Journey

Hiring your first employee after April 2026

Updated hiring journey incorporating Employment Rights Act 2025 day-one rights and contract requirements. Covers employment contracts, SSP, family leave, and compliance essentials for new employers.

Starting Updated 3 November 2026

Hiring your first employee: what you need to know

Hiring your first employee is a significant step. This journey walks you through the key requirements, incorporating the Employment Rights Act 2025 changes that affect new employers from April 2026.

Time needed: 30 minutes to complete.

  1. Before you hire

    Before taking on your first employee, you need to set up several things:

    gov.uk

    Register as an employer (opens in a new tab)

    How to register for PAYE with HMRC

  2. Prepare the employment contract

    All employees must receive a written statement of employment particulars on or before their first day. The Employment Rights Act 2025 changes several contract clauses, such as sick pay and parental leave, and adds a statement of trade union rights from 1 January 2027.

    Updating employment contracts for ERA 2025

    Checklist of contract changes needed under ERA 2025

  3. Check right to work

    You must check that every employee has the legal right to work in the UK before they start. This applies to all employees, including British citizens.

    gov.uk

    Check an employee's right to work (opens in a new tab)

    Government guidance on right to work checks

  4. Set up payroll correctly

    Your payroll must be set up to handle PAYE, National Insurance, and statutory payments from day one. The ERA 2025 changes SSP rules significantly.

    SSP from day one
    No waiting days, no lower earnings limit
    SSP rate
    80% of weekly earnings OR flat rate, whichever is lower
    Paternity pay
    Statutory Paternity Pay still needs 26 weeks of continuous employment and earnings above the Lower Earnings Limit (£129/week in 2026/27)
    Auto-enrolment
    Must enrol eligible employees in workplace pension from day one

    Statutory Sick Pay: employer guide

    How SSP works under the current rules

  5. Understand day-one leave entitlements

    Under the ERA 2025, several leave entitlements are available from the first day of employment. Your policies must reflect this.

    Paternity leave
    Day-one right to 1 or 2 weeks' leave from 6 April 2026, with no minimum service (Statutory Paternity Pay still has its own conditions)
    Unpaid parental leave
    Day-one right - 18 weeks per child (no 1-year service requirement)
    Bereavement leave
    Parental bereavement leave is already a day-one right; a wider bereavement leave right, including pregnancy loss, is due in April 2027
    Unfair dismissal protection
    From 6 months' service (from January 2027)
    Annual leave
    5.6 weeks (28 days for full-time) - accrues from day one

    Family leave: employer checklist

    Checklist for implementing day-one family leave entitlements

  6. Health and safety basics

    As soon as you employ someone, you have health and safety obligations:

    hse.gov.uk

    Health and safety for employers (opens in a new tab)

    HSE guidance on employer health and safety duties

  7. Know about the Fair Work Agency

    The Fair Work Agency (FWA) launched on 1 April 2026 as the unified enforcement body for employment rights. It enforces National Minimum Wage, SSP, holiday pay, and employment agency rules.

    As a new employer, ensure you are compliant from the start - the FWA actively targets non-compliance.

    Fair Work Agency: what employers need to know

    Overview of the FWA and what it enforces

Summary checklist

Next steps

  • Complete the ERA 2025 compliance checklist for a full review of your obligations
  • Set up your payroll before your employee's start date
  • Provide the written statement on or before day one

ERA 2025 compliance checklist

Quick compliance check for all ERA 2025 changes