Employment Rights Act 2025: changes taking effect in April 2026

April 2026 marks the first significant implementation phase of reforms under the Employment Rights Act 2025 (ERA 2025). Although further reforms will follow in future phases, many of the changes coming into force from April will carry operational, HR and cost implications for employers. Changes to union recognition will also take effect in April and we will report on this separately.

This blog provides a practical checklist for employers, setting out key questions to help employers check that they are ready for the April changes. For full details of these and other reforms being brought in by the ERA 2025, see our insights page.

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Collective redundancy: protective award doubled

What is changing?

The maximum protective award for failure to comply with collective consultation obligations will increase from 90 days’ pay to 180 days’ pay. The ERA will also make changes to the 'one establishment' test for collective consultation, but that is not due to come into effect until 2027.

Why it matters

The change significantly increases the financial exposure where employers fail to inform and consult collectively, particularly in large scale restructurings or insolvency scenarios. It also reinforces the importance of early planning and documentation.

Checklist for employers

• Do decision makers understand when collective consultation is triggered (20+ redundancies at one establishment within a 90 day period)?
• If you are proposing redundancies, are you accurately tracking the number of dismissals being proposed?
• Are restructuring timelines realistic, allowing full consultation periods to be completed?
• Are consultation processes documented and centrally overseen to ensure a consistent, compliant approach (and a clear audit trail), rather than being run differently to local teams?
• Are managers aware that failures in relation to process can result in liability, with increased maximum awards from April 2026?

Family leave: paternity and unpaid parental leave become 'day one' rights

What is changing?

Paternity leave and unpaid parental leave will become available from day one of employment, removing the current qualifying service requirements (26 weeks’ service for paternity leave and one year’s service for unpaid parental leave). Provisions over pay are not changing.

Why it matters

This change requires employers to treat family leave entitlements as immediate statutory rights. It also increases the likelihood that new starters may take leave very early in employment, including during probation (which may become significant when the unfair dismissal qualifying period reduces to six months in January 2027).

Checklist for employers

• Are HR and payroll teams aware that eligibility will commence from day one?
• Have family leave policies been updated to remove qualifying service references (while continuing to distinguish between leave and pay conditions)?
• Are probation and performance processes designed to accommodate early periods of family leave?

Statutory sick pay: lower threshold and waiting days removed

What is changing?

Statutory Sick Pay (SSP) will be payable:

• Regardless of earnings, with the Lower Earnings Limit removed (previously £125 per week).
• From day one of sickness absence, with waiting days removed.

Why it matters

This materially broadens SSP coverage giving more employees an entitlement to SSP and sooner. This may increase costs for employers, particularly for those with casual, variable hours or low paid workers or high levels of short term sickness absence.

Checklist for employers

• Has payroll been updated to calculate SSP from day one for all eligible workers?
• Do sickness absence policies reflect the new SSP entitlement?
• Are managers trained not to conflate statutory entitlement with any contractual or discretionary sick pay enhancements?
• Are appropriate steps in place to support employee wellbeing and help manage short-term sickness effectively?

Whistleblowing: sexual harassment disclosures protected

What is changing?

Disclosures that sexual harassment has occurred, is occurring or is likely to occur will now expressly fall within the scope of protected whistleblowing disclosures.

Why it matters

This creates overlap between whistleblowing law, discrimination law and the new positive duty to prevent sexual harassment. Mishandling reports could expose employers to multiple claims. These changes reinforce the need for joined‑up handling of complaints and investigation processes across HR, legal and compliance functions.

Checklist for employers

• Do whistleblowing policies explicitly reference sexual harassment disclosures?
• Are reporting channels clear, confidential and accessible?
• Are managers and investigators trained to recognise when a complaint may also amount to a protected disclosure
• Are retaliation and detriment risks actively identified and managed following any disclosure?

Bereaved partners’ paternity leave: up to 52 weeks

What is changing?

A new right will apply allowing bereaved partners to take up to 52 weeks’ paternity leave where a child’s birth mother or primary adopter dies within 52 weeks of the child’s birth or placement for adoption.

