The Employment Rights Act: What It Means Right Now (and What’s Still Coming)

The Employment Rights Act 2025 received Royal Assent in December 2025, and the changes have been arriving in waves ever since. Some significant changes are already in force, with more to come before the year ends. And one of the biggest shifts of all lands in January 2027.

Here’s the full picture.

What changed in April 2026 and is already law

Statutory Sick Pay is now a day-one right

The three-day waiting period for Statutory Sick Pay no longer exists. Employees are entitled to SSP from the first day of absence, with no qualifying wait.

The Lower Earnings Limit has also been removed. Previously, employees earning below £123 per week were not entitled to SSP at all. That threshold is now gone. If an employee is sick, they’re entitled to SSP regardless of how much they earn.

The payment rate has changed too. Employees now receive either 80% of their average weekly earnings or the standard weekly SSP rate, whichever is lower. Check out this page to see HMRC’s current SSP rates and further technical guidance.

For payroll teams, this means reviewing every absence policy and payroll configuration that assumed the three-day wait. If your system was set up under the old rules, it could be misconfigured.

Paternity Leave and Unpaid Parental Leave are now day-one rights

Employees no longer need to meet a service threshold to take Paternity Leave or Unpaid Parental Leave. Both are now available from the first day of employment. However, the notice requirements still apply.

Bereaved partners get 52 weeks of leave

Bereaved fathers and partners are entitled to up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life. This is a statutory entitlement and applies from day one of employment.

The maximum collective redundancy protective award has doubled

When employers fail to comply with collective consultation obligations during redundancy processes, the protective award that employment tribunals can order has been doubled. This is now up to 180 days of pay per affected employee. This raises the financial exposure for businesses that cut corners on redundancy consultations. Acas’s collective redundancy guidance is worth reviewing if you’re advising employers on restructuring.

Whistleblowing protections now cover sexual harassment

Workers who report sexual harassment in the workplace are now explicitly covered by whistleblowing protections. This means they can’t be dismissed or subjected to detriment for raising these concerns. The substantive harassment law hasn’t changed, but it extends the procedural protection.

What employment rights changes are coming in October 2026?

The next significant wave arrives in October 2026, and it centres on harassment and workplace conduct.

Employers will be required to take “all reasonable steps” to prevent sexual harassment of their employees, which is a higher standard than the previous “reasonable steps” requirement. Separately, a new obligation on employers not to permit harassment of employees by third parties (clients, contractors, members of the public) also takes effect.

There’s also a tightened tipping law coming to law, which will mean that employers will be legally required to pass all tips to workers without deduction, and a new duty to inform workers of their right to join a trade union.

What employment rights changes are coming in January 2027?

The qualifying period for unfair dismissal protection will be reduced from two years to six months. From that date, employees with six months’ service will have full unfair dismissal protection. The cap on the compensatory award, which is currently £115,115, is also being removed. There will be no limit on what a tribunal can award for unfair dismissal.

The two-year qualifying period has long functioned as a buffer during probationary periods and early employment. From January 2027, that buffer is three-quarters shorter, and the financial exposure on the other side is uncapped. CIPD’s employment law guidance covers the implications in detail.

Employers who currently rely on the two-year threshold as informal employment risk management need to restructure that approach before January. That means documented performance management from the start of employment, clear probation processes with proper feedback, and HR practices that can withstand tribunal scrutiny from month seven onwards.

What can Payroll and HR teams do now?

First, check your SSP configuration. If your payroll system still has the three-day waiting period or the Lower Earnings Limit built in, you are already applying the wrong rules. Update it now and review any absences since April for potential back-payment.

Second, update your employment contract templates and policy documents to reflect day-one Paternity Leave, Unpaid Parental Leave, and Bereaved Partner Leave entitlements. Contracts that state service requirements for these rights are now incorrect.

Third, begin preparing for January 2027. Audit your probation and performance management processes.

For full details on the Employment Rights Act 2025 timeline, see the GOV.UK implementation timetable.

This content may have been developed with the assistance of AI tools. Content is reviewed by a member of the Bright team before publication. Guidance on legislation can be obtained from your industry body.