The Employment Rights Act 2025 has introduced a series of significant reforms to employment law, many of which have taken effect from 6 April 2026. These changes form part of a phased rollout aimed at strengthening employee protections and modernising workplace practices.
In this article, we highlight the key updates employers should be aware of and consider preparing for now.
Paternity Leave and Parental Rights
From April 2026, there will be notable expansions to family-related leave rights:
- Paternity leave will become a day one right, removing the current 26-week qualifying period.
- Ordinary parental leave (unpaid) will also become a day one entitlement, replacing the current one-year service requirement.
- The existing restriction preventing parents from taking paternity leave after shared parental leave will be removed.
- Eligible fathers and partners will be entitled to take up to 52 weeks of unpaid bereaved partner’s paternity leave where the mother or primary adopter dies, provided the leave is taken within 52 weeks of the child’s birth or placement.
What this means for employers:
Policies and HR systems will need updating to reflect immediate eligibility, and managers should be trained to handle increased flexibility in leave requests.
Statutory Sick Pay (SSP) Reform
Two key changes will apply to statutory sick pay:
- SSP will be payable from day one of illness, rather than day four.
- The lower earnings limit will be removed, expanding eligibility.
Employer impact:
Businesses should expect increased SSP liability and may need to review absence management procedures.
Collective Redundancy: Increased Protective Awards
The maximum protective award for failure to properly consult in collective redundancy situations will double from 90 days’ pay to 180 days’ pay.
>Employer impact:
This significantly increases financial exposure. Employers must ensure strict compliance with consultation obligations.
Whistleblowing and Sexual Harassment
Sexual harassment disclosures will be formally recognised as “qualifying disclosures” under whistleblowing legislation.
This means individuals raising such concerns will benefit from enhanced protection against:
- Detriment; and
- Unfair dismissal.
Employer impact:
Whistleblowing policies should be updated, and internal reporting mechanisms reviewed to ensure compliance.
Gender Pay Gap and Menopause Action Plans
Employers will be expected to develop:
- Gender pay gap action plans; and
- Menopause-related workplace policies.
These requirements will be voluntary from April 2026, but are expected to become mandatory in 2027.
Employer impact:
Forward-thinking employers should begin preparing now to avoid last-minute compliance pressure.
Trade Union Recognition
The process for trade union recognition in the workplace will be simplified, with further guidance expected in an updated Code of Practice (anticipated October 2026).
Employer impact:
Employers may face an increased likelihood of union recognition applications and should review their employee relations strategy.
Holiday Record-Keeping Requirements
From April 2026, employers will be under a statutory obligation to maintain detailed records of:
- Annual leave taken
- Leave carried over
- Holiday pay
- Payments in lieu of holiday
These records must be:
- Retained for at least six years; and
- Maintained in compliance with UK GDPR.
Employer impact:
Robust record-keeping systems will be essential to ensure compliance and avoid disputes.
Preparing for the Changes
These reforms will require:
- Updates to contracts and policies
- Adjustments to payroll and HR systems
- Training for HR teams and line managers
Early preparation will help mitigate risk and ensure a smooth transition.
Need Advice?
If you would like guidance on how these changes may affect your business, or assistance updating your policies and procedures, please get in touch with our employment team.