Why it matters

This is both a sensitive and operationally significant change. Employers will need clear processes that balance compassion, legal compliance and workforce planning.

Checklist for employers

• Have paternity, family leave and bereavement policies been updated to reflect the new right?
• Are managers trained to respond consistently and sensitively?
• Is there clarity on how this leave interacts with other statutory and contractual leave?
• Is there a mechanism to ensure temporary cover and return to work processes can be considered?

Gender equality: voluntary action plans confirmed

What is changing?

Employers are being encouraged by the government to voluntarily publish:

1. Gender pay gap action plans
2. Menopause action plans

This is an early implementation phase, intended to allow employers time to develop and embed meaningful action plans ahead of future mandatory requirements.

Why it matters?

These gender pay gap and menopause action plans are part of the government’s new gender equality framework. While voluntary from 6 April 2026, they are expected to become mandatory for large employers (with 250+ employees) from Spring 2027.

Although not yet legally, employers may wish to publish action plans on a voluntary basis now as part of their ESG, governance and people strategies and to meet expectations of employees, regulators and stakeholders.

Checklist for employers

• Have you familiarised yourself with the recently published guidance?
• If you are an employer with 250 or more employees, have you started to considering what will required ahead of mandatory introduction in 2027?
• Have senior leaders considered whether adopting voluntary action plans aligns with organisational values?
• Where action plans already exist, are they credible, current and properly resourced?

Holiday pay and working time records: new duty to keep annual leave records

What is changing?

Employers will be under a statutory duty to keep adequate records of workers’ statutory annual leave entitlement and the annual leave actually taken, including:

• paid statutory leave;
• any carried over leave; and
• any leave accrued under the irregular hours or part year worker regimes.

Records must be kept for six years from the date on which they were made.

Why it matters

This duty requires employers to be able to demonstrate compliance with the existing obligation to ensure workers are able to take their full statutory annual leave entitlement and are properly paid for that leave. Failure to comply will be a criminal offence, punishable with a fine up to the statutory maximum. With the introduction of the Fair Work Agency and its new enforcement powers, poor record keeping may therefore expose employers to enforcement action, as well as individual claims.

Employers will need to ensure that their records are complete, accurate and maintained in line with statutory requirements, specifically:

• that workers received their statutory leave entitlement;
• that calculations (particularly for irregular hours and part year workers) are accurate; and
• that carry over rules have been correctly applied.

Checklist for employers

• Are robust systems in place to record statutory annual leave accrual, taken leave, and any carry over?
• Are payroll and timekeeping systems aligned so that holiday pay calculations are transparent documented and auditable?
• Have policies and internal processes been updated to reflect the new record keeping obligations?

Fair Work Agency: enforcement landscape changes

What is changing?

The Fair Work Agency will be established on 7 April 2026, bringing together enforcement functions across areas including national minimum wage, holiday pay and statutory payments. It will have the power to inspect business premises and documentation, and issue civil penalties where non-compliance is identified.

Why it matters

This signals a shift towards more proactive and coordinated enforcement, rather than reliance on individual claims. Employers should expect greater scrutiny and a more joined up regulatory approach to enforcement.

Checklist for employers

• Are statutory payment processes (including SSP, holiday pay and pay for family leave) robust and auditable?
• Can relevant records withstand external inspection?
• Is responsibility for compliance clearly allocated and understood within the organisation?

Final thoughts

April 2026 represents a meaningful shift in the employment law landscape, introducing a number of key reforms under the ERA 2025. Responding effectively is not just about policy rewrites (though these remain important), but also making sure that changes are properly understood and embedded in practice.

With the changes due to come into effect imminently, this is a timely opportunity for organisation to check that:

• Managers and staff understand the upcoming changes and how they affect day‑to‑day practice.
• Targeted manager and staff training has been delivered as required.
• Payroll, working time, holiday and other employment records are complete and accurate.
• Internal processes are up to date, with clear checks, controls and escalation routes.
• There is meaningful senior oversight and ownership of compliance.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, March 2026