaved partners’ paternity leave: if a mother or primary adopter dies within the child’s first year, the surviving partner or co-parent can take up to 52 weeks. Update contracts, policies, and manager briefings. Collective redundancy protective awards double if consultation goes wrong. Whistleblowing protection for sexual harassment disclosures is strengthened. Large employers can start voluntary menopause and gender equality action plans (mandatory in 2027 for 250+). Trade union recognition is simplified.

What happens on 7 April with the Fair Work Agency?

It goes live as a single enforcement body covering HMRC’s NMW work, the Employment Agency Standards Inspectorate, and the GLAA. Remit includes NMW, SSP, holiday pay, employment agencies, modern slavery and labour abuse, and tribunal award enforcement. It can investigate, issue notices, and pursue civil and criminal penalties.

What’s coming after April 2026?

From August 2026 or later: electronic and workplace balloting for unions. October 2026: duty to take “all reasonable steps” to prevent sexual harassment, including liability for third-party harassment (customers, contractors, visitors); Workers’ Tipping Code of Practice with staff consultation on tipping policies every three months; further union access and representative protections. December 2026: Mandatory Seafarers’ Charter where relevant. January 2027: unfair dismissal qualifying period falls from two years to six months, compensation cap removed, and fire-and-rehire protections make dismissing and re-engaging on worse terms unlawful unless the business is in a genuine financial crisis. Through 2027: mandatory menopause/gender equality plans (250+), stronger pregnancy and return-to-work protections, umbrella regulation, flexible working reforms, bereavement leave for pregnancy loss, new zero-hours rights, and collective redundancy consultation changes.

What should employers do now?

Confirm payroll software or your bureau is ready for SSP. Model SSP cost. Refresh contracts and policies on SSP, paternity/parental leave, bereaved partners’ leave, whistleblowing, and absence. Brief managers so new joiners aren’t given outdated advice. For any restructuring, contract changes, or redundancy planned before January 2027, take advice on timing while the two-year unfair dismissal rule still applies.

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