Employment Rights Act 2025: Key April 2026 Changes Employers Need to Prepare For

Posted on 20 May, 2026 in Employment Law for Employers

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April 2026 marks one of the most significant moments in UK employment law for years. The Employment Rights Act 2025 introduces a raft of reforms that affect how businesses handle sickness absence, redundancy, whistleblowing, annual leave, and more.

For employers, these are not minor adjustments. They are meaningful changes that require real preparation, and the window to act is shorter than it might feel.

For employees and workers, the reforms represent a genuine strengthening of workplace rights - changes that could make a real difference to your day-to-day experience at work.

Here is what is changing, when it takes effect, and what you should be doing now.

When do the April 2026 employment law changes come into force?

Most of the key reforms took effect on 6 April 2026. The Fair Work Agency, a new enforcement body, was established on 7 April 2026.

Key changes from 6 April 2026

Statutory Sick Pay (SSP) reforms

The 2026 changes to Statutory Sick Pay (SSP) are among the most impactful in this round of reforms and for many businesses, they will require immediate attention.

From 6 April 2026:

SSP will be payable from day one of sickness, removing the current three-day waiting period
The lower earnings limit will be abolished, extending eligibility to employees who previously did not qualify
SSP will be payable at £123.25 per week (2026/27 rate) or 80% of an employee’s normal weekly earnings, whichever is lower

This increases both the number of people who qualify and the cost exposure from day one of any absence. Payroll systems and sickness absence policies will need to be updated.

If you are an employee, it means faster financial support when you are unwell, and for the first time, SSP eligibility, even if your earnings have previously kept you out of scope.

Collective redundancy

The maximum protective award for failing to consult properly on collective redundancies will increase from 90 days to 180 days’ gross pay per affected employee.

That is a significant increase in the financial risk of HR non-compliance. If your business is considering any restructuring, it’s important to ensure you follow the correct process.

Whistleblowing protections extended

Sexual harassment is now explicitly recognised as a protected disclosure under whistleblowing legislation, meaning that reporting it will attract the same legal protections as any other qualifying whistleblowing disclosure.

Whistleblowing and anti-harassment policies will need to be updated to reflect this change, and internal reporting procedures should be reviewed to make sure that anyone who raises a concern is properly protected from detriment or dismissal.

Trade union recognition

New provisions simplifying the trade union recognition process come into force in April 2026, making it easier for unions to gain formal recognition in workplaces where they do not currently have it.

For some employers, this will be new territory. Understanding the process and being prepared to engage constructively if a recognition request is made will put you in a much stronger position.

Annual leave record-keeping requirements

Employers are now required to keep detailed annual leave records for six years.

If your current approach relies on spreadsheets or informal systems, now is the time to address it. Robust record-keeping protects you in the event of a dispute, as well as being a legal obligation.

Changes from 7 April 2026

Introduction of the Fair Work Agency

The Fair Work Agency is established from 7 April 2026 as a new body with broad powers to investigate and enforce employment rights.

This signals a more active enforcement environment for businesses. Policies that look right on paper need to be genuinely embedded and working in practice. For employees, it provides improved and more accessible routes to enforce your rights if they are not being respected.

What should employers do now?

Changes to the Employment Rights Act 2025 came into force from 6th April 2026, so employers must take action now to ensure they are meeting their legal obligations under the new rules.

The key employer obligations from April 2026 are:

Update sickness absence and SSP policies to reflect the removal of waiting days, extended eligibility, and the new rate structure
Check that payroll systems can calculate SSP correctly from day one of absence
Review annual leave record-keeping and invest in systems that retain the required detail for six years
Update whistleblowing and anti-harassment policies to include sexual harassment as a protected disclosure
Revisit collective redundancy procedures
Consider the approach to employee relations and prepare for potential trade union activity
Familiarise with the Fair Work Agency and what enhanced enforcement scrutiny may mean for the business

If several of these need attention at once, it can feel like a lot. That is exactly where having the right legal support makes a difference.

For more on your rights as an employer, visit our employment law for employers page.

What does the Employment Rights Act 2025 mean for employees?

The April 2026 reforms are good news for employees and workers.

It means:

SSP from day one - no more waiting four days before financial support begins
Wider SSP eligibility - employees who previously did not qualify due to low earnings will now be entitled to SSP
Stronger whistleblowing protection - reporting sexual harassment now attracts formal legal protection
Improved enforcement routes - the Fair Work Agency provides a clearer path if rights are not being upheld
Potential changes to union representation - trade union recognition may become available in more workplaces

For more on your rights as an employee, visit our employment law for employees page.

Get advice on what the April 2026 changes mean for your business

Need advice on how the April 2026 Employment Rights Act changes could affect your workplace? Whether it’s help reviewing policies, updating procedures, or understanding your obligations under the new rules, our employment law team is here to help.

Mark Ridley leads our employment law department and works with businesses to provide clear, practical advice focused on employment law compliance. Get in touch with our employment law team for practical guidance - call us on 024 7663 2121 or email info@bandhattonbutton.com.