A comprehensive overhaul of sick pay regulations is scheduled to be implemented across England starting in April 2026, introducing substantial changes that will affect every worker in the country. The modifications, which form part of amendments to the Employment Rights Act, are designed to enhance financial protection for lower-paid employees during illness and help reduce the transmission of infections within workplace environments.
Key Changes to Statutory Sick Pay
From April 6, 2026, two major alterations will come into force. Firstly, the Lower Earnings Limit, which previously excluded some workers from eligibility, will be completely abolished. Secondly, the mandatory three-day waiting period before sick pay can be claimed will be eliminated. This means Statutory Sick Pay will become accessible to all qualifying employees from the very first day of absence, regardless of their earnings level.
New Calculation Method for Sick Pay
The rate of Statutory Sick Pay will now be calculated as 80 percent of an employee's average weekly earnings, with a maximum cap set at the flat weekly rate of £123.25. Employers will be required to pay whichever amount is lower between these two calculations, ensuring a balanced approach that considers both employee needs and business sustainability.
Research and Implementation Insights
Recent research conducted by Acas, the independent conciliation service, has revealed significant concerns among both employers and workers regarding these forthcoming changes. The study examined various aspects of the Employment Rights Act amendments and found that the sick pay modifications represent the most impactful change for both groups.
According to the survey data, 43 percent of employers identified the elimination of the waiting period as having the most substantial effect on their operations. Similarly, 36 percent of workers selected this change as their primary concern. The second most significant alteration involves protection from unfair dismissal, which will now apply after six months of employment rather than the previous two-year requirement.
Additional Employment Rights Changes
The Employment Rights Act amendments encompass several other important modifications. Employers expressed particular concern about new paternity leave rights, ranking them as their third greatest worry. Workers, meanwhile, highlighted fresh provisions regarding flexible working arrangements as a significant area of interest and potential impact.
Expert Commentary and Support
Niall Mackenzie, Chief Executive of Acas, emphasized the importance of these changes, stating: "The Employment Rights Act represents a major shake-up in employment law that will impact businesses and workers across the country. It's crucial that both employers and employees understand the new rules thoroughly."
Mackenzie further noted that Acas will play a vital role in supporting both parties during this transition period: "Acas remains best placed as independent experts helping everyone at work throughout this period of change. We will be working closely with employers, workers, and their representatives on implementing the Employment Rights Act, while updating our advice and training materials accordingly."
Broader Implications and Timing
These regulatory changes coincide with the beginning of the new financial year in April 2026, creating a clear implementation timeline for businesses and workers alike. The Department for Business and Trade has emphasized that the reforms aim to strike a balance between providing enhanced worker protections and maintaining reasonable expectations for employers.
The elimination of both the earnings threshold and waiting period represents a fundamental shift in how sick pay operates in England, potentially affecting millions of workers and thousands of businesses. As the implementation date approaches, both Acas and government agencies are expected to provide additional guidance and support to ensure a smooth transition to the new system.
