April 2026 marks a significant shift in UK employment law with the introduction of several key updates under the Employment Rights Act 2025. HR professionals, business owners, and SMEs must understand these changes to ensure compliance, avoid penalties, and maintain a supportive workplace. From statutory sick pay reforms to new whistleblowing protections and the establishment of the Fair Work Agency, the changes are wide-ranging and impactful.
This guide outlines what businesses need to know and how to prepare.
Key Changes in Paternity and Parental Leave
From 6 April 2026, paternity leave and ordinary parental leave undergo significant reforms:
-
Day-one entitlement: Paternity leave and unpaid parental leave will become a right from the first day of employment, removing the current 26-week and one-year service requirements.
-
Shared parental leave flexibility: Restrictions on taking paternity leave after shared parental leave will be removed.
-
Bereaved partner’s paternity leave: Fathers or partners can take up to 52 weeks of unpaid leave if the mother or primary adopter dies, applicable within 52 weeks of birth, adoption placement, or entry to Great Britain for overseas adoptions.
Businesses should book training to ensure managers and employees understand these changes and how to handle leave requests appropriately.
Statutory Sick Pay (SSP) Changes
Significant reforms to statutory sick pay come into effect on 6 April 2026:
-
Immediate entitlement: SSP will be payable from the first day of sickness, instead of the fourth.
-
Removal of the Lower Earnings Limit (LEL): All eligible employees, regardless of earnings, will now have access to SSP.
-
Payment rate: SSP will be paid at 80% of normal weekly earnings or the flat rate, whichever is lower.
These updates improve employee protection and require businesses to review payroll systems and HR policies to ensure compliance.
Collective Consultation During Redundancy
The maximum protective award for failure to consult in collective redundancies will double from 90 days’ pay to 180 days’ pay. This emphasizes the importance of early consultation and documentation during redundancy processes.
HR teams should audit current redundancy policies to align with the new legislation.
Whistleblowing Protections
From 6 April 2026, workplace sexual harassment disclosures will be explicitly defined as a ‘qualifying disclosure’ under whistleblowing law. Employees making such disclosures will be protected from detriment and unfair dismissal.
Businesses should ensure employees are familiar with whistleblowing procedures and that teams are trained to handle these disclosures appropriately.
Trade Union Recognition
The process for trade union recognition will be simplified from 6 April 2026, with an updated Code of Practice expected in October 2026. Businesses should prepare by reviewing existing recognition agreements and ensuring internal policies support smooth engagement with trade unions.
Fair Work Agency (FWA)
A new enforcement body, the Fair Work Agency, will be established on 7 April 2026.
The FWA aims to:
-
Consolidate existing enforcement bodies.
-
Oversee employment rights including holiday pay, SSP, and other statutory entitlements.
-
Provide a single point of contact for workers seeking help.
Businesses must be aware of the FWA’s role and update compliance frameworks accordingly.
Gender Pay Gap and Menopause Action Plans
From 6 April 2026, employers with 250+ employees are encouraged to publish voluntary action plans addressing:
-
Gender pay gaps.
-
Menopause support in the workplace.
Although voluntary initially, these will become mandatory in 2027. Early action helps demonstrate commitment to equality and employee wellbeing.
Preparing Your Business for the Employment Rights Act 2025 Changes
To ensure compliance and smooth implementation, businesses should focus on five key areas:
-
Review Employment Contracts: Update contracts for maternity, parental leave, redundancy, and sick pay to reflect the new regulations.
-
Training and Awareness: Provide comprehensive training for managers and employees on new rights and responsibilities.
-
Compliance Checks: Audit HR systems, payroll, and policies to confirm they meet legislative requirements.
-
Whistleblower Protection: Educate employees about new protections for sexual harassment disclosures.
-
Menopause and Gender Pay Action Plans: Begin developing voluntary plans to stay ahead of upcoming mandatory requirements.
By proactively addressing these areas, businesses can mitigate risks, improve workplace satisfaction, and demonstrate compliance with the updated Employment Rights Act 2025.
How Park City Consulting Can Help
At Park City Consulting, we support employers through periods of significant legislative change with clear, practical advice. Our services include:
- HR consultancy and retained HR support
- Employment law reviews
- Policy reviews and compliance audits
- Redundancy and restructuring support
- Manager training
- Fully outsourced HR solutions
Contact us today to prepare for the Employment Rights Act Changes and ensure your organisation is compliant, confident, and ready for what comes next.