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Seven key measures in the Employment Rights Act come into force next month with sick pay changes having the biggest impact on workers and employers
Major changes are set to be implemented for all workers from April 6 – and the government has stated that approximately fifteen million people, half of all workers, are expected to benefit.
Seven crucial measures in the Employment Rights Act will come into effect next month. One significant new change will affect anyone who takes a day off due to illness. Other updates to employment law include ‘day one’ rights for parental and bereavement leave, and the termination of unethical fire and rehire practices.
Officials claim these reforms will put an end to insecure work, unfair pay and poor working conditions, putting more money in people’s pockets and enhancing living standards.
They include providing sick pay for up to 1.3 million of the lowest earners. For money-saving tips, sign up to our Money newsletter here
The Trade Union Congress (TUC) has stated that the assessment outlines how the new Act will deliver substantial benefits for the country, including improved health, wellbeing and job satisfaction, and reduced workplace disputes, generating increases in economic output and employment.
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.”
Research has suggested that new entitlements on sick pay will have the most significant impact on both workers and employers. A study commissioned by the conciliation service Acas, examining changes within the Employment Rights Act, found that fresh protections against unfair dismissals were also identified as having a substantial effect.
Employers ranked new paternity leave entitlements as their third most significant concern, whilst workers highlighted the recent changes to flexible working arrangements.
Acas indicated the findings would enable it to focus support for workers and employers where it was most needed. 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.”
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 February 18.
- 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.
Prime Minister Keir Starmer has said: “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.
“It’s a core part of our agenda to make people better off and will make a real difference to people’s lives.”
The New Six-Month Qualifying Period
Employees currently need to work for two years before they can claim ordinary unfair dismissal. This has long afforded employers a considerable window to evaluate new employees and tackle any performance or conduct concerns without the risk of unfair dismissal claims.
However, from January 1, 2027, employees will gain unfair dismissal protection after six months in post. The government’s initial proposal was to introduce protection from day one of employment, but this was reduced before the Bill became law.
Sick pay
From April 6, 2026, the Employment Rights Act 2025 will transform Statutory Sick Pay (SSP) into a “day one” right, removing the three-day waiting period and the lower earnings limit. SSP will be paid from the first day of sickness and be available to all workers regardless of income.
SSP is a statutory entitlement that provides income to employees who are off work due to illness. As it stands, SSP:
- Is paid from the 4th day of sickness (with the first 3 “waiting days” being unpaid).
- Pays a fixed weekly rate of £109.40 (as of 2025), regardless of your usual income.
- Requires employees to earn at least £123 a week (meaning employees earning less than this don’t qualify for SSP).
What’s Changing from April, 2026?
The forthcoming changes proposed under the Employment Rights Bill will make SSP more accessible, flexible, and fair. Here’s what you need to know:
SSP from Day 1
SSP will now be available from the first day of absence, eliminating the three unpaid waiting days. This change is vital for employees in reducing the financial burden during illness, particularly for those with unpredictable health conditions.
No Earnings Threshold
The lower earnings limit will be abolished, meaning those on low wages, part-time contracts, or with irregular hours, who previously didn’t qualify for SSP, will now be eligible.
Pay Based on Earnings
Instead of a flat weekly amount, SSP will be calculated as a percentage of your usual income. This means that employees will receive an amount more closely aligned with their regular earnings, which helps create a fairer system, especially for those who are lower paid.
