What employers need to know

The Employment Rights Act 2025 received royal assent on 18 December 2025, and the Act will be implemented on a phased basis until 2027.

However, there are two specific implementation dates to be aware of this year: April 6, 2026, and October 1, 2026.

April 2026

Paternity leave and parental leave

From April 6, the right to paternity leave and parental leave will be one day each. The present requirement of 26 weeks and one year of service respectively will be removed. It will also be possible to take paternity leave after shared parental leave.

Also, from the same date, the bereaved partner will also get a new right to paternity leave up to 52 weeks. It is for fathers and partners who lose their partner before their child's first birthday. This addresses the difficulties of bereaved partners, without relevant length of service, who have to rely on discretionary compassionate leave from their employer.

statutory sick pay

From April 6, employees will receive SSP from the first day of sickness absence, eliminating the existing three-day waiting period. The lower earnings limit will also be abolished, and SSP will be £123.25 per week or 80% of normal weekly earnings, whichever is lower.

whistleblowing

The definition of “eligible disclosure” for whistleblowing purposes will be expanded from April 6 to include disclosures about sexual harassment.

Collective Redundancy Protective Award

From April 6, the maximum protective award for failure in collective consultation will double from 90 days' pay to 180 days' pay. This significant increase is intended to prevent employers from “pricing out” the costs of ignoring collective consultation obligations.

Fair Work Agency (FWA)

FWA will be established on 6 April. It would be able to conduct workplace inspections, issue fines for underpayment of wages, and represent workers in legal proceedings. We have no time limits on the FWA's enforcement powers; We only have its launch date.

other developments

It is noteworthy that there will be changes in widespread trade union and industrial action throughout the year. Additionally, employers with 250 or more employees are expected to introduce voluntary equality action plans in April to promote gender equality, address the gender pay gap and support menopausal employees. The plans will become mandatory in 2027.

October 2026

Harassment and sexual harassment

Currently, employers must take “reasonable steps” to prevent sexual harassment during the course of employment. From October 1, the duty to take “all reasonable steps” will be strengthened.

There will also be protection from third party harassment, covering any harassment instead of just sexual harassment as at present. Third parties include customers, clients and members of the public. Employers will be liable unless they can show that they have taken all reasonable steps to prevent third party harassment.

fire and rehire

From 1 October, it will automatically be unfair to dismiss an employee for refusing certain contract variations (“restricted variations”), except where the employer is in financial difficulty. Prohibited changes include changes to pay, pensions, working hours, shift patterns or leave entitlements.

If an employee is replaced with someone who is not a direct employee (for example, an agency worker) and who will perform the same or substantially the same role as the dismissed employee, this will also be an automatic unfair dismissal.

employment tribunal time limit

From 1 October, the time limit for bringing an employment tribunal claim will increase to six months for all claims, doubling the current limit of three months. There are concerns that this could lead to an increase in employment tribunal cases, but it also arguably provides more time for speedy conciliation.

other developments

As well as changes to trade union and industrial action, the amendments set for implementation on October 1 will prevent the creation of a “two-tier workforce” under outsourced contracts. From the same date, employers must consult with workers and trade union representatives on their written TIPS policy and review it at least once every three years.

How can employers prepare for implementation?

• Review and update family-related and sickness absence policies, and communicate with employees about the reasons for changes and when they will take effect.

If there is a threat of redundancy, consider a significant increase in the protective award for failing to undertake collective consultation.

• Be prepared for higher SSP costs.
• Review and update whistleblowing policies and reporting mechanisms to cover sexual harassment disclosures and provide clear guidance for employees.
• Review and update harassment and sexual harassment policies, and review any sexual harassment risk assessments for extended duty.
• Be prepared for greater scrutiny of employment practices when the scope of the FWA becomes clear.
• Consider whether additional training is needed for employees and managers.

This year, more than ever, employers need to stay informed and prepared for the many employment law changes coming ahead.

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