The United Kingdom’s employment landscape is experiencing its most substantial transformation in decades with the phased implementation of the Employment Rights Act 2025 (ERA 2025). Having received Royal Assent last December, the legislation is being rolled out through 2026 and into 2027, introducing extensive reforms impacting various aspects of employer-employee relations.
A series of key provisions came into effect today, 6 April 2026, demanding immediate attention from businesses. Among these is the expansion of day-one employment rights to include paternity leave, meaning the previous 26-week continuous service requirement for taking paternity leave has been removed.
However, eligibility for statutory paternity pay continues to necessitate 26 weeks of continuous service.
Also, employees are now permitted to take paternity leave even after utilising shared parental leave, offering greater flexibility. A new Bereaved Partner’s Paternity Leave, a day-one right allowing up to 52 weeks of unpaid leave in specific circumstances, has also been introduced.
Significant changes to Statutory Sick Pay (SSP) also take effect from today. The three-day waiting period for SSP has been abolished, making it payable from the first day of sickness absence.
Additionally, the Lower Earnings Limit for SSP eligibility has been removed, ensuring all employees can now qualify. For those earning below the previous limit, SSP will be calculated at the lower of the prescribed weekly rate or 80% of their average weekly earnings.
The weekly rate for SSP has increased to £123.25. Statutory Maternity Pay, Adoption Pay, Shared Parental Pay, and Maternity Allowance have all seen their weekly rates increase to £194.32.
Today also marks the commencement of a simplified trade union recognition process under the ERA 2025. Changes include the removal of the requirement for unions to demonstrate likely majority support among workers for recognition, and the abolition of the 40% support threshold in ballots. Unions will now only require a simple majority of votes cast to secure recognition.
The initial 10% membership threshold for a Central Arbitration Committee (CAC) application is retained but may be adjusted to between 2% and 10% via future regulations.
Employers are encouraged to foster strong internal communication channels and consider workplace councils to maintain positive employee relations, reducing the perceived need for external union intervention.
From October 2026, employers will also be mandated to provide new employees with a written statement affirming their right to join a trade union.
Enhanced whistleblowing protections are another crucial element effective from 6 April 2026. Disclosures related to sexual harassment will now expressly qualify as protected disclosures, affording whistleblowers protection from victimisation and unfair dismissal.
Looking ahead, October 2026 will see the reintroduction and strengthening of employer liability for third-party harassment. Organisations will be held responsible for harassment perpetrated by clients, customers, or other third parties against their employees if they fail to take “all reasonable steps” to prevent such incidents.
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Significant changes to collective redundancy consultation provisions are now in force. The maximum protective award that an employment tribunal can impose for an employer’s failure to properly consult staff during collective redundancy processes has doubled from 90 days’ pay to 180 days’ pay per affected employee. This substantially increases the financial risk for organisations that do not adhere to correct procedures for dismissals occurring on or after 6 April 2026.
Further reforms, including the introduction of an organisation-wide trigger for collective consultation, are anticipated in 2027. Also in 2027, the qualifying period for unfair dismissal claims will be reduced to six months, and the compensatory award cap for unfair dismissal will be removed.
These wide-ranging changes necessitate that employers review and update internal policies, conduct training, and ensure payroll and HR systems are compliant to navigate the evolving regulatory landscape effectively.
