The Employment Rights Act 2025 received Royal Assent on December 18, 2025 and the law will be implemented gradually until 2027.
However, there are two specific implementation dates to note this year: April 6, 2026 and October 1, 2026.
April 2026
Paternity leave and parental leave
From April 6th, you are entitled to paternity leave and parental leave from day one. The current requirement of 26 weeks or one year of service will be removed. There is also the option of taking paternity leave following shared parental leave.
From the same date there is also a new entitlement to paternity leave for the survivor of up to 52 weeks. This applies to fathers and partners who lose their partner before their child’s first birthday. It solves the difficulties of surviving partners who do not have the appropriate length of service to take time off and are dependent on special voluntary leave from their employer.
Statutory sick pay
From April 6, employees will receive SSP from the first day of their sickness absence, eliminating the current three-day waiting period. The lower earnings limit will also be abolished and the SSP will be £123.25 per week or 80% of normal weekly earnings, whichever is lower.
Whistleblowing
The definition of a “qualified disclosure” for whistleblowing purposes will expand to include sexual harassment disclosures starting April 6.
Mass dismissal protection bonus
From April 6th, the maximum protective penalty for failure to provide collective consultation will double from 90 to 180 days. This significant increase is intended to prevent employers from “pricing in” the costs of ignoring collective consultation obligations.
Fair Work Agency (FWA)
The FWA is founded on April 6th. It will be able to carry out workplace inspections, impose penalties for underpayment of wages and represent workers in court proceedings. We do not have a timeline for the FWA’s enforcement powers; We only have the start date.
Other developments
It is worth mentioning that there will be extensive changes in the trade union and industrial dispute area over the course of 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 employees during menopause. The plans will be mandatory in 2027.
October 2026
Harassment and sexual harassment
Currently, employers must take “reasonable measures” to prevent sexual harassment in the course of employment. From October 1st, the obligation to take “all reasonable steps” will be tightened.
There will also be protection against third-party harassment, covering any type of harassment and not just sexual harassment as before. Third parties include customers, clients and the public. Employers will be liable unless they can demonstrate that they have taken all reasonable steps to prevent harassment by third parties.
Fired and rehired
From October 1st, the dismissal of an employee for rejecting certain contractual changes (“limited changes”) is automatically unfair, unless the employer is experiencing financial difficulties. The restricted variants include changes to pay, pensions, working hours, shift schedules or vacation entitlements.
It also constitutes an automatic unfair dismissal if an employee is replaced by someone who is not a direct employee (e.g. a temporary worker) and takes on the same or substantially the same role as the dismissed employee.
Labor court deadlines
From October 1, the deadline for filing a claim with the Labor Court for all claims will be extended to six months, doubling the current deadline of three months. There are concerns that this could lead to an increase in employment tribunal cases, but it is also likely to provide more time for early mediation.
Other developments
As well as changes to union and industrial action, changes scheduled to be implemented on October 1 will prevent the creation of a “two-tier workforce” under outsourced contracts. As of the same date, employers must consult with employees and union representatives about their written tip policies and review them at least every three years.
How can employers prepare for implementation?
- Review and update family and medical leave policies and communicate with employees about the reasons for the changes and when they will take effect.
Please remember that if dismissals are imminent, there is a risk of a significant increase in the protective penalty for failing to provide collective consultation.
- Prepare for higher SSP costs.
- Review and update whistleblowing policies and reporting mechanisms to cover sexual harassment disclosures and provide clear guidance to staff.
- Review and update harassment and sexual harassment policies and review all sexual harassment risk assessments to reflect the expanded duty.
- Prepare for greater scrutiny of employment practices as the FWA’s scope becomes clearer.
- Consider whether additional training is required for employees and managers.
This year, more than ever, employers need to stay informed and prepare for the many upcoming employment law changes.
