This briefing provides a high-level overview of the key employment law changes taking effect from April 2026 under the Employment Rights Act 2025. It is intended to support employers in understanding the practical impact of the reforms and preparing their organisations ahead of implementation.
From April 2026, the Employment Rights Act 2025 introduces a number of significant ‘day-one’ employment rights. These reforms primarily affect statutory sick pay and family-related leave, with a focus on improving early access to protections for workers. Employers will need to review contracts, policies, payroll processes and management practices to ensure compliance.
The most significant changes effective from April 2026 are:
- Statutory Sick Pay (SSP) payable from the first day of sickness, with the removal of waiting days and the lower earnings limit.
- Day-one entitlement to take statutory paternity leave (note: pay entitlement remains subject to qualifying criteria).
- Day-one entitlement to unpaid parental leave, removing existing length-of-service requirements.
While some headline reforms under the Act will follow later in 2026–27, these April 2026 changes represent an immediate shift in employer obligations, particularly in relation to payroll and leave administration.
Key Changes
1. Statutory Sick Pay (SSP)
From 6 April 2026, statutory sick pay will be available from the first day of sickness. The lower earnings limit will be removed, bringing more low-paid and part-time workers into scope. SSP will generally be paid at the lower of 80% of average weekly earnings or the statutory SSP rate.
2. Paternity Leave
Employees will have a day-one right to take statutory paternity leave. This removes the current service requirement to take leave. However, entitlement to statutory paternity pay will remain subject to qualifying service and earnings thresholds unless amended by future regulations.
3. Unpaid Parental Leave
The qualifying service requirement for unpaid parental leave will be removed. Employees will be able to request unpaid parental leave from their first day of employment, subject to statutory notice rules.
What This Means for Employers – Checklist
☐ Review and update employment contracts to reflect new day-one leave entitlements.
☐ Update staff handbooks and family leave policies to remove length-of-service conditions.
☐ Review SSP policies and ensure payroll systems can calculate SSP from day one of sickness.
☐ Train line managers on the distinction between entitlement to leave and entitlement to pay.
☐ Review absence management processes to reflect expanded SSP coverage.
☐ Monitor secondary legislation and guidance ahead of implementation.
Next Steps
Employers should begin preparations well ahead of April 2026 to avoid compliance risks. Early policy review, payroll testing and management training will be key to implementing these changes smoothly.
LBJ Consultants can support with policy reviews, contract updates, manager training and practical implementation guidance. Call us on 07984 568523 to discuss how we can help your business.
