Employment Rights Act changes coming into force in April 2026 represent some of the most significant reforms to UK employment law in decades. The Employment Rights Act 2025 (often referred to as the Employment Rights Bill) introduces new Day One employment rights, expands worker protections, and places clear legal obligations on employers to take reasonable steps to support employees and prevent workplace harm.

For business owners, particularly those employing low hours workers or operating in hospitality, retail or care, these reforms will require practical changes to contracts, payroll, policies and management behaviour.

Below, we break down the most important changes and what employers need to do now.

Employment Rights Act 2025 and UK Employment Law: What’s Changed?

The Employment Rights Act 2025 updates the wider rights act framework and strengthens individual and collective employment rights across pay, leave, dismissal and representation. It also introduces a new Fair Work Agency to enforce standards such as the national minimum wage, holiday pay and sick pay, including within umbrella companies.

Employers must now:

• Inform workers of their rights from Day One
• Take reasonable steps to prevent workplace harassment
• Strengthen protections around dismissal, redundancy and whistleblowing

Failure to comply increases exposure to employment tribunal claims, including claims for unfair dismissal, unpaid statutory sick pay SSP, and discrimination under the Equality Act.

Paternity Leave, Bereaved Partner’s Paternity Leave and Unpaid Parental Leave

Paternity Leave and Unpaid Parental Leave as Day One Rights

From 6 April 2026, paternity leave and unpaid parental leave are available from Day One of employment. This includes:

• Paternity leave and unpaid parental leave for fathers, partners and adopters
• Expanded leave and unpaid parental rights where the primary adopter dies
• New provisions to enable bereaved fathers and partners to take up to 52 weeks’ leave

The introduction of bereaved partner’s paternity leave applies where a child’s mother or primary adopter dies before the child’s first birthday.

Employers must update policies covering:

• Parental leave
• Paternity leave
• Flexible return‑to‑work arrangements

Statutory Sick Pay, Lower Earnings Limit and Sick Pay Reform

Statutory Sick Pay as a Day One Employment Right

Statutory sick pay is now a Day One entitlement under the employment rights act, with major reforms including:

• Removal of the lower earnings limit
• No three‑day waiting period
• Payment of the lower of the standard SSP rate or 80% of average weekly earnings

This significantly affects low hours workers, those on hours contracts, and variable‑pay staff. Employers who fail to pay SSP correctly risk enforcement action from the Fair Work Agency.

Whistleblowing Protections and Sexual Harassment Disclosure

Strengthened Whistleblowing Protections Under Employment Law

The whistleblowing law has been expanded so that:

• Sexual harassment disclosure is now explicitly protected
• Workers who report sexual harassment are protected from detriment or dismissal
• Employees can bring employment tribunal claims if an employer fails to act

This sits alongside new duties to prevent sexual harassment by taking reasonable steps, including:

• Clear reporting routes
• Manager training
• Written action plans and draft codes of practice

Non‑compliance increases the risk of compensation uplifts in the employment tribunal.

Non‑Disclosure Agreements and Workplace Harassment

Limits on Non‑Disclosure Agreements

The use of non disclosure agreements has been restricted. Employers can no longer use NDAs to prevent workers from:

• Reporting workplace harassment
• Making a sexual harassment disclosure
• Speaking to regulators or trade unions

This reinforces transparency and supports gender equality and closing the gender pay gap.

Trade Union Recognition Process and Trade Unions’ Rights

Changes to the Trade Union Recognition Process

The trade union recognition process has been simplified under the employment rights act changes, making it easier for trade unions to gain statutory recognition.

Key changes include:

• Lower thresholds for recognition
• Expanded rights for trade union representatives and union equality representatives
• Greater access to workplaces for union officials

The Central Arbitration Committee now has broader powers to determine:

• The proposed bargaining unit
• Whether recognition should be imposed

Employers must also engage in collective consultation obligations and avoid actions that undermine trade union members or provoke industrial action.

Collective Redundancy, Reasonable Notice and Protective Awards

Collective Redundancy Obligations Explained

The threshold for triggering collective redundancy obligations has changed, increasing employer exposure to:

• Collective redundancy claims
• A higher maximum protective award

Where an employer fails to consult properly, an affected employee can claim a collective redundancy protective award of up to 180 days’ pay.

Employers must:

• Provide reasonable notice
• Consult meaningfully with employee representatives
• Follow updated collective redundancy obligations under employment law

Flexible Working, Unfair Dismissal and Guaranteed Hours

Employees now have enhanced rights to:

• Submit a flexible working request from Day One
• Challenge dismissals linked to flexibility, pregnancy or leave
• Claim unfair dismissal rights earlier

The Act also strengthens protections around:

• Guaranteed hours
• Exploitative hours contracts

Failure to comply may allow employees to claim unfair dismissal at an employment tribunal.

What Employers Should Do Now

To stay compliant with UK employment law, employers should:

• Review contracts and handbooks
• Update sickness, leave and redundancy policies
• Train managers on harassment, whistleblowing and consultation
• Prepare for increased enforcement by the Fair Work Agency

Supporting Employees While Protecting Your Business

These reforms aim to strengthen protections while encouraging fair treatment at work. For employers, the risk lies not in the law itself, but in failing to adapt early.

If you need support navigating the Employment Rights Act 2025, updating payroll systems, or understanding how these changes affect your staffing costs, HLWA can help you plan ahead with clarity and confidence.