Major reforms impacting all employees have taken effect, with the government stating that approximately fifteen million people, representing half of the entire workforce, stand to gain. Seven crucial provisions within the Employment Rights Act are now legally enforceable and will affect anyone feeling under the weather before going into work.
Key Changes to Sick Pay
One notable new amendment will impact anybody who calls in sick. Further employment law changes include 'day one' entitlements for parental and bereavement leave, as well as an end to exploitative fire and rehire tactics. Ministers say the reforms will eradicate precarious employment, unjust remuneration and substandard working conditions, placing additional money in workers' pockets and improving living standards. These include broadening sick pay to up to 1.3 million of the lowest-paid workers.
In a recent parliamentary question, Labour's Dr Beccy Cooper asked Secretary of State for Work and Pensions, Pat McFadden: "What assessment they have made of the adequacy of Statutory Sick Pay in meeting essential living costs for low-income workers." In response, Dame Diana Johnson, Minister of State for the Department for Work and Pensions, emphasised the new legislation which is now operational.
Dame Diana Johnson's Statement
She stated: "Statutory Sick Pay (SSP) is designed to provide a minimum level of support and financial security for employees when they are unable to work due to sickness whilst also balancing the cost to employers. The government has made key changes to SSP, which came into force last month. Through the Employment Rights Act, we have removed the Lower Earnings Limit for SSP. Previously employees had to earn at least £125 per week to be eligible to receive SSP from their employer; the removal of the Lower Earnings Limit has meant this threshold no longer applies. This means up to 1.3 million more employees will be covered, supporting low-income workers and those who work for more than one employer. We have also removed the waiting period, so people can access sick pay from their first day of sickness absence. These changes will mean that employees receive around an extra £400 million a year in sick pay."
Full List of Changes from April 2026
- Statutory Sick Pay: More employees will qualify, with no earnings threshold and no three-day waiting period.
- Day-one family leave: Employees entitled to Paternity Leave and Unpaid Parental Leave from the first day in a new job. Notice can be given from 18 February.
- Bereaved Partner's Paternity Leave: New right to time off following the death of a child's mother or primary adopter.
- Collective redundancy protections: Increase to the protective award for non-compliance.
- Whistleblowing protections: Stronger protections for workers who report sexual harassment.
- Simpler enforcement through the Fair Work Agency: A new body to uphold workers' rights and support businesses with compliance.
- Action plans: Employers with 250 or more employees will be encouraged to publish the steps they are taking to reduce their gender pay gap and support employees experiencing menopause.
New Six-Month Qualifying Period
Employees currently need to work for two years before they can claim ordinary unfair dismissal. This has long provided employers with a substantial window to assess new employees and address any performance or conduct issues without the risk of unfair dismissal claims. However, from 1 January 2027, employees will gain unfair dismissal protection after six months in post. The government's original proposal was to introduce protection from day one of employment, but this was scaled back before the Bill became law.
Reactions and Impact
The TUC has confirmed that the landmark legislation will bring considerable advantages for the nation, encompassing better health, wellbeing and job satisfaction, along with a reduction in workplace disputes, ultimately resulting in greater economic productivity and higher employment rates. TUC general secretary Paul Nowak said: "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. Too often in this debate the facts are ignored, but stronger rights at work are good for workers and employers – driving up labour market participation, improving health, raising productivity and boosting demand. The Employment Rights Act will deliver an estimated £10 billion boost to the economy – gains that far outstrip any costs. Britain will now be brought into line with other countries where workers already have better protections and, crucially, the legislation will give working people the higher living standards and secure incomes that are needed to build a decent life. Good employers will also welcome these changes: the Act protects them from competitors whose business models are built on low-paid, insecure employment."
Fresh sick pay provisions are anticipated to carry the most significant implications for both employees and businesses, research suggests. Fred Jerrome, Head of Workplace Policy at Acas (Advisory, Conciliation and Arbitration Service) cautioned that employers could be hit with considerable penalties. He stated: "6 April marked more than the new tax year – it saw the roll out of the first major employment law changes in the Employment Rights Act 2025. But bringing new laws into force is just the first step. At Acas, we're working on how these reforms can be successful in practice. As well as training managers and communicating with staff about individual rights, Acas encourages employers to take a proactive approach to dealings with trade unions. Our collective conciliation service is on hand to assist with emerging disputes. It will be employers and unions who are ready to work well together who see the most benefits from the changes in April and beyond."
Research commissioned by Acas examining reforms to the Employment Rights Act revealed that new protections against unfair dismissal were also recognised as significantly impactful. Employers identified new paternity leave entitlements as their third most pressing concern, while workers attached greater significance to the revised flexible working arrangements. Acas indicated the findings would enable it to direct support towards workers and employers in areas of greatest need. Niall Mackenzie, Acas chief executive, said: "The Employment Rights Act is a major shake-up in employment law and will impact businesses and workers across the country. It's crucial that both employers and employees get to grips with the new rules, and Acas remains best placed as independent experts helping everyone at work throughout this period of change. Acas will be working with employers, workers and their representatives on the implementation of the Employment Rights Act and we will be updating our advice and training."
