Major employment law reforms are set to transform the rights of 15 million workers across Britain, with key provisions of the Employment Rights Act coming into force from April 6, 2026. This overhaul represents the most significant upgrade to worker protections in a generation, introducing seven critical changes designed to enhance fairness and security in the workplace.
Day One Sick Pay: A Landmark Change
The most impactful reform is the introduction of statutory sick pay (SSP) as a 'day one' right. Previously, workers faced a three-day unpaid waiting period and had to meet an earnings threshold, which excluded approximately 1.3 million of the lowest-paid employees. From April 2026, SSP will be available from the first day of absence, eliminating these barriers and providing immediate financial support during illness.
This change is particularly vital for individuals with unpredictable health conditions or those in precarious employment, as it reduces the economic strain associated with taking time off sick. The abolition of the lower earnings limit means that part-time workers, those on low wages, and individuals with irregular hours will now qualify for SSP, ensuring broader inclusivity.
Fairer Calculation and Additional Reforms
Instead of a flat weekly amount, SSP will now be calculated as a percentage of an employee's usual income. This adjustment ensures that payments more closely align with regular earnings, creating a fairer system that better supports lower-paid workers. Beyond sick pay, other crucial changes include immediate rights to parental and bereavement leave, a ban on exploitative fire and rehire practices, and stronger protections against unfair dismissal after just six months of employment, down from the previous two-year requirement.
These reforms aim to modernise the UK's employment landscape, bringing it in line with other nations that offer more robust worker protections. The Trades Union Congress (TUC) has estimated that the changes could deliver a £10 billion boost to the economy by improving productivity and reducing workplace stress.
Industry and Government Reactions
Paul Nowak, General Secretary of the TUC, praised the reforms, stating: 'The Employment Rights Act will deliver vital common sense reforms for millions of people across the country, including sick pay for all workers from day one, banning exploitative zero hours contracts and protecting workers from harassment.' Prime Minister Keir Starmer echoed this sentiment, declaring: 'This Government is delivering the biggest upgrade to workers' rights in a generation. Our Employment Rights Bill is good for workers, good for businesses and good for the economy.'
Research conducted by Acas, the conciliation service, indicates that the sick pay changes will have the greatest impact, followed by the new unfair dismissal safeguards and enhanced paternity leave entitlements. This comprehensive approach addresses long-standing gaps in employment law, offering greater security and fairness for workers nationwide.
