The Employment Rights Act 2025: a timeline of February and April reforms

Blog

30.01.2026

The Employment Rights Act 2025 (ERA) is now law, with the first reforms being introduced over the coming months and further changes following later in the year and into 2027. In this blog, we focus on the key changes taking effect in February and April 2026 and outline practical implications and steps employers can take now to prepare.

18 February 2026: what trade union reforms are taking place?

The reforms coming into force from 18 February aim to reduce the administrative burden of organising industrial action and are likely to result in an uptick in union activity. Key changes include:

Lowered thresholds: unions will no longer need to meet the additional 40% support threshold for industrial action in important public services.
Picketing supervisor: the obligation to appoint a picketing supervisor will be removed.
Simplified ballot notice requirements: ballot notices will only need to inform employers of the categories of employees balloted, their workplaces and the total number concerned.
Simplified ballot papers: will only ask whether members support strike action or action short of strike.
Notice period: will be reduced from 14 days to 10 days and unions will no longer need to disclose the number of employees in each category expected to take part.
Longer mandate: successful ballots opened from 18 February 2026 will carry a 12‑month rather than a six-month mandate.
Enhanced protection against dismissal: any dismissal of an employee for taking part in industrial action will automatically be unfair, regardless of how much time has passed (removing the current 12-week 'protected period').
Political funds: new union members will be automatically opted in to political funds unless they choose to opt out.

What does this mean for employers?

These reforms may increase trade union activity by making it much easier for unions to engage workers and organise industrial action.

Employers can prepare by:

building constructive relationships with unions to avoid/minimise potential disruption;
providing training to decision-makers to ensure they engage with unions appropriately; and
strengthening direct communication channels with employees where there is no recognised union, to ensure employees feel informed and heard.

April 2026 is a significant month: new day one rights and a changing enforcement landscape

From new day one rights for employees, to the creation of a new enforcement body, April 2026 is set to be a busy month. Employers should ensure the date is circled in bold in their calendars and start planning now.

Day one rights

The following become day one rights as of 6 April 2026, which the government says delivers on their pre-election commitment to 'make work pay':

Paternity leave: the need for 26 weeks' qualifying service will be removed, as will the restriction on taking paternity leave after a period of shared parental leave. Parents who become eligible under the reforms will be able to give notice of their intention to take leave as early as 18 February 2026.
Unpaid parental leave: the requirement for one year's service will be removed. As above, newly eligible parents will be able to give notice of their intention to take leave from 18 February 2026.
Statutory Sick Pay (SSP): the current three-day waiting period will be removed, as will the lower earnings limit to qualify for payment. Both reforms will greatly expand access to SSP.

In addition, although strictly speaking not part of the ERA, the government intends to introduce a new entitlement of up to 52 weeks’ unpaid paternity leave where the child’s mother or adopter dies during childbirth or within the first year after birth or placement. This will apply to bereavements that occur on or after 6 April 2026. The qualifying period for bereaved fathers and partners to take paternity leave has already been removed, as at the end of 2025.

What does this mean for employers?

The reforms to paternity and unpaid parental leave give greater flexibility to new parents and the publicity around the reforms may increase the number of employees looking to take time away from work.

The changes to SSP will increase costs for employers, as payments will be due from the first day of sickness and individuals who previously earned too little to qualify will now be eligible.

Employers can prepare by:

adjusting long-term planning to account for more employees taking family-related leave;
updating training on family-related leave to ensure the new entitlements are understood;
budgeting for a higher annual SSP spend;
updating payroll and systems to ensure SSP is paid from day one; and
strengthening absence management policies to ensure greater visibility of when and why SSP is claimed.

Collective consultation: compensation doubled

From April 2026, where an employer fails to consult during a collective redundancy, the maximum 'protective' award will double from 90 days to 180 days' pay.

Bearing in mind the additional 25% uplift a tribunal may apply under the updated Statutory Code of Practice on Dismissal and Re-engagement, employers could face a maximum liability of 225 days' pay per employee.

What does this mean for employers?

5,026 cases concerning a failure to consult went to the Employment Tribunal in 2022/23, indicating that misunderstandings in this area are common. They are also going to become significantly more expensive.

Employers can prepare by:

reviewing redundancy procedures;
training HR and decision-makers on consultation standards; and
immediately reviewing the status of any ongoing collective redundancy actions.

Additional details are contained here: Collective redundancies under the Employment Rights Bill.

The Fair Work Agency: a consolidated approach to enforcement

April 2026 will also witness the creation of a new state enforcement body. The Fair Work Agency (FWA) aims to unify a patchwork system of labour market oversight through bringing the enforcement powers of other bodies 'under one roof'.

While many of its functions are not new, employers should note that the FWA will be able to enforce the payment of entitlements such as SSP which are not currently subject to direct state enforcement.

What powers will it have?

Inspection: it will be able to conduct investigations into employers, compel individuals to attend interviews, request information, and enter business premises to examine records where non‑compliance is suspected.
Penalties and underpayment notices: where an employer has failed to pay a statutory entitlement, it may issue a notice of underpayment requiring sums owed to be repaid within 28 days and impose further penalties.
Labour Market Enforcement Orders (LMEOs): these court‑issued orders will require employers to correct unlawful practices. Breaching an LMEO may result in fines or imprisonment.
Legal proceedings: the FWA will have the power to bring employment claims on behalf of workers or support claims already underway.

What does this mean for employers?

While the FWA will likely take some time to gather momentum, employers should take a proactive approach.

Employers can prepare by:

ensuring compliance with key rights;
reviewing areas to be brought within the scope of state enforcement, such as SSP; and
engaging fully and transparently with the FWA, should the need arise.

Further commentary on the FWA can be found here: Employment Rights Act 2025 update: understanding the Fair Work Agency.

Equality Action Plans: voluntary in 2026

From April 2026, employers will be encouraged to adopt Equality Action Plans on a voluntary basis, ahead of these plans becoming mandatory in 2027 for organisations with 250 or more employees.

Although not yet compulsory, early adoption may help employers develop evidence-based actions on gender and menopause‑related workplace issues, strengthen transparency, and identify gaps before compliance becomes a legal requirement.

Whistleblowing protection extended to sexual harassment complaints

From 6 April 2026, a disclosure of sexual harassment will expressly qualify as a 'protected disclosure' under whistleblowing law, meaning workers who raise such concerns will be protected from detriment and unfair dismissal. In practice, this change may have limited day‑to‑day impact, as arguably many disclosures about sexual harassment were already capable of qualifying as whistleblowing because they could be framed as raising a breach of legal obligation (for example, under the Equality Act 2010) or a health and safety risk. The reform mainly provides clarity and removes any doubt, which may encourage more workers to report concerns through formal whistleblowing routes.

Further information

Full details on the reforms being brought in by the ERA are available on our Employment Rights Act 2025 insights page. Information about practical steps employers can take to prepare can be found here: Preparing for change with seven practical steps.

With thanks to Imran Momen, current trainee in the team, for his help preparing this blog.

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