The UK’s Employment Rights Bill (ERB), now enacted as the Employment Rights Act 2025, introduces one of the most significant overhauls of employment protections in over a decade. While the Act will be phased in over two years, several major reforms take effect from April 2026, reshaping statutory entitlements, trade union access, and collective redundancy protections. 

For global employers with UK operations, understanding these changes is essential to ensure compliance and maintain strong employee relations. For a detailed overview of the broader impacts of the Employment Rights Bill on payroll and global mobility, see our Employment Rights Bill: Key Impacts for UK Payroll & Global Mobility article. 

UK Employment Rights Lnscp

Strengthened Trade Union Access 

The ERB expands the rights of trade unions to access workplaces and engage with employees. From early 2026, new rules enhance protections for workers involved in industrial action and strengthen the ability of unions to communicate with staff. 

Employers should expect greater union visibility, more structured engagement processes, and increased scrutiny of employer responses to industrial action. HR teams will need to review existing union-related policies and ensure managers are trained on the updated legal framework. 

Day-One Entitlement to Statutory Sick Pay (SSP) 

 

A major reform arriving in April 2026 is the introduction of day-one eligibility for Statutory Sick Pay. SSP will become payable from the first day of sickness absence, removing the previous waiting period. 

This change requires payroll teams to adjust SSP calculations and update absence management systems. Employers may also see an increase in short-term absence costs. The reform aims to support worker wellbeing and reduce presenteeism, but it introduces new financial and administrative responsibilities for employers. 

Day-One Rights for Parental and Paternity Leave 

From April 2026, parental and paternity leave become day-one statutory entitlements. Employees will no longer need to meet a qualifying period to access these rights. 

Additional updates include the ability to give notice and provide evidence for family leave ahead of the April implementation date. In bereavement cases, paternity leave becomes a day-one right even earlier, from February 2026. 

Employers should update family-leave policies, onboarding materials, and HR systems to reflect these expanded entitlements. 

Enhanced Protections in Collective Redundancy Situations 

The ERB significantly strengthens protections for employees affected by collective redundancies. From April 2026, the maximum protective award for failure to properly consult will increase to 180 days’ pay, doubling the previous limit. 

This change is designed to encourage earlier and more meaningful consultation, increase employer accountability, and provide stronger financial protection for affected employees. Employers planning restructures or workforce reductions must ensure full compliance with consultation obligations to avoid substantial penalties. 

“April sees the first set of the new Employment Rights provisions coming into force. If you’re in HR, now’s the time to get clear on what’s changing.”
Claire Tocher, People & Culture Director

“April sees the first set of the new Employment Rights provisions we’ve all been talking about finally coming into force. If you’re in HR or responsible for people management, now’s the time to get clear on what’s actually changing—and what it means in practice for your organisation.” Claire Tocher, People & Culture Director 

What Employers Should Do Now 

With these reforms approaching, employers should begin preparing well ahead of April. Key actions include: 

  • Policy and Contract Updates: Review and revise sickness absence, family leave, and redundancy policies. Update employment contracts to reflect day-one entitlements
  • Payroll and HR System Adjustments: Reconfigure SSP triggers and calculations. Ensure HRIS platforms can manage new leave entitlements and track compliance
  • Manager and HR Training: Provide training on new trade union access rules and updated consultation requirements
  • Workforce Planning: Consider the financial and operational impact of day-one entitlements and enhanced redundancy protections

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