ERA 2025 April 2026 compliance checklist for employers

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 employers in England, Scotland, and Wales. The statutory sick pay changes also apply in Northern Ireland. The Fair Work Agency is established the next day, on 7 April 2026.

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

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.
• New rate calculation: For each employee, calculate 80% of average weekly earnings. Compare this to the flat SSP rate (£123.25 a week for 2026 to 2027). 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

Two 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 length of leave (1 or 2 weeks) is unchanged. Statutory Paternity Pay still requires 26 weeks' continuous employment and average earnings of at least £129 a week.
• 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 is not part of this change. The Act extends bereavement leave to a wider range of bereaved people, including after pregnancy loss, but the government's planned date for this is 2027.

Action required: policies and templates

Review your employee handbook and leave policies. Remove any references to qualifying periods for paternity and parental leave. Communicate the changes to line managers who handle leave requests.

The duty to give workers a written statement of their right to join a trade union is not part of the April changes. The government's planned date for it is 30 October 2026, subject to parliamentary processes.

Prepare for the Fair Work Agency

The Fair Work Agency is established on 7 April 2026 as an executive agency of the Department for Business and Trade. It brings together the work of the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority and the Office of the Director of Labour Market Enforcement.

From 7 April 2026 the Fair Work Agency enforces the National Minimum Wage (HMRC carries out this enforcement for the agency under contract until it fully transfers in April 2027), employment agency standards, gangmasters licensing, and modern slavery and labour exploitation. The Act also provides for it to enforce statutory sick pay and holiday pay, but those powers are not in force from April 2026; the agency is preparing to enforce holiday pay from 2027. 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, for dismissals taking effect on or after 6 April 2026. 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. Review collective redundancy procedures against 180-day protective award
7. Review zero-hours contracts and begin tracking actual hours worked
8. Train HR staff and line managers on all April changes
9. Communicate changes to employees