Are you ready for the Employment Rights Act? | April 2026 wave explained

The Employment Rights Act 2025 (ERA) will introduce several transformative measures for employers, which are scheduled to take effect in waves over a two-year period.

These reforms will impact core statutory rights, parental leave, sickness entitlement, trade union processes, and collective redundancy obligations, and will require immediate, considered action from employers to review and update policies, contracts, and HR processes.

The first major wave will hit in April 2026, and here our employment law experts Jenny Hawrot and Achante Anson explain what’s set to come.

Statutory Sick Pay reform

From 6 April 2026, Statutory Sick Pay (SSP) will become payable from day one of sickness absence, removing the current three‑day waiting period. In addition, the lower earnings limit will be abolished, enabling far more workers, particularly those in lower‑paid roles to qualify for SSP.

This change will have cost and administrative implications for employers, requiring updates to payroll systems, sickness absence policies, and budgeting forecasts.

Day‑one rights for parental and paternity leave

Also from 6 April 2026, paternity leave and unpaid parental leave will become day‑one rights, removing the existing 26‑week (paternity) and one‑year (parental) qualifying periods. These new entitlements will apply to all babies born, or adoption placements beginning, on or after that date.

Employers should also note that, under transitional arrangements, eligible employees may submit notice as early as 18 February 2026.

Enhanced collective redundancy protections

Spring 2026 will also see the maximum protective award for failures in collective redundancy consultation double from 90 days to 180 days’ pay per affected employee. This significantly increases the financial risk for employers that fall short of their statutory consultation duties.

Trade union and industrial action reforms

The ERA introduces extensive, phased reforms to trade union law. Several of these changes took effect in February 2026, with further measures scheduled across this year.

Key developments include:

• Simplified statutory recognition processes, making it easier for unions to obtain bargaining rights.
• Reversal of several previous legislative restrictions, including those relating to strike procedures and picketing formalities.
• Strengthened protections for workers involved in industrial action, increasing the legal risks associated with disciplinary action or dismissal in such contexts.
• Easier pathways for union recognition, potentially increasing the likelihood of union organising in workplaces that have historically been non‑unionised.

What can businesses do to prepare for the first wave of Employment Rights Act measures?

The Employment Rights Act 2025 introduces sweeping reforms designed to modernise worker protections, expand statutory entitlements, and strengthen collective rights.

Employers should get a head of the curve by ensuring documentation is updated, including employment contracts and policies, as well as refreshing systems and practices well ahead of the implementation dates.

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