From 6 April 2026, new employment rights are expected to come into force under the Employment Rights Act 2025 (ERA 2025).

This article highlights two major changes — collective redundancy consultation protective awards and the creation of the Fair Work Agency — and explains what employers should be doing now to stay compliant.

Collective Consultation During Redundancy

Under the ERA 2025, the maximum protective award for failing to carry out proper collective consultation will increase from 90 days’ pay to 180 days’ pay per employee.

Although the consultation process itself is not changing, the financial penalties for getting it wrong will double.

Based on data from the Office for National Statistics (ONS), the average daily pay in the UK is £134.20. For employers planning more than 20 redundancies in 90 days, this could mean a potential risk of £480,000 or more, if statutory consultation rules are breached.

What employers should do:

• Plan carefullybefore starting any redundancy process. Ensure collective consultation meets all statutory requirements.
• Review your redundancy policyto check it is current and legally accurate.
• Train managerson correct redundancy procedures and the serious financial risks of non-compliance.

The Fair Work Agency (FWA)

The Fair Work Agency (FWA) is a proposed new single enforcement body that will bring together several existing regulators:

• The Employment Agency Standards Inspectorate
• The Gangmasters and Labour Abuse Authority
• HMRC’s National Living and Minimum Wage team

The aim of the FWA is to simplify enforcement and provide a single point of contact for both workers and employers.

Key proposed powers include:

• EnforcingStatutory Sick Pay (SSP) and certain aspects of holiday pay
• Supporting employersthat want to comply with the law
• Bringing tribunal claimson behalf of workers where necessary
• Providinglegal assistance to workers, with costs recoverable from employers found guilty
• Pursuing up tosix years of underpayments, including holiday pay and sick pay, and applying financial penaltieswhere appropriate

What employers should do:

• Audit employment practices, including payroll, contracts, and policies, to ensure legal compliance.
• Pay close attention to holiday pay, as this will be a new focus for enforcement.
• Keep accurate recordsof hours worked, pay, holiday, and contract terms.
• Ensure employment documentsare clear, consistent, and accessible to all employees and workers.

Preparing for Change

The ERA 2025 introduces significant reforms aimed at grow the economy, raise living standards and create opportunities for all. There is more to come, so employers should act now to update policies and prepare for compliance in these areas prior to April 2026

If you’d like help preparing for the changes, get in touch.

From 6 April 2026, several important workplace rights are expected to come into effect under the government’s Employment Rights Bill (ERB), now referred to as the Employment Rights Act 2025 (ERA 2025). These reforms will impact areas including paternity leave, unpaid parental leave, and whistleblowing protections.

Here is a summary of the upcoming changes and practical advice for UK employers to stay compliant with the new employment law requirements.

Paternity Leave Changes

Under the new legislation, statutory paternity leave (up to two weeks) will become a day-one right, removing the current 26-week continuous service requirement. This means all new employees who meet the remaining eligibility criteria will qualify for paternity leave.

To be eligible, employees must be one of the following:

• The father of the child
• The husband or partner of the mother (or adopter)
• The child’s adopter
• The intended parent in a surrogacy arrangement

Applicants must also:

• Be an employee (not an agency worker or self-employed contractor)
• Give correct notice (at least 15 weeks before the expected week of childbirth)

Note: The ERA 2025 is currently silent on whether the removal of the service requirement will also apply to Statutory Paternity Pay. Further clarification from the government is expected in due course.

The Department for Business and Trade (DBT) estimates that tens of thousands of fathers will become eligible for paternity leave under these changes.

Another important amendment will allow employees to take paternity leave after shared parental leave, which is currently not permitted under existing rules.

Unpaid Parental Leave Changes

Unpaid parental leave (up to 18 weeks) will also become a day-one right, removing the existing one-year qualifying period.

To qualify, employees must:

• Be named on the child’s birth or adoption certificate (or expect to have parental responsibility)
• Be an employee (not an agency worker or self-employed)
• Not be a foster parent, unless parental responsibility has been granted by the courts
• Have a child under 18 years old

According to the DBT, around 1.5 million people will gain eligibility for unpaid parental leave once the new law takes effect.

Whistleblowing and Sexual Harassment

The ERA 2025 will also expand whistleblowing protection to include disclosures related to sexual harassment in the workplace.

Currently, protected disclosures cover areas such as:

• Criminal offences (e.g. fraud)
• Health and safety risks
• Environmental damage
• Miscarriage of justice
• Legal breaches (e.g. lack of mandatory insurance)
• Concealment of wrongdoing

Personal grievances are not covered unless they are in the public interest.

This means that individuals who report sexual harassment at work will be protected from detriment or dismissal as a result of making a disclosure. This protection applies to employees, workers, agency staff, and trainees.

Statutory Sick pay

Changes to Statutory Sick Pay will come in to effect, please read our previous blog for more information about this change.

Action for Employers

To prepare for the 2026 changes, employers should:

• Review and update paternity leave, shared parental leave, unpaid parental leave, whistleblowing, and grievance policies
• Communicate policy updates clearly to all staff
• Brief and train managers to ensure consistent application of the new rules

In summary

The ERA 2025 introduces significant reforms aimed at grow the economy, raise living standards and create opportunities for all. There is more to come, so employers should act now to update policies and prepare for compliance in these areas prior to April 2026

If you’d like help preparing for the changes, get in touch.

The UK Employment Rights Bill 2026 introduces major updates to Statutory Sick Pay (SSP) that every UK employer should start planning for now. Although the reforms take effect from 6 April 2026, businesses need time to prepare for higher absence costs and tighter Fair Work Agency enforcement. At the time of writing, SSP is £118.75 per week —and because it can rarely be reclaimed, it is a direct cost to employers.

What Will Change From 6 April 2026

The Statutory Sick Pay reforms include four headline changes:

• Day-one SSP entitlement– employees will qualify for SSP from the first day of sickness, ending the current three waiting days
• Lower Earnings Limit removed– around 1–1.3 million low-paid workers who earn below the current LEL will now qualify for SSP
• New SSP calculation rule– employees will be paid the lower of 80% of their average weekly earnings or the flat SSP rate. This gives low earners a payment closer to their normal wage, but caps costs at the statutory flat rate
• Fair Work Agency enforcement– the newly created agency will have powers to inspect, audit and enforce SSP compliance

What should employers do?

If your organisation only pays SSP for sickness absence, your staff costs will rise. For each employee, absence separated by more than eight weeks could increase costs by around £71.25 (based on current weekly SSP pay rate).

To protect profit margins:

• Model the financial impact now, using your current absence rates
• Review your sickness policy and staff handbook so references to absence thresholds and payments match the new rules
• If you provide enhanced sick pay, make sure your documentation clearly distinguishes the SSP element and that payroll records it correctly
• Communicate clearly with your payroll provider—check their software can:
  • start SSP from day one
  • pay 80% of average weekly earnings capped at the flat rate, and
  • include employees previously below the LEL

Strengthen Absence Management:

Many employers expect an increase in short-term sickness absence once day-one SSP starts. Employers should ensure that they implement their existing sickness absence review processes, or implement a new process to sit alongside their absence policy so they can proactively and effectively manage short-term absence.

Protect productivity by:

• Setting out a clear absence management policy
• Training managers to apply the policy consistently, and
• Keeping accurate records for potential Fair Work Agency inspections.

Key Takeaway

The Employment Rights Bill 2026 will transform Statutory Sick Pay.

Preparing early—by reviewing policies, updating payroll systems and training managers—will help UK employers stay compliant and control the impact of rising SSP costs.

If you’d like to talk to us about these changes and how best you can prepare for them, please get in touch.