Workplace law reforms bring fresh risks and responsibilities

The Employment Rights Act 2025 introduces some of the most significant employment law reforms in recent years. Many changes took effect in April 2026, with further developments expected through 2026 and 2027. Employers should take this opportunity to review policies, processes and manager guidance to ensure compliance.

Family-Friendly Rights

Unpaid parental leave and statutory paternity leave are now available from day one of employment, removing previous service requirements. These changes apply to babies due on or after 5 April 2026 and adoptions from 6 April 2026.

A transitional period (6 April to 25 July 2026) allows newly eligible employees to give 28 days’ notice; after this, the standard 15-week notice requirement resumes.

What employers should do:
• Update policies, forms and HR systems
• Adjust notice procedures during the transitional period
• Brief managers to ensure consistent understanding of eligibility

Statutory Sick Pay (SSP)

SSP is now payable from the first day of absence, removing the three-day waiting
period. The lower earnings limit has also been abolished, expanding eligibility. Payments are
set at 80 per cent of normal weekly earnings or £123.25, whichever is lower.
What employers should do:
• Review payroll and absence management processes
• Ensure policies clearly define triggers and procedures
• Support managers in handling short-term and repeat absences fairly

Whistleblowing

Sexual harassment disclosures are now classified as protected disclosures.

Employees have day-one protection from detriment, and dismissals linked to such disclosures are automatically unfair.

Compensation remains uncapped, increasing employer risk where concerns are mishandled.
What employers should do:
• Update whistleblowing and anti-harassment policies
• Reinforce training on recognising and escalating concerns
• Ensure managers handle disclosures sensitively and lawfully

Collective Redundancy

The maximum protective award for failure to consult has doubled from 90 to 180 days’ pay per affected employee. Consultation timelines remain unchanged at 30 days for 20 or more redundancies; 45 days for 100 or more, but the financial risk of non-compliance has increased significantly.

What employers should do:
• Ensure clear understanding of consultation requirements
• Seek legal advice early where needed
• Review internal restructuring and redundancy processes

Fair Work Agency (FWA)

The new Fair Work Agency will take a more proactive enforcement role across areas such as holiday pay, SSP, minimum wage compliance, agency worker rules and recordkeeping. It has powers to request records, investigate and bring claims on behalf of workers.

What employers should do:
• Review holiday pay calculations, including overtime
• Ensure records are accurate, complete and accessible
• Identify and address compliance gaps early

Trade Union Recognition

The removal of the 40 per cent support threshold makes statutory trade union recognition easier to achieve. This increases the importance of strong employee engagement and workplace communication.
What employers should do:
• Strengthen communication and engagement strategies
• Focus on workplace culture and conditions
• Monitor early signs of employee dissatisfaction

These reforms expand employee rights and increase enforcement risks. Employers should act now to update policies, train managers and ensure compliance, reducing exposure and supporting effective workplace practices.