The Employment Rights Act 2025 introduces a phased programme of reform, but April 2026 is the point at which HR teams begin to feel the operational impact most directly.
While later changes, including reforms to unfair dismissal qualifying service, have attracted political attention, the April 2026 measures reshape how absence, enforcement, consultation, leave and employee relations risk need to be managed on a day-to-day basis.
For HR professionals, these changes are less about learning new concepts and more about tightening execution. The reforms widen statutory coverage, accelerate enforcement and increase financial exposure where processes are inconsistently applied or poorly documented. April 2026 is therefore a practical deadline for reviewing how policies operate in reality, not just how they read.
Statutory Sick Pay – operational implications for HR
From 6 April 2026, Statutory Sick Pay will apply more widely than under the current framework. The lower earnings limit and the three waiting days will both be removed. Workers will become eligible for SSP from the first day of sickness absence, subject to the statutory sickness and entitlement rules.
SSP will be payable at the lower of 80% of a worker’s usual earnings or the statutory SSP flat rate. Based on current projections for the 2026–27 tax year, the SSP rate is expected to be £123.25 per week, with the lower earnings limit expected to be £129 per week, although these figures remain subject to annual uprating.
For HR teams, the most significant shift is the removal of waiting days. Short-term sickness absences that previously carried no immediate cost will now trigger payment from day one. This increases the importance of accurate absence recording, consistent application of return-to-work processes and early identification of emerging patterns.
Transitional cases and pay calculations
Transitional arrangements will apply where sickness absence spans the implementation date. Workers serving waiting days on 6 April 2026 will become eligible for SSP immediately, and workers previously excluded due to low earnings will also become eligible from that date.
Where a worker is already receiving SSP and would otherwise see a reduction under the new 80% calculation, transitional protection applies until the worker returns to work, exhausts their entitlement or their employment ends. Average weekly earnings for the 80% calculation will be based on an eight-week reference period, with linked absences relying on the original reference earnings.
Fair Work Agency – increased scrutiny and enforcement
From April 2026, enforcement of statutory employment rights will be consolidated under a new Fair Work Agency. The agency will bring together enforcement functions currently exercised by bodies such as HMRC and the Gangmasters and Labour Abuse Authority.
The Fair Work Agency will be able to enforce specified statutory employment rights within its remit, including recovering underpayments directly from employers. It will also be able to bring Employment Tribunal claims on behalf of workers and provide legal support in cases that have already been issued.
For HR teams, this represents a shift away from a complaint-led enforcement environment. Errors that might previously have remained internal or unresolved due to low individual appetite for litigation are more likely to be identified and pursued. Record keeping, audit trails and timely correction of payroll or entitlement issues become more important in this context.
Collective consultation – higher exposure for process failures
The legal triggers for collective consultation are unchanged, but the financial consequences of getting the process wrong will increase significantly. In collective redundancy situations involving 20 or more proposed dismissals, including dismissals connected to contractual changes, the maximum protective award will rise from 90 days’ pay to 180 days’ pay.
For HR professionals involved in workforce change programmes, this change increases the risk attached to compressed timelines, unclear communication strategies and incomplete consultation records. Early HR involvement in planning, rather than late-stage process management, becomes harder to avoid.
Paternity and parental leave – immediate eligibility
From April 2026, qualifying service requirements for paternity leave and unpaid parental leave will be removed. Both forms of leave will become day-one statutory entitlements.
Notice requirements are not changing, and employees will still be required to give the statutory notice to take leave. The practical challenge for HR lies in workforce planning and manager awareness. Leave entitlements will apply to new starters from the outset, including those recruited into operationally sensitive roles or during peak periods.
Sexual harassment disclosures and whistleblowing risk
Disclosures relating to sexual harassment will be added to the list of qualifying disclosures under whistleblowing legislation. Reports that harassment has occurred, is occurring or is likely to occur can qualify, provided the individual reasonably believes the disclosure is true and made in the public interest.
The disclosure does not need to be substantiated at the point it is made. Any dismissal connected to such a disclosure will be automatically unfair, regardless of length of service, provided the statutory whistleblowing tests are met. Protection from detriment will also apply.
For HR teams, this increases the importance of correct issue classification at intake stage. Concerns that straddle grievance, harassment and whistleblowing frameworks need careful handling to avoid retaliation risk and procedural missteps.
Trade union recognition – earlier constraints on employer action
Once the relevant provisions are commenced, employers will be restricted from engaging in unfair practices as soon as the Central Arbitration Committee accepts an application for trade union recognition. At that point, the proposed bargaining unit will be fixed, even if recruitment continues.
Balloting procedures will also be modernised, with electronic balloting introduced and email becoming the preferred method for communicating ballot outcomes. HR teams should factor these changes into industrial relations planning and internal communications strategies.
What HR teams should be focusing on now
April 2026 places HR teams firmly at the centre of employment risk management. Preparation is less about drafting new policies and more about testing whether existing processes work under pressure.
Key priorities include reviewing sickness absence controls, strengthening consultation playbooks, revisiting onboarding and leave guidance and ensuring managers understand how whistleblowing protections apply in practice. Further reforms will follow into 2027, but April 2026 is the point at which the Employment Rights Act 2025 begins to reshape everyday HR decision-making.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.
