April: A sea-change begins for employment law

A version of this article was first published by Reward and Benefits Association in April 2026.

When Parliament passed the Employment Rights Act 2025 in December last year, it fired the starting gun on the most significant overhaul of UK employment law in decades. Representing a fundamental shift in the balance of rights at work, the Act reshapes every stage of the employment relationship – from contracts through to dismissal.

For employers, the scale and pace of change means preparation is essential. While further reforms are scheduled for later in the year – including expanded anti‑harassment protections and enhanced trade union access rights from October and with (much) more to come in 2027 – April brought the first wave of major change that has an immediate operational and financial impact.

What changes from April?

Statutory sick pay: day one entitlement

From 6 April, statutory sick pay (SSP) became payable from the first day of employee absence (rather than the fourth), and the lower earnings threshold for eligibility is removed. This means all eligible employees will qualify for some level of SSP, regardless of earnings.

For employers who do not already offer sick pay from day one, this change carries clear cost implications. There may also be concern that removing the waiting days could increase short‑term absence levels. Reviewing absence management processes, ensuring return‑to‑work conversations actually happen and equipping managers on how to deal with absence will be critical to mitigate these risks.

Day one rights to family leave

6 April also saw the introduction of day one eligibility for paternity leave and unpaid parental leave. Previously, employees needed six months’ service to take paternity leave and a full year to qualify for parental leave.

Importantly, only the right to take paternity leave has changed. Eligibility for statutory paternity pay remains subject to six months’ service. Employers offering enhanced pay for other types of family leave will need to decide whether – and how – to adjust their approach, particularly where an employee may still be on probation. Policies should be updated promptly, and line managers briefed so that requests are consistently handled in line with the new law.

Holiday record‑keeping obligations

An unexpected change announced for April (we knew it was coming – just not in April this year) is the new requirement to keep records demonstrating employer compliance with Working Time rules on holiday entitlement and pay. Employers must retain these records for six years.

Many organisations already hold this information, but it may be spread across multiple systems or formats. The immediate challenge is ensuring records are sufficiently clear, complete and accessible to evidence compliance. Spot‑checking different worker groups is a sensible starting point to identify information gaps which may need to be addressed.

Collective redundancies

On 6 April, the cap on the protective award (the amount that can be awarded where an employer fails to comply with its obligations to collectively inform and consult employees) increased from 90 days to 180 days’ uncapped pay per affected employee. This increased cap underlines the importance of getting collective processes right. As a pre-emptive step, employers may want to consider training for their line managers, HR teams and leaders to ensure that they are aware of the legal and procedural obligations on an employer when proposing redundancies.

Fair Work Agency

A new ‘Fair Work Agency’ (FWA) was established on 7 April 2026 to enforce certain employment law rights, including National Minimum Wage, holiday pay and statutory sick pay. The FWA could herald a real change of approach to the enforcement of employment rights – to date, state intervention has been limited, and enforcement has largely been driven by individuals bringing employment tribunal claims. The powers contained in the Act would give the FWA real teeth to enforce employment rights, but it remains to be seen what resources and level of funding it will ultimately receive.

Trade union recognition

Finally, as part of the government’s commitment to strengthening collective bargaining, from April, the Act lowers the threshold for trade unions to achieve statutory recognition. As well as having to inform workers of their right to join a union, changes expected in October mean employers may also be required to provide unions with physical and/or digital workplace access.

Even employers without a recognised trade union should review their employee engagement strategies now to take account of this shift towards collective representation.

What should employers do now?

April marks the beginning of what will be an extensive journey of employment reform. Employers who invest the time now to understand and plan for the myriad changes that lie ahead will reap the benefits over the months to come.

We have been advising employers across all sectors on the impact of the new Employment Rights Act provisions. If we can help your organisation with any aspect of the ERA please contact Luke Bowery or get in touch with any other member of the Burges Salmon Employment team.

Want to know more about the Employment Rights Act 2025, our hub is a treasure trove of practical employer resources.