Change event: Employment Rights Act 2025 receives Royal Assent Effective 6 April 2026

What takes effect on 6 April 2026

The Employment Rights Act 2025 is being implemented in phases. The first major wave of changes arrives on 6 April 2026, affecting every employer in England, Scotland, and Wales. The Fair Work Agency launches slightly earlier on 1 April 2026.

This checklist covers the changes you must prepare for by April and the specific actions required.

1 April 2026
Fair Work Agency launches — unified enforcement of NMW, SSP, holiday pay, and employment agency standards
6 April 2026
SSP from day one of sickness — waiting days removed, lower earnings limit abolished
6 April 2026
SSP rate — 80% of weekly earnings or flat rate, whichever is lower
6 April 2026
Paternity leave — available from day one of employment (26-week qualifying period removed)
6 April 2026
Parental leave — available from day one of employment (1-year qualifying period removed)
6 April 2026
Bereavement leave — new statutory entitlement from day one, covering a wider range of relationships
6 April 2026
Protective award for collective redundancy increased from 90 to 180 days' pay
6 April 2026
Written statements must notify employees of their right to join a trade union

Update payroll for SSP changes

The SSP changes are the most operationally significant reform in April 2026. Three things change at once:

  • No waiting days: SSP is payable from the first qualifying day of sickness absence. The current 3-day unpaid waiting period is removed.
  • No lower earnings limit: All employees are eligible for SSP regardless of earnings. Approximately 1.3 million low-paid workers who were previously ineligible now qualify.
  • New rate calculation: For each employee, calculate 80% of average weekly earnings. Compare this to the flat SSP rate (currently £123.25/week). Pay whichever is lower. Low-paid employees receive 80% of earnings; higher-paid employees receive the flat rate.

Action required: payroll systems

Contact your payroll software provider or bureau now to confirm their systems will be updated for the April 2026 SSP changes. Your payroll must remove the waiting-day calculation, remove the LEL eligibility check, and calculate the new 80% rate. Test the updated system before April to ensure it handles all employee earnings levels correctly.

Remove family leave qualifying periods

Three family leave entitlements become day-one rights from 6 April 2026:

  • Paternity leave: Currently requires 26 weeks' continuous service. From April, available from day one. The leave itself (1 or 2 weeks) and Statutory Paternity Pay remain unchanged.
  • Parental leave: Currently requires 1 year's continuous service. From April, available from day one. The 18-week entitlement per child remains unchanged.
  • Bereavement leave: A new statutory right from day one, extending beyond the existing parental bereavement leave to cover bereavement for a wider range of close relationships.

Action required: policies and templates

Review your employee handbook and leave policies. Remove any references to qualifying periods for paternity and parental leave. Add bereavement leave as a new entitlement. Update written statement templates to include trade union membership notification. Communicate the changes to line managers who handle leave requests.

Prepare for the Fair Work Agency

The Fair Work Agency launches on 1 April 2026 as a unified enforcement body. It consolidates enforcement currently spread across HMRC (NMW), the Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate.

The Fair Work Agency will enforce National Minimum Wage, statutory sick pay, holiday pay, and employment agency standards. Employers should ensure their compliance with these obligations is robust, as a single body will now have a wider view of enforcement priorities.

Collective redundancy: protective award increase

The maximum protective award for failure to consult on collective redundancies increases from 90 days' pay to 180 days' pay per affected employee. This doubles the financial exposure for employers who fail to follow proper collective redundancy consultation procedures.

If you are planning redundancies affecting 20 or more employees at one establishment, ensure your consultation processes are fully compliant.

Compliance checklist

Complete these actions before 6 April 2026:

  1. Confirm payroll system will be updated for SSP day-one payment, LEL removal, and 80% rate calculation
  2. Identify employees previously ineligible for SSP due to the lower earnings limit
  3. Update sickness absence policy to remove references to waiting days and earnings threshold
  4. Remove qualifying period from paternity leave policy
  5. Remove qualifying period from parental leave policy
  6. Add bereavement leave entitlement to policies
  7. Update written statement template to include trade union membership notification
  8. Review collective redundancy procedures against 180-day protective award
  9. Review zero-hours contracts and begin tracking actual hours worked
  10. Train HR staff and line managers on all April changes
  11. Communicate changes to employees

⚠️ Further changes in October 2026 and January 2027

April 2026 is only the first phase. Fire-and-rehire restrictions and third-party harassment liability take effect on 1 October 2026. The unfair dismissal qualifying period reduces to 6 months from 1 January 2027. Start planning for these changes now — see our full ERA 2025 overview for the complete timeline.

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