Insights

UK Employment Insights: Employment Rights Act 2025 – Key Changes Taking Effect in 2026

Génevie Kuiper-Isaacson, Senior Associate

Génevie Kuiper-Isaacson is a tri-qualified lawyer specialising in employment law. She started her career in South Africa, where she ran her own firm, before moving to a prominent commercial firm in London. She has extensive experience advising both employees and employers in relation to a wide range of matters, including unfair dismissal, sex discrimination, pregnancy/ maternity discrimination, disability discrimination, race discrimination, TUPE, whistleblowing, grievance and disciplinary process, settlement negotiations, redundancies, enforcement and defence of restrictive covenants and corporate advisory and training.

The Employment Rights Act enters a critical new phase this spring, marking the first major milestone in what has been billed as the most significant workplace transformation in a generation. While the Act’s passage on 18 December 2025 brought immediate changes to employment law, such as the repeal of the Strikes (Minimum Service Levels) Act 2023, the Government has opted for a pragmatic, phased implementation for its more complex reforms. As we move into April 2026, the focus shifts from legislative debate to implementation, with a wave of Day One entitlements set to impact millions of workers.

The April 2026 Day One Revolution

  • Paternity and Parental Leave: One of the Act’s most significant shifts is the decoupling of family leave from length of service. As of 6 April 2026, the previous requirements – 26 weeks for paternity leave and a full year for unpaid parental leave – will be removed.

    To support families during this switch, a temporary notice period applies. For babies due between 5 April and 25 July 2026, employees need only provide 28 days’notice of their intention to take leave, rather than the standard 15 weeks.
    The Act now permits paternity leave and pay to be taken after a period of shared parental leave, removing a restrictive “use it or lose it” rule.

    Crucially, while the right to leave is now a Day One entitlement, the rules for Statutory Paternity Pay remain unchanged. To qualify for pay, employees must still meet existing service and earnings thresholds.
  • Expanded Bereavement Rights: As of 6 April, if a mother or primary adopter dies, the father or partner is now entitled to up to 52 weeks of leave to care for the child. This new Day One right – Bereaved Partner’s Paternity Leave – is designed for newborns or newly adopted children. The death must have occurred within 52 weeks of the birth or adoption, and the leave must be taken within the child’s first year.
    Further changes, including a broader Statutory Bereavement Leave for other loved ones (such as spouses or parents), are currently in the consultation phase and expected in 2027.
  • Statutory Sick Pay (SSP) for All: The three-day waiting period for SSP will be removed, allowing payments from the first day of an employee’s absence. Furthermore, the removal of the Lower Earnings Limit means that an estimated 1.3 million low-paid workers will qualify for sick pay. Under the new rules, SSP will be calculated at 80% of average weekly earnings or the flat rate (£123.25), whichever is lower.

Fair Work Agency

On 7 April 2026, the enforcement landscape will be refreshed with the launch of the Fair Work Agency. This new super-regulator has been granted powers to proactively inspect workplaces and issue fines of up to £20,000 per worker for underpayments. This shifts enforcement away from a system that relies solely on individual tribunal claims to one which places the burden of proof, and the cost of non-compliance, squarely on the employer.

Strategic Takeaways for Employers

To stay ahead of the curve, firms should:

  • Audit Payroll immediately: Ensure systems are ready to calculate SSP for all earners, regardless of their weekly pay, using the new 80% rule.
  • Review Contracts and Handbooks: Remove length of service requirements for paternity and parental leave to avoid regulatory scrutiny; update policies and handbooks with all changes and make provisions for the next wave of changes in October 2026 and 2027.
  • Train management on probations: With the 2027 unfair dismissal changes and the proposed nine-month statutory probation period looming, the probationary period is becoming the most critical window in an employee’s lifecycle.

Expert Guidance for a New Era

Navigating these changes requires a proactive audit of your internal policies. Whether you are an employer seeking to update your handbook or an employee looking to understand your new Day One entitlements, our team is here to help.