Overview
The Employment Rights Act 2025 (ERA) introduces major updates to workplace rights, with a focus on stronger employee protections, particularly around job security and improved family leave. The roll out of the new requirements will start in April 2026 and continue into 2027.
These changes expand rights for employees and add new obligations for employers. This briefing highlights the main developments, timelines, and practical steps to manage the impact.
The key reforms listed below will come into force from 6 April 2026. The reduction of the service requirement for unfair dismissal claims and the removal of the compensation cap are expected to take effect in January 2027.
Statutory Sick Pay (SSP)
Summary of the changes:
- SSP payable from the first day of illness
- Removal of the lower earnings threshold and no waiting period
- New duty on employers to keep holiday records
Impact: Increased eligibility and earlier cost exposure for employers.
Action: Review sick pay policies and contractual provisions on statutory sick pay. Also review records on holiday and holiday pay to ensure you can demonstrate compliance. Employers will have flexibility in how such records are kept, however, this may be more complex where additional elements such as overtime or commission must be included in holiday pay calculations.
Family Leave “Day One” Rights
Summary of the changes:
- Paternity leave and unpaid parental leave rights will become available from day one of employment
- Greater flexibility for shared parental leave
Impact: Immediate entitlement for new hires and increased operational impact.
Action: Amend family leave policies to reflect the new entitlements and be prepared for greater awareness and uptake in the future.
Whistleblowing Protections
Summary of the changes:
- Sexual harassment disclosures now explicitly qualify for whistleblowing protection
- Strengthening of the duty to take reasonable steps to prevent sexual harassment at work
Impact: Expanded scope for claims and enhanced employee protections in respect of harassment at work.
Action: Ensure whistleblowing policies include sexual harassment as a protected disclosure and consider measures to minimise and prevent risk of harassment, including from third parties.
Note: October 2026 – third party harassment provisions and changes to the duty to prevent sexual harassment will be in force.
Collective Redundancy
Summary of the changes:
Maximum protective award increases from 90 to 180 days’ pay where an employer fails to properly inform and consult on collective redundancies involving 20 or more employees.
Impact: Material increase in financial exposure where consultation obligations are not met.
Action: Review current approaches to collective consultation; when the statutory requirements apply; and ensure managers are aware of their obligations to minimise risk. Further changes will be introduced in 2027.
Trade Union Recognition
Summary of the changes:
- Rights of trade unions to be strengthened. Increased dismissal protection for industrial action.
- The current 12-week limit for claiming unfair dismissal from the start of industrial action will be removed.
- Dismissal for taking part in industrial action will become automatically unfair at any time.
Impact: Increased likelihood of successful union recognition.
Action: Update employment contracts to ensure that it is clear that employees have a right to join a trade union.
Ensure constructive relations with employees and unions, review processes for handling industrial action, and provide employees with training on the rights of trade unions and their members.
Gender Pay Gap & Menopause Action Plans
Summary of the changes:
Large employers will be required to produce an equality action plan setting out steps they are taking to improve gender equality. Voluntary action plans are encouraged from April 2026, with the mandatory regime expected from 2027 for large employers.
Impact: Early preparation is advisable, particularly for larger organisations.
Action: Plans should outline steps to promote gender equality among employees, address the gender pay gap, and support employees in relation to the menopause. Longer implementation horizon but it is worth considering how this will be addressed.
Fair Work Agency - New Enforcement Agency
Summary of the changes:
- New enforcement body, consolidating existing agencies, with responsibility to enforce rights.
- Expected to increase oversight and enforcement activity over time in relation to matters such as statutory sick pay, holiday pay, and minimum wage.
Impact: Greater regulatory scrutiny and enforcement risk.
Action: Review policies; audit compliance and ensure clear records of minimum wage and holiday pay for irregular or zero hours workers, and train managers to reduce the risk of non-compliance by organisations.
Objectives of the Reforms
These reforms:
- Expand employee protections and routes to claim
- Signal a shift towards more active enforcement of breaches
Recommended Action Plan
As there is an increase in legal and financial risk if mitigating measures are not adopted, a proactive and structured response is required to ensure compliance and minimise exposure.
Immediate Action
-
Update policies and procedures, where relevant:
- Sick pay
- Parental leave
- Whistleblowing
- Redundancy and consultation
-
Review redundancy frameworks:
- Ensure compliance with collective consultation requirements
- Reinforce internal approval and escalation processes
Short Term (0-3 months)
-
Strengthen reporting and investigation processes:
- Align whistleblowing and harassment procedures
- Ensure clear, accessible reporting channels
-
Prepare for union engagement, if applicable:
- Assess workforce profile and recognition risk
- Provide management training on employee relations
Ongoing
-
Monitor employment cost impact:
- Increased SSP liability
- Greater uptake of family leave
-
Undertake compliance reviews:
- Audit key employment practices and documentation
- Ensure readiness for potential enforcement activity
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Plan ahead for future reforms:
- Gender pay gap and menopause reporting
- Further ERA developments expected through 2026–2027
Conclusion
The April 2026 ERA changes represent a significant shift in the employment law landscape. The reforms are staggered, with further changes expected in late 2026 and early 2027.
For organisations the focus should be on:
- Policy alignment
- Process robustness
- Risk mitigation through clear documentation and training
Early action will be key to ensuring compliance and avoiding increased financial exposure.
Alissa Foale Interim / Fractional General Counsel
Alissa Foale is a senior legal leader with 19 years’ PQE as a dual-qualified solicitor in England & Wales and the Supreme Court of NSW Australia.
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This update does not constitute legal advice. Please contact us at Of Counsel if you would like to discuss the impact of these changes on your business.
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