The first significant tranche of the changes under the Employment Rights Act 2025 are coming into force imminently on 6 and 7 April 2026. Employers face immediate changes including day‑one rights to parental and paternity leave, statutory sick pay from the first day of absence, doubled penalties for getting collective redundancies wrong, and new whistleblowing protections covering sexual harassment disclosures. At the same time, trade union rights are being expanded and enforcement will increase with the creation of the Fair Work Agency. These changes will require careful planning well before they come into force.
6 April 2026
Protective award for collective redundancies doubles
The maximum protective award for a failure to inform and consult on collective redundancies (currently triggered when an employer proposes to dismiss 20 or more employees as redundant at one establishment within a 90-day period) will double from 90 to 180 days actual pay. What was already a significant penalty is now a very serious incentive to make sure that employers carry out the correct consultation on redundancies. The commencement regulations make it clear that this will not apply to dismissals taking effect before 6 April 2026.
Day 1 right to parental/paternity leave
The right to take parental leave and paternity leave will be available to eligible employees from their first day of employment from 6 April 2026. This aligns paternity and parental leave with other family leave entitlements (such as maternity and adoption leave). In addition, the current requirement to take paternity leave before parental leave will be abolished. Employers should update policies and procedures to reflect this.
Statutory sick pay
The three-day waiting period to receive statutory sick pay (SSP) will be removed so that SSP is payable from the first day of absence. In addition, the lower earnings limit for entitlement is being removed, so that all eligible employees will be entitled to the flat weekly rate of SSP or 80% of their normal weekly earnings, whichever is lower. This change will increase the costs of short-term employee absence, so employers should consider their absence policy and procedures.
Sexual harassment protected disclosures
Whistleblowing protections will be amended to specifically cover reporting that sexual harassment has occurred, is occurring or is likely to occur. Reporting a breach of a legal obligation qualified as a protected disclosure in any event, but this amendment emphasises that these types of reports are covered. Employers should review their whistleblowing and grievance policies in the light of this.
Duty to keep records about holiday and holiday pay
Under this new obligation, an unexpected addition to the 6 April changes, employers will be obliged to start keeping records to show that they have complied with the right to holiday and holiday pay, including the requirement to make a payment in lieu of outstanding holiday on termination of employment, including any holiday carried forward from a previous leave year. Such records will need to be kept for six years from the date on which they were made. The legislation specifies that the records may be “created, maintained and kept in such manner and format as the employer reasonably thinks fit.”
New right to bereaved partners’ paternity leave
Not within the ERA itself, but set out in a separate regulation, this new right will allow an employee to take a single period of leave lasting up to 52 weeks after the birth of a child or their placement for adoption, in situations where the child's primary carer has died during that first year.
Requirements for trade union recognition simplified
The process for union recognition will be simplified in April, so that for a recognition ballot, a current requirement is to be removed (that at least 40% of the workers constituting the bargaining unit support the union) leaving just a test that a simple majority of those voting will be required. Other trade union simplification changes are expected later this year.
Action plans on gender equality and menopause support
From April 2026, employers with 250 or more employees will have the option to produce and publish a voluntary action plan alongside their gender pay gap data. The government has issued a plethora of guidance on action plans and menopause support. See an overview here and a list of actions guidance here.
From spring 2027, these action plans will be mandatory.
7 April 2026
Fair work agency set up
The FWA will be established as a consolidation of other enforcement functions and will immediately be able to enforce the existing powers of these bodies including taking over enforcement of the national minimum wage from HMRC. It will eventually (no set date yet) have the power to enforce other rights such as holiday pay and sick pay. The FWA will also be able to provide legal assistance and bring employment tribunal proceedings on behalf of workers.
ERA bitesize webinars - key actions for employers
We are doing a series of ERA bitesize webinars on six of the key changes in the ERA, giving you clear, practical guidance on what is changing and the steps you can take now to prepare. Each webinar lasts just 15 minutes and is led by a partner or managing associate from our employment team. Please do sign up here. By registering, you’ll be signed up to all six sessions. You can join as many or as few as you like.
Download our ERA 2025 guide for key action points
Get practical guidance on the Employment Rights Act 2025, including key changes, timelines and what your business should be doing now to prepare and manage risk.
