Several of the reforms being introduced by the Employment Rights Act 2025 have come into force in April 2026. These developments signal a move towards stronger worker protections and greater regulatory oversight. While the changes – ranging from enhanced enforcement to reforms to statutory sick pay and expanded leave entitlements – aim to modernise the workplace, they also introduce new operational and financial considerations for employers.

This article provides an overview of the key developments in April 2026 and the action points that employers should consider in response.

Changes in statutory rates and payments

Various employment related rates and limits increase in April 2026.  A full summary of the new rates and limits are set out in our Employment Fact Card.

Action Points:

• Ensure that all payments are in line with current rates
• Ensure payroll processes are up to date to take into account the new rates

Reforms to Family Leave

Paternity Leave and Parental Leave

From 6 April 2026, employees have gained the right to take paternity leave and unpaid parental leave from the first day of employment. Previously, employees needed 26 weeks’ of continuous service at the relevant date to be entitled to paternity leave and 1 years’ service for parental leave.

Whilst the length of service requirement has been removed with regards to eligibility for the time off itself, the 26-week length of service requirement as at the relevant date will remain in place for entitlement to Statutory Paternity Pay.

We also see a change in the interaction of Paternity Leave with Shared Parental Leave. Currently, taking Shared Parental Leave before using Paternity Leave results in the loss of paternity entitlements. However, this restriction will now be lifted entirely.

These reforms align paternity rights more closely with maternity leave and significantly improve flexibility for an employee who may be new to the employer.

Bereaved Partner’s Paternity Leave

April has also seen the introduction of a new right to Bereaved Partner’s Paternity Leave. The introduction of this right will allow an employee to take up to 52 weeks of unpaid leave where their child’s primary carer (such as their mother or primary adopter) dies within 52 weeks of the child’s birth or adoption placement.

Action Points:

• Review and update relevant policies and procedures
• Implement new policy in respect of new right to Bereaved Partner’s Paternity Leave.

Statutory Sick Pay (SSP)

From 6 April 2026, we see the removal of the three day waiting period which meant SSP was only payable from the fourth day of absence and instead SSP will be payable to an employee from the first day of sickness absence.

The lower earnings limit to be eligible for SSP has also been removed, which means that SSP will become more widely accessible, as those in lower paid roles will now qualify.

Action Points:

• Review and update sick pay provisions in employment contracts and related policies and procedures
• Ensure payroll systems are set up to comply with the new sick pay requirements
• Consider how to budget for increased sick pay costs
• Consider whether management of sickness absence needs to improve to reduce costs

Collective Redundancy: Protective Award

The implementation of the ERA 2025 will also see the maximum threshold for the protective award in collective redundancies double in size. Previously, if an employer did not comply with the collective consultation requirements for redundancies (which currently apply where an employer is proposing 20 or more dismissals at one establishment within a 90 day period), it could face a protective award of up to 90 days’ pay per employee. From April 2026, employers will see this increase to up to 180 days’ pay per employee.

This is now a much greater financial risk for employers who fail to consult properly and therefore this should incentivise employers to ensure stricter compliance with redundancy procedures.

Action Points:

• Keep careful records of redundancy dismissal within the business to ensure that the thresholds are not inadvertently triggered
• Ensure managers are trained on the requirements relating to redundancy dismissal where relevant

Enhanced whistleblowing protections

To encourage the reporting of workplace misconduct, the ERA 2025 explicitly adds sexual harassment to the list of protected whistleblowing disclosures. This means that from 6 April 2026, employees cannot be dismissed, nor suffer a detriment for reporting sexual harassment.

Action Points:

• Update policies on whistleblowing and sexual harassment
• Ensure managers are aware of and trained on new requirements
• Update training for other staff to refer to the new protections

The introduction of the Fair Work Agency

This month sees the launch of a new statutory body, the Fair Work Agency. The Agency will act as a single, centralised authority for enforcement of various rights in the workplace, including holiday pay, Statutory Sick Pay and National Minimum Wage (NMW). It combines existing government bodies, bringing them under one roof, with the aim of simplifying the process for employees and employers alike.

Action Point:

As the Government is looking to enhance enforcement of fundamental employment rights, consider a HR audit to ensure that your practices in relation to matters such as holiday pay, sick pay and NMW are up to date.

Holiday Pay Records

From 6 April 2026, employers must keep “adequate” records of annual leave and holiday pay. These records include:

• Annual leave taken;
• Annual leave carried over from previous years;
• Holiday pay; and
• Payments in lieu of holiday.

This is mandatory for all employers, and such records must be retained by employers for six years from the date on which they are made. This will be an area of which the Fair Work Agency – as mentioned above – will have enforcement powers, with the ability to pursue criminal sanctions for non-compliance.

Action Point:

Review current record keeping to ensure all relevant matters are covered.

Trade Union Rights

Another area which is due to see significant expansion is industrial relations and protection for trade unions in the workplace. The key changes we will see from 6 April 2026 include simplified recognition for unions, removing the 40% ballot threshold previously in place and lowering the 10% membership threshold to potentially as little as 2%.

April will see just the beginning of the reform in this area, with more changes to strengthen the role of unions in the workplace due to be phased in throughout the year.

Action Point:

Ensure managers are up to date with the new rules.

Gender Pay Gap and Menopause Action Plans

From April 2026, employers with 250 or more employees have the option to produce and publish a voluntary action plan alongside their gender pay gap data. Subject to legislation, these will become mandatory from spring 2027. The purpose of action plans is to support employers to take effective action to improve workplace gender equality. Action plans should show the steps the employer is taking to address their organisation’s gender pay gap and support employees experiencing menopause.

Government guidance on the new requirements can be viewed here.

Action Point:

Employers with a larger workforce (250+) should review the new Government guidance and use the voluntary phase to prepare and get to grips with the requirements that will soon become mandatory for them.

Future Changes

The changes referred to above are only part of the reforms due to come into effect under the Employment Rights Act 2025.  Further changes are expected to come into effect in the Autumn and beyond.  We will keep you up to date with significant developments.  If you have any queries about the Employment Rights Act 2025 or employment matters generally, please contact the TW Employment Team here.

Disclaimer: General Information Provided Only

Please note that the contents of this article are intended solely for general information purposes and should not be considered as legal advice. We cannot be held responsible for any loss resulting from actions or inactions taken based on this article.