Key reforms introduced under the Employment Rights Act 2025 will come into force in April 2026, including several ‘day one’ rights for employees, plus some additional important changes for employers to note.
This overview summarises the changes due to take effect in April 2026 and outlines some practical steps for employers preparing for implementation.
Our Employment Rights Act 2025 Hub is kept regularly updated, including our helpful ERA 2025 Table, setting out the key provisions in order of expected implementation.
- Statutory pay increases
Rates of NMW increase with effect from 1 April 2026 as follows:
| Current rate | From 1 April 2026 | |
| National Living Wage (21+) | £12.21 | £12.71 |
| 18-20 year old rate | £10.00 | £10.85 |
| 16-17 year old rate | £7.55 | £8.00 |
| Apprentice rate | £7.55 | £8.00 |
| Accommodation offset | £10.66 | £11.10 |
From 6 April 2026 (5 April for SMP), other statutory rates of pay also increase:
| Current rate | From 6 April 2026 (5 April for SMP) | |
| Statutory Sick Pay (SSP) | £118.75 | £123.25 |
| Statutory maternity pay and maternity allowance; statutory adoption, paternity, shared parental, neonatal care and parental bereavement pay | £187.18 | £194.32 |
| Lower earnings limit (threshold for qualifying for some statutory payments) | £125 (£30 for maternity allowance) | £129 (£30 for maternity allowance) |
- Day one SSP
From 6 April 2026, statutory sick pay (SSP) will be payable from day one of any period of sickness absence, and the lower earnings limit will be removed, meaning a wider category of employees will be eligible for SSP. SSP will be payable at either the flat weekly rate (increasing to £123.25 from 6 April 2026) or 80% of normal weekly earnings, whichever is lower. This means that the amount of SSP will reduce for some low earners.
For more information, see the Government Factsheet.
- Day one parental and paternity leave entitlements
From 6 April 2026, statutory (unpaid) parental leave becomes a day-one right for employees, with no minimum service requirement.
In respect of children born, or placed for adoption, on or after 6 April 2026, entitlement to take statutory paternity leave also becomes a day-one right. Note, the right to receive statutory paternity pay will still require a minimum service of 26 weeks by the 15th week before the expected week of childbirth.
The restriction on taking paternity leave immediately following a period of shared parental leave will be removed from the same date, giving new parents greater flexibility over the timing of their chosen periods of leave.
For more information, see the Government Factsheet.
A new statutory right to take bereaved partner’s paternity leave will also take effect from 6 April 2026. This new entitlement allows a bereaved parent to take up to 52 weeks of leave after a child’s birth or placement for adoption, where the child’s primary carer dies within that time. This is a day-one right with no minimum period of service.
Notice requirements for taking the leave depend on whether the leave starts within eight weeks of the bereavement, or more than eight weeks (when at least a week’s notice is required). There is currently no statutory entitlement for this leave to be paid, although employers may choose to make some or all of the leave paid in line with any enhanced maternity or shared parental leave pay.
- Collective redundancy protective award
An increase to the maximum protective award will take effect on 6 April 2026. This is a penalty awarded by a tribunal following an employer’s failure to collectively consult with employees in accordance with the statutory rules applicable when an employer proposes 20 or more redundancies. The maximum award will double, from 90 to 180 days’ pay, for dismissals taking effect on or after 6 April 2026.
For more information, see the Government Factsheet.
- Sexual harassment and whistleblowing protection
The definition of a qualifying disclosure for whistleblowing protections will change on 6 April 2026 to expressly include a disclosure that sexual harassment has occurred, is occurring or is likely to occur. This will expand and strengthen the protections available to those who make allegations of sexual harassment, regardless of whether the harassment was directed towards them personally or towards a colleague.
For more information, see the Government Factsheet.
- Trade union recognition
The process for securing statutory trade union recognition is due to be simplified from 6 April 2026, with regulations expected to replace the current minimum 10% union membership requirement with a minimum of between 2% and 10% union membership.
In addition, the current requirement for at least 40% of the total members of the bargaining unit to vote in support of compulsory recognition will be removed. Instead, only a simple majority of those who participate in the vote will be required to vote in favour of recognition.
For more information on all the trade union changes under the ERA 2025, see the Government Factsheet.
- Menopause guidance and equality action plans
New menopause guidance for employers is due to take effect from 6 April 2026, although note this has not yet been published.
In addition, large employers (250+ employees) are being asked to publish equality action plans on a voluntary basis from 6 April 2026. This is expected to become compulsory for large employers from spring 2027.
For more information on equality action plans, see our recent article and the Government Factsheet.
- Fair Work Agency
The new Fair Work Agency (FWA) is due to be established on 7 April 2026, although it is not expected that any of its enforcement powers will take effect until a later date. The FWA will consolidate existing enforcement bodies and will have powers to investigate workplace complaints, enforce statutory rights and issue penalties.
For more information, see the Government Factsheet.
What do employers need to do?
- Employers should review and update their contracts, sickness absence policies, whistleblowing, harassment and family leave policies to make sure they align with all the changes coming into effect from April.
- Payroll systems should be checked to ensure statutory pay increases and the revised SSP calculations can be correctly applied from April.
- Line managers and HR teams should be made aware of the changes and their impact on internal processes by providing appropriate training and guidance.
- The substantial increase to the protective award means that careful planning and implementation of large-scale restructuring and redundancy exercises are essential to minimise the risk of failing to adequately consult the workforce.
- Large employers may also wish to begin preparing for equality action plan reporting now, even while the requirement remains voluntary, to allow sufficient time for data gathering and stakeholder engagement.
For more advice on implementing these changes or other measures introduced under the ERA 2025 within your organisation, contact your usual Birketts adviser or email [email protected].
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at March 2026.