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UK Employment Rights Act 2025: Implementation checklist for April 2026 reforms

UK Employment Rights Act 2025: Implementation checklist for April 2026 reforms

A busy April is in store, with a wave of changes under the Employment Rights Act 2025 alongside the usual statutory rate increases. Our checklist highlights what employers should be doing now.

April 2026 will bring much more than the usual statutory rate and National Minimum Wage increases. The next wave of wholesale reforms under the Employment Rights Act 2025 is coming into force, spanning family-friendly rights, sick pay, whistleblowing, enhanced penalties for failing to collectively consult and trade union recognition. 

While some changes only require straightforward policy updates, others carry significantly increased financial risk—making now the time for employers to address and implement the reforms.

Here’s what’s changing and the actions you should take before then.

From April 6, 2026

Family leave: “Day one” rights

Parental leave and paternity leave will both become “day one” rights. That means the existing qualifying periods for eligibility will no longer apply. 

Employees will also be able to take paternity leave after a period of shared parental leave. 

Bereaved partner’s paternity leave also comes into force, giving surviving partners up to 52 weeks’ unpaid leave where the primary carer dies within a year of birth or adoption. This will also be a “day one” right.

  • Action: Review your family leave policies and update eligibility and timing of leave requirements.
  • Action: Ensure your bereavement leave policy covers bereaved partner’s paternity leave.

Statutory sick pay: No more waiting

The three-day waiting period for statutory sick pay (SSP) is being removed, which means SSP will now be payable from day one of absence. 

The earnings threshold is also disappearing, so SSP will be available to all workers regardless of earnings (at the flat weekly rate or 80% of normal weekly earnings, whichever is lower). 

  • Action: Update your sick pay policies and any guidance notes.
  • Action: Brief payroll and ensure your payroll software can handle the changes.

Whistleblowing: Sexual harassment now expressly protected

Sexual harassment will become a standalone category of disclosure that may be protected under whistleblowing legislation. 

Whistleblowers reporting sexual harassment would generally have been protected anyway, but this formalises that position and removes ambiguity.

  • Action: Review and update your whistleblowing policy to reference this technical change.
  • Action: Incorporate this change into your internal dignity at work and whistleblowing. training materials

Collective redundancy consultation: Increased financial exposure

The maximum protective award for breaching collective redundancy consultation obligations is doubling from 90 days’ to 180 days’ uncapped pay per employee. This will apply for dismissals taking effect on or after April 6, 2026.

And remember, if you also unreasonably fail to follow the Dismissal and Re-engagement Code of Practice, tribunals can uplift that by a further 25%, aside from the increased unfair dismissal risk exposure for an unfair redundancy process.

  • Action: Ensure collective consultation processes are robust and that decision-makers understand the increased financial exposure.
  • Action: If restructuring is on the horizon, factor in the higher financial risk profile.

Read our recent blog on UK union recognition getting easier and consult our full checklist.

Trade union recognition: Relaxed thresholds

It’s about to get easier for trade unions to gain statutory recognition. 

The requirement to show that a majority of the bargaining unit is likely to support recognition will be removed, and a simple majority supporting recognition in the final ballot will now suffice (and the current 40% turnout threshold will no longer apply). We are also waiting for regulations to confirm the percentage membership threshold for a Central Arbitration Committee application; this is currently 10% of workers in the proposed bargaining unit and may be reduced to between 2% and 10%. 

  • Action: Be aware of the increased likelihood of recognition requests.
  • Action: Consider proactive engagement with your workforce and existing representative bodies to understand and address any underlying employee relations concerns.

Read our recent blog on UK union recognition getting easier and consult our full checklist

Access other useful resources on trade union and collective reforms on our UK industrial relations hub.

Equality: Action plans and menopause guidance

While mandatory equality action plans don’t kick in until 2027, employers can start publishing them on a voluntary basis from April 6, 2026. 

Government menopause guidance will also be introduced on April 6, 2026.

  • Action: If you're subject to gender pay gap reporting and want to get ahead, consider preparing a voluntary equality action plan now.
  • Action: If you don’t currently have a menopause policy in place, now is the time to think about introducing one.

Read our recent blog on UK equality action plans for more information on equality action plans and other pay gap reporting reforms on the horizon.

New holiday record-keeping obligations

From April 6, 2026, employers will be required to create, keep and maintain adequate records demonstrating compliance with holiday leave and pay rules. These must be retained for six years. 

Failure to comply will be a criminal offence punishable by a fine. 

  • Action: Audit your current systems to ensure they are fit for purpose and record the relevant information.
  • Action: Update data retention policies to ensure the records are maintained for the six-year retention period.

From April 7, 2026

Enforcement: Fair Work Agency

The new Fair Work Agency will be created to consolidate the enforcement of certain labour market legislation, including national minimum wage, employment agency and modern slavery obligations, with holiday pay and statutory sick pay enforcement to follow.

While it may take time for the FWA to be fully up and running, commencement regulations will bring wide enforcement powers into force for relevant legislation from April 7, 2026. Together with the appointment of the FWA’s Advisory Board members, this suggests some early operational capability.

  • Action: No policy updates are required for now, but with stronger and more streamlined enforcement expected, employers should review systems and processes to ensure compliance with current legal obligations and record-keeping requirements.
  • Action: The FWA will have “dawn-raid” style inspection powers. We don’t know yet how often these powers will be used in practice, but senior management should work with legal, compliance and finance teams to consider internal protocols for handling an FWA inspection.

 

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