What you need to know about the Employment Rights Act 2025

The Employment Rights Act 2025 received Royal Assent just before Christmas and as a result a number of changes to employees’ rights will come into force in 2026 and 2027.

The first set of changes will happen in April 2026 which includes:

Statutory Sick Pay (SSP)

Currently only those earning over the lower earnings limit (£125 for the 2025/26 Tax Year) and who have completed 3 waiting days are entitled to sick pay.

From 6th April 2026 SSP will be payable from the first day of absence and all workers even those earning below the lower earnings limit will be eligible for SSP.

SSP will be payable at 80% of normal pay or the statutory flat rate, whichever is lower. Where pay fluctuates SSP will be worked out on an average of earnings over an eight-week period.

Impact for employers: This is going to significantly increase SSP costs for employers and is likely to increase employee absences.

Paternity and Parental Leave

From 6th April 2026 the current 26 week notice period for Paternity Leave and the years’ service for Parental Leave will be removed and eligible parents will have these rights from day one of employment.

The 26-week qualifying period for Statutory Paternity Pay remains unchanged as will the notice requirements.

Fair Work Agency

From April 2026, a new Fair Work Agency will be established which will take on the functions of HMRC’s National Minimum Wage Unit, The Gangmasters and Labour Abuse Authority, The Director of Labour Market Enforcement and the Employment Agency Standards Inspectorate.

The Fair Work Agency will have powers including to:

• Enforce statutory employment rights and recover underpayments

• Bring Employment Tribunal claims on behalf of workers, represent them and provide legal support

• Recover enforcement costs from employers for non-compliance

• Inspect workplaces for labour infringements

• Enforce labour market criminal offences

• Require employers to produce relevant documents

Impact for employers: It is likely that the new agency will result in more investigations and enforcement action against employers.

Whistleblowing Protections

From April 2026 disclosures of sexual harassment can qualify for protection under Whistleblowing legislation. This means workers making such disclosures will have protection from detriment or adverse treatment and dismissal.

Any dismissal because of a worker making a protected disclosure of sexual harassment will be automatically unfair.

If you have any further questions, please get in touch.