Employment Rights Act changes from April 2026 – What Employers Need to Know

The Employment Rights Act was approved in December 2025 after months of consultation and discussion. It introduces wide‑ranging changes to employment law, phased in over the next couple of years. While the scale of reform can feel daunting, the key message for employers is simple: there is time to prepare, and a step‑by‑step approach will make the changes far more manageable. 

 

Below is a practical overview of the main changes taking effect from April 2026, what they mean in practice, and how employers can start getting ready now. 

 

The law makes it easier for trade unions to organise, gain recognition and take industrial action. Dismissal for taking part in lawful industrial action will become automatically unfair, strike ballots and notices will be simpler and more flexible, and electronic and workplace ballots will become more common. 

 

For employers, this means that if employees join or form a union, recognition and collective action may happen more quickly than in the past. Managers will need to be particularly careful in how they handle disputes, communication and disciplinary issues during any period of union activity. 

 

From April 2026, statutory paternity leave and ordinary parental leave will become day one rights. Employees will no longer need a qualifying period of service before they can take this leave. 

 

In practical terms, a new starter whose partner has a baby could qualify for statutory paternity leave immediately, although the qualifying period for statutory paternity pay will still apply. A new parent will also be able to request unpaid parental leave as soon as they join. 

 

This change has implications for workforce planning and onboarding. Policies will need updating, and payroll systems must be able to grant leave correctly and consistently from day one. 

 

Statutory Sick Pay will also change significantly from April 2026. SSP will be payable from the first day of sickness absence, and the lower earnings limit will be removed. 

 

This means all employees will qualify for SSP, regardless of hours worked or level of pay. Part‑time, casual and low‑paid workers will be entitled in the same way as full‑time employees. 

 

For employers, short absences will cost more and payroll errors will be easier to identify. Absence policies, employment contracts and payroll processes will need to be reviewed. Clear trigger points, return‑to‑work processes and manager training will become even more important to avoid unnecessary cost and disputes. 

 

From April 2026, reporting sexual harassment in good faith will become a protected whistleblowing disclosure. Any negative treatment following a report could lead to a whistleblowing claim, which carries uncapped compensation. 

 

Employers must ensure harassment complaints are handled correctly, with clear reporting routes, proper investigations and protection for those raising concerns. Sexual harassment policies have been a legal requirement since October 2024, but these changes significantly increase the risk where complaints are mishandled. 

 

The Fair Work Agency will replace several existing enforcement bodies, creating a single, more powerful regulator with an active enforcement role. 

 

The Agency will have the power to investigate employers, review payroll records, contracts, rotas and payslips, interview staff, issue legally enforceable compliance notices and impose financial penalties. It will also be able to recover unpaid sums such as SSP or holiday pay on behalf of employees, without the need for a tribunal claim. 

 

This represents a major shift. Issues that may previously have gone unnoticed are far more likely to be identified and enforced, with both financial and reputational consequences. 

 

Where 20 or more redundancies are proposed within a 90‑day period, a collective consultation process is required. From April 2026, the maximum protective award for getting this wrong will double from 90 days’ gross pay per employee to 180 days’ pay per employee. 

 

Even where redundancies are genuine and unavoidable, poorly handled processes could now result in liabilities equivalent to six months’ pay per affected employee. 

 

The most effective way to deal with these changes is to prepare in advance. Key steps include reviewing contracts and worker status, updating policies on sickness absence, family leave, whistleblowing and pay, checking payroll accuracy, and ensuring records such as rotas, payslips and absence logs are up to date. 

 

Manager training is also critical, particularly around managing sickness absence, handling complaints and understanding the increased risks associated with redundancy and union activity. 

 

After April 2026, the next major phase lands in October 2026, followed by further reforms in 2027. These include the effective ban on fire-and-rehire, stronger harassment duties, shorter unfair dismissal qualifying periods, zero-hours contract reforms and mandatory menopause and gender pay action plans. We can support you to deal with those in stages, just as we are with the April 2026 changes so you are supported, not overwhelmed 

 

We are supporting clients using a phased approach, starting with April 2026, aligned with the Employment Rights Act changes. Between now and April 2026, this may include updating contracts, handbooks and policies, reviewing absence and family leave processes, delivering manager training on managing sickness absence, discussing trade union implications and auditing readiness for a Fair Work Agency inspection. The aim is to ensure you are prepared before the changes take effect, rather than reacting once the law has already changed. 

 

Keep up to date with the changes being implemented later in 2026 and 2027. We'll continue to share updates to help you stay informed and prepared. Print out our downloadable version below so you have the first phase of changes at your fingertips.  

 

If you would like to discuss what these changes mean for your business, please get in touch.