The Employment Rights Act 2025 represents one of the most significant overhauls of UK employment law in a generation. Receiving Royal Assent in December 2025, the Act introduces wide-ranging reforms designed to strengthen worker protections, expand family-friendly rights, and modernise enforcement mechanisms. While implementation is phased, April 2026 marks a critical milestone, with major changes to Statutory Sick Pay (SSP) and parental leave rights coming into force.
These reforms reflect a broader policy objective: to improve job security, reduce inequality in access to statutory rights, and ensure that modern working practices align with the realities of family life and employee wellbeing. For employers, the changes require early preparation, including updates to policies, payroll systems, contracts, and management training. For employees, they represent a meaningful expansion of protections from the very first day of employment.
This article focuses on two of the most impactful April 2026 reforms: Statutory Sick Pay changes and day-one parental and paternity leave rights, and explores their implications for UK workplaces.
Statutory Sick Pay Reform: A Fundamental Shift from April 2026
SSP Payable from Day One
From 6 April 2026, Statutory Sick Pay will become payable from the first full day of sickness absence, removing the long-standing three “waiting days” during which employees previously received no statutory pay. Under the pre-reform system, SSP was only payable from the fourth qualifying day of absence, a rule widely criticised for encouraging presenteeism—employees attending work while unwell due to financial pressure.
By abolishing waiting days, the Employment Rights Act 2025 aims to ensure that workers can take necessary time off to recover without immediate loss of income, improving public health outcomes and reducing the spread of illness in workplaces.
Removal of the Lower Earnings Limit
Equally significant is the abolition of the Lower Earnings Limit (LEL) for SSP eligibility. Previously, employees needed to earn at least £125 per week (2025–26 rate) to qualify for SSP. From April 2026, all employees will be eligible regardless of earnings, including part-time and lower-paid workers who were historically excluded from statutory sick pay protection.
Government impact assessments estimate that up to 1.3 million additional workers will gain access to SSP as a result of this change, representing a major expansion of coverage and a step toward greater workplace equality.
New SSP Calculation Method
Under the new framework, SSP will be paid at the lower of:
- 80% of an employee’s average weekly earnings, or
- The statutory flat rate (expected to be £123.25 per week for 2026–27)
This approach balances enhanced employee protection with cost containment for employers, ensuring that SSP remains proportionate for lower-paid workers while avoiding excessive financial exposure for businesses.
Enforcement via the Fair Work Agency
From April 2026, SSP enforcement will fall under the remit of the newly established Fair Work Agency, a single enforcement body created by the Employment Rights Act 2025 to oversee compliance with key statutory employment rights, including holiday pay and sick pay. This signals a move away from employee-led enforcement through tribunals alone, increasing regulatory scrutiny and potential penalties for non-compliance.
Implications of SSP Reform for Employers
The SSP reforms are not merely technical adjustments; they require operational change. Employers should be preparing now by:
- Reviewing sickness absence and pay policies to remove references to waiting days and earnings thresholds
- Ensuring payroll systems can correctly calculate SSP based on the new 80% earnings rule
- Training managers on revised absence reporting and certification requirements
- Assessing the interaction between statutory and occupational sick pay schemes
Failure to update systems and policies in time may result in underpayments, employee grievances, or enforcement action once the Fair Work Agency becomes operational.
Day-One Parental and Paternity Leave Rights
Alongside SSP reform, family-friendly rights are significantly expanded from April 2026, removing long-standing qualifying periods that previously limited access for new employees.
Immediate Eligibility from First Day of Employment
From 6 April 2026, employees will have the right to take both paternity leave and unpaid parental leave from day one of employment. This removes previous service requirements of:
- 26 weeks’ continuous employment for paternity leave
- 12 months’ service for unpaid parental leave
The reform is intended to support working parents during critical early stages of employment and prevent individuals from having to delay family planning or leave new roles due to lack of statutory protection.
Removal of Continuity of Service Barriers
By eliminating continuity of service requirements, the Employment Rights Act 2025 addresses a key criticism of the UK’s parental leave framework: that it disproportionately disadvantaged those changing jobs, returning to work after career breaks, or entering new sectors. From April 2026, access to leave will be based on employment status, not length of service.
Greater Flexibility for Fathers and Partners
The reforms also introduce greater flexibility by allowing paternity leave to be taken after a period of shared parental leave, removing a previous restriction that often forced families to choose between different forms of statutory leave. This change enables families to structure leave arrangements that better reflect their individual circumstances.
Employer Responsibilities Under the New Parental Leave Framework
For employers, day-one parental rights represent a structural change rather than a minor policy update. Key actions include:
- Updating parental, paternity, and family-friendly leave policies
- Reviewing onboarding processes and probation policies to reflect immediate eligibility
- Training line managers to avoid unlawful refusals of leave based on outdated assumptions
- Communicating changes clearly to employees to foster transparency and trust
Because these rights apply from the very start of employment, mistakes are most likely to occur during probationary periods—precisely when employees may feel least able to challenge incorrect decisions.
A Broader Shift in UK Employment Law
Taken together, the April 2026 reforms signal a decisive shift in the balance between flexibility for employers and protection for workers. By expanding access to sick pay and parental leave, the Employment Rights Act 2025 prioritises health, family life, and fairness as core components of modern employment.
While some employers have expressed concerns about increased costs and administrative burden, the government’s position is that healthier, more secure workers contribute to higher productivity, improved retention, and a more resilient labour market in the long term.
The April 2026 reforms under the Employment Rights Act 2025 mark a turning point in UK employment law. Statutory Sick Pay payable from day one, the removal of the lower earnings limit, and day-one parental leave rights collectively strengthen the safety net for workers while challenging employers to modernise their practices.
As implementation approaches, preparation is essential. Employers should act now to review policies, payroll systems, and management training to ensure compliance and minimise risk. Employees, meanwhile, should familiarise themselves with their expanded rights and seek advice where necessary.
