New Employment Rights – But What About The Extra Romper Suit!

The Employment Rights Act 2025 represents one of the most significant reforms to UK employment law in recent years. From 6 April 2026, a new father could walk straight into his first day on the job, announce the imminent arrival of a child, and immediately give notice requesting paternity leave, a right now granted from day one. 

He will, however, still need to wait the usual 26 weeks before becoming eligible for statutory paternity pay, which is rather like being handed a new romper suit but being told that, until those 26 weeks have passed, you might not actually be able to afford to buy the extra ones you need. Unless, of course, he happens to faint at the sight of blood during the birth, bumps his head on the hospital floor, and finds himself needing sick leave. In that case, the statutory protections are more generous: statutory sick pay will now be available from the very first day of employment. While the pitter-patter of tiny feet may therefore take some time to reach his bank balance, the pitter-patter of a business owner's heart prompted by the prospect of paying sick pay immediately may begin somewhat sooner.

Although the Employment Rights Act 2025 received Royal Assent on 18 December 2025, its provisions are incremental. Some significant reforms will come into force on 6 April 2026 and this article focuses on those changes. Additional changes from 7 October 2026 and continuing into 2027 will be considered in other Hunter's articles. This article does not address the Act's provisions relating to trade union recognition and industrial relations and the repeal of the Trade Union Act 2016, which are subject to separate and more complex reforms.

One of the most significant reforms concerns family-related leave rights. From 6 April 2026, employees gain day-one rights to both paternity leave (either 1 or 2 weeks leave) and unpaid parental leave (up to 18 weeks). Under the previous legal framework set out in the Employment Rights Act 1996 and associated regulations, employees were required to have 26 weeks' continuous service with their employer before qualifying for statutory paternity leave, and one year of service before becoming entitled to take unpaid parental leave. The new legislation removes these qualifying periods for the right to take the leave itself. As a result, eligible employees will be able to take paternity leave and parental leave from the first day of employment, if they meet the relevant notice (shortened to 28 days until 25 July 2025), eligibility and relationship requirements and the necessary relationship to the child.

However, although the right to take paternity leave becomes a day-one entitlement, the right to statutory paternity pay continues to require a minimum period of service. A new father or partner who wishes to receive statutory paternity pay must still have at least 26 weeks' continuous employment with the employer by the relevant qualifying week. In addition, statutory paternity pay will increase in April 2026 as part of the routine annual uprating of statutory family-related payments. This means that while employees may take paternity leave immediately after starting a new job, those who have not yet met the 26-week service requirement may need to take that leave unpaid.

The Act also introduces greater flexibility in the relationship between paternity leave and shared parental leave. Under previous legislation, if a parent had already taken shared parental leave, they could not subsequently take statutory paternity leave. This restriction limited flexibility for families and discouraged some parents from making use of shared parental leave arrangements. From April 2026, this rule is removed. Parents who have taken shared parental leave will still be able to take paternity leave afterwards, provided that the eligibility requirements are satisfied. The aim of this reform is to give families greater freedom to organise childcare arrangements in a way that best suits their circumstances.

Another major set of reforms concerns statutory sick pay (SSP). From 6 April 2026, two significant changes will expand access to sick pay. First, the traditional three-day waiting period is abolished, meaning that SSP will be payable from the first day of sickness absence rather than from the fourth day. Secondly, the lower earnings limit for eligibility is removed. Previously, employees earning below this threshold were not entitled to SSP at all. The removal of this requirement means that lower-paid workers will now qualify for SSP, significantly widening the number of employees covered by the system.

At the same time, a new calculation method will apply to employees and certain workers with lower earnings. Employees who earn below the previous earnings threshold will receive the lower of the standard SSP rate or 80 per cent of their normal weekly earnings. This rule is intended to ensure that lower-paid workers still receive financial support during periods of illness while preventing statutory sick pay from exceeding their usual level of income. Taken together, these reforms aim to reduce financial hardship when employees fall ill and to discourage situations in which workers feel compelled to attend work despite sickness because they cannot afford not to.

The Act also strengthens protections relating to collective redundancies. Where an employer proposes to dismiss 20 or more employees within a specified period, they are required to consult with appropriate employee representatives before the redundancies take effect. If an employer fails to comply with these consultation obligations, an employment tribunal may award a protective award to affected employees. Previously, the maximum protective award was 90 days' gross pay (and in most cases uncapped) per employee. From April 2026, this maximum will increase to 180 days' pay, effectively doubling the potential financial penalty. The intention is to encourage employers to comply with consultation requirements and to ensure that employees are properly informed and consulted during significant workplace restructuring.

Another reform concerns whistleblowing protections, particularly in relation to workplace harassment. From 6 April 2026, disclosures relating to sexual harassment will be recognised as capable of constituting a qualifying disclosure under the whistleblowing provisions of the Employment Rights Act 1996 (S43B). This means that workers who report sexual harassment or related misconduct may benefit from legal protection against dismissal or other detrimental treatment. If a worker suffers retaliation as a result of making such a disclosure, they may bring a claim before an employment tribunal. The reform is intended to encourage reporting of harassment and to promote safer and more accountable workplace cultures.

Finally, the legislation introduces changes aimed at strengthening the enforcement of employment rights through the creation of a new enforcement body, commonly referred to as the Fair Work Agency. The agency is intended to bring together a number of existing labour market enforcement functions and will oversee compliance with key employment standards, including minimum wage requirements, holiday pay, SSP entitlements and to combat Modern Slavery by investigating labour exploitation and enforcing labour market laws. The Fair Work Agency will have robust powers to investigate and tackle employers flouting the law, including workplace inspections, civil penalties for underpayments, and the ability to bring proceedings on workers' behalf. It will also provide support to businesses on following employment laws, helping create a level playing field for all where those who want to do the right thing aren't undercut by those who don't. The overall aim is to improve the practical enforcement of workplace rights and ensure that statutory protections are not merely theoretical. Matthew Taylor (author of the Taylor review which emphasizes that “all work in the UK economy should be fair and decent with realistic scope for development and fulfilment”) is to chair this new agency. It will bring together the responsibilities of three existing enforcement bodies to create a single agency, ending the current fragmented system so that workers and employers know where to turn to for support.

Overall, the measures coming into force on 6 April 2026 represent an important stage in the implementation of the Employment Rights Act 2025. All this means, of course, that employers should review more than their policies, procedures, and employment contracts. In addition, employers should ensure payroll systems reflect SSP from the first day of absence and check that occupational sick pay provisions, Group Income Protection and other occupational sick-pay insurance arrangements are reviewed and updated where necessary so that policy terms, waiting periods, and SSP offsets align with the new ERA 2025 rules, and contractual references to waiting days and pay are also aligned with the new rules. Employers should also consider any implications for payroll processes and pension contributions  under the Pensions Act 2008, particularly to ensure payroll and pension contributions correctly reflect SSP and any occupational sick pay, so statutory and scheme requirements are met.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.