Major Sick Pay Overhaul Begins April 2026: Key Employment Law Changes
Anyone taking a day off sick from work will experience a significant transformation in their rights from April 6, 2026, as the government implements sweeping changes to employment legislation. The cornerstone reform sees Statutory Sick Pay (SSP) becoming payable from the very first full day of sickness absence, eliminating the previous three-day waiting period entirely.
Expanding Financial Security for Lower-Paid Workers
The government states these modifications are designed to ensure lower-paid employees achieve greater financial security during periods of illness, while simultaneously helping to reduce the spread of infections within workplaces. Crucially, SSP will now be available to all eligible employees regardless of their earnings, as the Lower Earnings Limit threshold is being removed.
New research commissioned by the conciliation service Acas indicates that the revised sick pay rights will have the most substantial impact on both workers and employers. The study, examining changes under the Employment Rights Act, found that new protections against unfair dismissal were also highlighted as highly significant.
Survey Reveals Priority Concerns
The Acas survey revealed that 43% of employers identified workers receiving sick pay from the first day of illness, rather than the fourth, as the change with the biggest impact on their operations. Meanwhile, 36% of workers also listed this reform as their top concern.
Workers gaining protection from unfair dismissal after six months in a job, instead of the previous two-year requirement, was the second most commonly chosen reform. This change was selected by 31% of employers and 30% of employees surveyed.
Key Changes Taking Effect
The Employment Rights Act introduces a comprehensive suite of modifications:
- Statutory Sick Pay (SSP): Payable from the first full day of sickness absence. The rate will be calculated at 80% of an employee's average weekly earnings or the flat weekly rate, whichever is lower.
- Paternity Leave: Becomes a "Day One" right from April 2026.
- Unfair Dismissal: New "6-month rule" for protection expected to take effect from January 2027.
- Minimum Wage Increases: From April 1, 2026, rates rise to £12.71 for workers aged 21+, £10.85 for ages 18-20, and £8.00 for under-18s and apprentices.
- Statutory Pay Rates: Statutory parental pay increases to £194.32 per week, with SSP rising to £123.25 per week.
Additional Protections and Enforcement
Further significant changes are scheduled for implementation later in 2026. From October, "fire and rehire" practices will become more difficult, particularly for alterations to core terms like pay. Employers will need to provide stronger justification and conduct more robust consultation before imposing contractual changes.
Sexual harassment obligations will also expand considerably. Employers must take "all reasonable steps" to prevent harassment, including incidents involving subcontractors, agency workers, and clients. Importantly, the act of reporting sexual harassment will be specifically considered as a protected disclosure in its own right under the new rules.
Women Set to Benefit Significantly
Research from the Trades Union Congress (TUC) indicates that approximately 4.7 million women are poised to benefit from the stronger sick pay provisions starting in April. This includes more than 830,000 women who will receive statutory sick pay for the very first time.
These individuals represent the lowest-paid female workers, who were previously ineligible for sick pay because their earnings fell below the £125 per week threshold. The TUC emphasized that low-paid workers, especially women, have been excluded from any form of sick pay for too long, often forcing them to work while ill.
Beyond enhanced sick pay, from April 2026, fathers and partners will gain a day one right to paternity leave, while all parents will obtain the day one right to unpaid parental leave under the Employment Rights Act changes.
TUC General Secretary Paul Nowak stated: "For too long women have borne the brunt of a sick pay system that is not fit for purpose, and a culture of exploitative, insecure work. That's why the Employment Rights Act is an important step forward for women at work."
Government and Industry Response
A Government spokesperson commented: "The Employment Rights Act is a huge boost for women in the workplace – introducing enhanced protections for pregnant women and new mothers, menopause action plans for large employers and rights for parental leave from day one. Women thriving in the workplace is not just important for equality but for boosting economic growth."
Niall Mackenzie, Acas Chief Executive, added: "The Employment Rights Act is a major shake-up in employment law and will impact businesses and workers across the country. It's crucial that both employers and employees get to grips with the new rules, and Acas remains best placed as independent experts helping everyone at work throughout this period of change. Acas will be working with employers, workers and their representatives on the implementation of the Employment Rights Act and we will be updating our advice and training."
The new Fair Work Agency is also set to launch in April 2026 to enforce holiday pay and sick pay regulations, providing additional oversight for these transformative workplace rights.
