New regulations have been published to bring into force parts of the Employment Rights Act 2025 (ERA 2025) on 6 April 2026. In this insight, we summarise the seven key changes to employment rights and what this means for employers. 

1. Statutory sick pay (SSP) More workers will qualify for SSP than before. 

SSP will now be payable to eligible workers regardless of their earnings (due to the removal of the lower earnings threshold) from the first full day of sickness absence (not the fourth). A new weekly rate of SSP is also payable (the lower of 80% of average weekly earnings or the flat weekly rate of £123.25). Where a worker’s sickness absence began before 6 April 2026, transitional rules apply – see Sickness absences that start before and end on or after 6 April 2026 - GOV.UK. 

A recent ACAS survey on the ERA 2025 revealed that both employers and workers consider that paying sick pay from the first day of illness will have the biggest impact on them (43% of employers and 36% of workers). It will certainly be a significant change for employers who don’t provide enhanced contractual sick pay and/or who rely on bank or zero hours arrangements to fill shifts at short notice.

2. Parental rights 

Eligible employees will have the following statutory leave entitlements from the first day of their employment: 

• paternity leave (continuous service requirements removed but workers still have to be employed for 26 weeks’ before being entitled to paternity pay) 
• up to 18 weeks of unpaid parental leave (continuous service requirements removed) 
• up to at least two weeks of unpaid parental bereavement leave for employees who suffer pregnancy loss at or before 24 weeks (new right) 
• up to 52 weeks of unpaid bereaved partner's paternity leave (new right in addition to those in the ERA 2025) These updated entitlements are expected to increase the take-up of statutory parental leave. 

3. Collective redundancy 

The maximum protective award that can be ordered by an Employment Tribunal to each employee for their employer’s failure to collectively consult on redundancies will be doubled from up to 90 days pay to up to 180 days pay. This change will significantly increase risks and costs for employers that do not comply with their collective consultation obligations. 

4. Record keeping – paid holiday 

ERA 2025 amends the Working Time Regulations 1998 (WTR) to require employers to keep records for a period of six years (in any format they “reasonably thinks fit”) to demonstrate that workers have received their holiday pay and annual leave entitlements. Prior to the commencement regulations being published on 16 March 2026, there had been no indication of when this was going to come into force. 

Any failure to keep sufficient records could result in enforcement action by the Fair Work Agency and/or criminal charges for the most serious breaches (note: the Agency will be established on 7 April 2026 to uphold workers’ rights and support businesses with compliance, but it has not yet been granted enforcement powers for holiday pay rights and it is not known when this will happen). 

5. Whistleblowing 

Reports of sexual harassment will be protected whistleblowing disclosures. This means that workers who raise concerns about sexual harassment will (1) be protected from detriment or dismissal because they have ‘blown the whistle’, and (2) any agreements that attempt to prohibit the reporting of sexual harassment – for example, clauses in settlement agreements – will be unenforceable. 

6. Voluntary equality action plans 

Employers with 250 or more employees are being encouraged to voluntarily publish the steps they are taking to reduce their gender pay gap and support employees experiencing menopause before this becomes mandatory in April 2027. 

7. Simplification of the trade union recognition process 

The changes include: 

• ⁠a simple majority being required in recognition ballots (removing the previous 40% support threshold) 
• removal of the likely majority test when a union submits a recognition application 
• preventing recognition of a non-independent union, in response to a request for voluntary recognition from an independent union, from blocking the independent union’s subsequent recognition application. 
  

What to take away 

The ERA 2025’s transformation of the employment law landscape began in February 2026 with a number of changes relating to industrial action rules and protections for those participating in it. It continues at a pace. 

In respect of the 6 April 2026 reforms set out above, employers should ensure that their existing policies, procedures and contracts are compliant and that staff are aware of the changes. 

The implementation of the ERA 2025 will continue to keep employers and their legal and HR teams very busy, with ongoing consultations on proposed reforms and more regulations to be laid to bring changes into force throughout 2026 and into 2027. Further information and guidance (on the 6 April 2026 changes and those still to come) is available from the government here – New employment rights: Guidance for businesses and workers and Make Work Pay - GOV.UK (both regularly updated). 

How Capsticks can help 

Capsticks has significant experience of supporting employers to navigate changes in employment law and policy – from reviewing their current policies, contracts, practices and implementing change, to delivering training to employees at all levels. We also deal with any complaints or specific issues that may arise in individual cases by conducting investigations, supporting decision makers and HR, and defending any employment tribunal claims. 

For further information on how we can assist your organisation to be ERA 2025 ready, please contact Alessandra Gettins, Nicola Butterworth or Paul McFarlane.