The Employment Rights Bill 2025: What We Know So Far — And the April Changes Employers Need to Prepare For

The Employment Rights Bill 2025 represents one of the most significant reforms to UK employment law in decades. Designed to “make work pay”, the Bill introduces wide-ranging changes aimed at strengthening worker protections, modernising workplace rights and increasing enforcement powers. 

While many reforms will be phased in through 2026 and 2027, several important changes are expected to take effect from April 2026, meaning employers should already be reviewing policies, payroll systems and HR procedures.

Here’s what we know so far — and what businesses need to prepare for now.


What Is the Employment Rights Bill?

The Employment Rights Bill was introduced as part of the Government’s commitment to overhaul UK workplace protections. Once fully implemented, it will impact: 


  • Statutory Sick Pay (SSP) 
  • Family leave entitlements 
  • Flexible working rights 
  • Zero-hours contracts 
  • Trade union legislation 
  • Workplace enforcement via a new Fair Work Agency 
  • Unfair dismissal qualifying periods (coming later) 

The reforms aim to increase security for workers while creating clearer enforcement structures across UK employment law. 

However, not all provisions will take effect immediately. The rollout is phased — and April 2026 marks the first major milestone for employers. 



April 2026: Key Changes Employers Need to Know 

1. Statutory Sick Pay (SSP) Reform 

One of the most significant April changes affects Statutory Sick Pay. 

From April 2026: 

  • SSP will be payable from day one of sickness absence (removing the current three waiting days). 
  • The Lower Earnings Limit will be removed, meaning more low-paid and part-time workers will qualify. 

What This Means for Employers:

 This change directly impacts payroll costs and systems. 


Employers should: 

✔ Update payroll software to calculate SSP from day one 

✔ Review absence management policies 

✔ Budget for increased SSP liability 

✔ Ensure managers understand the removal of waiting days 


For sectors reliant on temporary, part-time or flexible staff — including logistics and transport — this change may significantly widen eligibility. 

 


2. Day-One Family Leave Rights 

April 2026 will also introduce expanded day-one rights for: 

  • Paternity leave 
  • Unpaid parental leave 


This removes minimum service requirements previously attached to these entitlements. 


What Employers Should Do 

✔ Update family leave policies and staff handbooks 

✔ Train HR teams on revised eligibility criteria 

✔ Review internal processes for handling leave requests 


Clear communication will be important to avoid confusion among employees and line managers. 

 


3. Trade Union Reform (Phased Introduction) 

Some trade union reforms begin implementation in 2026, with adjustments to: 

  • Recognition processes 
  • Balloting procedures 
  • Industrial action rules 


While not every business will be directly affected, employers with unionised workforces should review internal consultation procedures to ensure compliance. 

 

 

4. The Introduction of a Fair Work Agency 

A new Fair Work Agency is expected to begin taking shape from 2026. This body will consolidate enforcement of: 

  • Holiday pay compliance 
  • Statutory pay 
  • Employment rights breaches 


This signals a shift toward more proactive enforcement rather than relying solely on individual tribunal claims. 


Employer Action 

✔ Conduct internal compliance audits 

✔ Ensure pay and holiday records are accurate and accessible 

✔ Review contractor and temporary worker arrangements 


Preparation now reduces future enforcement risk. 



What’s Coming After April 2026? 

While April marks the first major operational shift, further changes are expected later, including: 

  • Reduction of the unfair dismissal qualifying period (planned for 2027) 
  • Greater protections around zero-hours contracts 
  • Stronger flexible working rights 
  • Restrictions on “fire and rehire” practices 

Employers should treat April 2026 as the beginning — not the end — of employment law reform planning. 

Why This Matters for Employers 

The Employment Rights Bill signals a broader shift in UK workplace regulation: 

  • Greater day-one protections 
  • Wider statutory pay eligibility 
  • Stronger enforcement mechanisms 
  • Increased compliance scrutiny 

 

For businesses, this means: 


  • Higher administrative responsibility 
  • Potential cost implications 
  • The need for stronger HR governance 


Organisations that act early — updating policies, training managers and reviewing payroll systems — will be in a stronger position than those reacting last minute. 

 


Practical Next Steps for Employers 
To prepare for April 2026: 

1) Review Policies 

  • Sick pay 
  • Family leave 
  • Absence procedures 
  • Flexible working policies 

2) Audit Payroll & Systems 

  • Ensure SSP can be paid from day one 
  • Confirm eligibility adjustments reflect new rules 

3) Train Managers 

  • Communicate changes clearly 
  • Prevent incorrect refusals of leave 
  • Reduce grievance risk 

4) Monitor Ongoing Legislation 

  • Further regulations and guidance are expected. Staying informed will be essential. 



Final Thoughts 

The Employment Rights Bill 2025 represents a major evolution in UK employment law. While many reforms are still to come, April 2026 introduces immediate, operationally significant changes, particularly around Statutory Sick Pay and family leave rights. 

Employers who prepare early will not only ensure compliance but also demonstrate strong governance and employee commitment during a period of legislative change. 

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