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The Employment Rights Act 2025 represents a substantial overhaul of UK employment law and, while many of the headline reforms will not come into force until 2027, employers should be aware of the changes to UK employment law coming into effect from April 2026. These changes will fundamentally alter how businesses of all sizes manage sick pay, parental leave, redundancies, and more.
At Reality HR, we work closely with Alliotts to help their clients navigate employment law changes with confidence. In this article I outline the key change arriving this April, the practical implications for your business, and the steps you should be taking now.
Here is a summary of the UK employment law changes taking effect from April 2026:
Each of these are covered in more detail below.
The three day waiting period is abolished and the lower earnings threshold removed, meaning all employees qualify for SSP from day one of sickness. Pay will be the lower of the standard SSP rate or 80% of average weekly earnings.
What to do: Update your sickness absence policy, brief your line managers, and model the cost impact. Return-to-work interviews become more important than ever to manage short-term absence effectively.
Both become day one rights. The 26-week qualifying period for paternity leave and the one-year requirement for unpaid parental leave are removed. The bar on taking paternity leave after shared parental leave is also lifted. Note: the qualifying period for statutory paternity pay remains unchanged.
What to do: Update your policies, inform new starters of their entitlements from day one, and plan for the possibility of leave requests very early in employment.
A new day one statutory entitlement for employees who lose the mother of a child within the first year of the child’s life. Up to 52 weeks of leave can be taken depending on timing. The same applies if a primary adopter dies. There is no statutory pay requirement.
What to do: Update your bereavement and parental leave policies, decide your approach to pay during this leave, and ensure managers are equipped to handle these conversations with care.
The cap on protective awards for failing to collectively consult when making 20 or more redundancies is being significantly increased, raising the financial risk of non-compliance. Consultation must begin before any decisions are made and not after.
What to do: If you are considering a restructure, we would recommend you take HR advice before taking any steps. Review your redundancy process and ensure leaders understand when collective consultation is triggered.
Disclosures relating to sexual harassment will be explicitly protected under whistleblowing legislation. Employees raising these concerns will have full whistleblower protections, including against dismissal and detriment. This sits alongside the existing preventative duty introduced in October 2024.
Mandatory action plans for employers with 250 or more employees are coming in 2027 but now is the time to start. Employers will need to publish a gender pay gap action plan alongside their annual report and produce a menopause action plan setting out workplace support. We recommend all employers consider this, regardless of size.
What to do: Begin your action planning now. Review current policies, engage employees, and identify gaps. Smaller employers should consider developing voluntary plans as a signal of good practice. Consider watching the recording of our recent webinar on developing a menopause action plan.
Changes to recognition thresholds and access rights make it easier for trade unions to secure statutory recognition and operate within workplaces. Worker protections for those participating in union activities are also strengthened.
What to do: Review your employee relations approach and direct communication channels. If you already recognise a union, check your recognition agreement reflects the updated framework.
A new enforcement body consolidating HMRC’s minimum wage team, the Employment Agency Standards Inspectorate, and the Gangmasters and Labour Abuse Authority. It will proactively investigate breaches of employment rights, including holiday pay and SSP, meaning employers can no longer rely on workers’ reluctance to bring tribunal claims.
What to do: Audit your compliance on minimum wage, holiday pay, and SSP now. Ensure your payroll is accurate and well-documented and address any known gaps before enforcement activity begins.
April’s changes are just the beginning. Whether you employ five or five hundred people, further reforms throughout the remainder of 2026 and into 2027 will affect your policies, contracts, costs, and risk exposure. Key areas include unfair dismissal protection, fire and rehire restrictions, flexible working rights, and enhanced trade union rights, among others.
Staying ahead is essential to remain compliant and avoid disruption to business operations. At Reality HR we are here to help you plan, prioritise, and act.
To help you navigate these changes, we have developed a suite of practical resources:
Get in touch
The Employment Rights Act 2025 marks a pivotal moment for UK employers. If you have questions about how any of these changes affect your business, or if you are unsure where to start, please do not hesitate to get in touch with me directly. I am happy to talk through your situation and help you put the right steps in place.
THE AUTHOR
HR Consultant
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