Sweeping reforms affecting all workers have come into force, with the government confirming that roughly 15 million people, half of the entire workforce, are set to benefit. Seven key measures within the Employment Rights Act are now legally binding and will impact anyone feeling unwell before heading into work.
Key Changes to Sick Pay
One significant new change will affect anybody who phones in sick. Additional employment law updates include 'day one' rights for parental and bereavement leave, alongside an end to dodgy fire and rehire practices. Officials say the reforms will eliminate insecure work, unfair pay and poor working conditions, putting more money in workers' pockets and raising living standards. These include extending sick pay to up to 1.3 million of the lowest-paid employees.
Parliamentary Questions and Ministerial Responses
In a new parliamentary question, Labour's Dr Beccy Cooper asked Secretary of State for Work and Pensions, Pat McFadden: 'What assessment they have made of the adequacy of Statutory Sick Pay in meeting essential living costs for low-income workers.' In reply, Dame Diana Johnson, Minister of State at the Department for Work and Pensions, highlighted the new laws which are now in force. She said: 'Statutory Sick Pay (SSP) is designed to provide a minimum level of support and financial security for employees when they are unable to work due to sickness whilst also balancing the cost to employers. The government has made key changes to SSP, which came into force last month. Through the Employment Rights Act, we have removed the Lower Earnings Limit for SSP. Previously employees had to earn at least £125 per week to be eligible to receive SSP from their employer; the removal of the Lower Earnings Limit has meant this threshold no longer applies. This means up to 1.3 million more employees will be covered, supporting low-income workers and those who work for more than one employer. We have also removed the waiting period, so people can access sick pay from their first day of sickness absence. These changes will mean that employees receive around an extra £400 million a year in sick pay.'
Detailed List of Changes
- Statutory sick pay is paid from the first day of absence, instead of the fourth day. The lower earnings limit has also been removed.
- Parental leave is more readily available – including paternity leave and ordinary parental leave, or unpaid parental leave, which became a day one right, and bereaved partner's paternity leave.
- Disclosure of sexual harassment has become a 'qualifying disclosure', giving protections from dismissal and detriment.
- Fines for employers who do not consult in collective redundancy situations have doubled to 180 days' pay for each employee affected.
- Trade unions can use a simplified statutory recognition process to gain the right to negotiate with employers over pay and conditions.
- Employers must keep records of annual leave and holiday pay.
Further Parliamentary Discussion
At Work and Pensions questions after the plans were introduced, Labour MP Yuan Yang asked the Secretary of State for Work and Pensions Pat McFadden: 'What assessment he has made of the adequacy of rates of statutory sick pay.' Mr McFadden highlighted the changes: 'I believe my hon. Friend will welcome the changes the Government have made to statutory sick pay, which came into force earlier this month. For the first time ever, we have removed the lower earnings limit for statutory sick pay, as well as the waiting period so that people can access sick pay as soon as they need it. These changes will mean that up to 1.3 million more people will be covered, helping the low paid and those who work for more than one employer in particular.' Ms Yang said a key aspect was the payments from day one: 'I am indeed very proud of this Labour Government's historic Employment Rights Act 2025, which, from this month, means that workers will get statutory sick pay from the first day they are ill, rather than having to wait till the fourth. Too many people in Reading—even those working in health and care settings—are working through their illnesses; this measure will protect them, their clients and patients and improve the productivity of their workplaces. While the ERA is an important step forward, does the Secretary of State accept that the current flat rate of statutory sick pay—at four fifths of average earnings—remains a barrier to those on low incomes, and thus remains a barrier to tackling illness in the workplace?' Mr McFadden added: 'I believe that removing the three-day limit and giving access to statutory sick pay from day one, as well as making it available to those who work for multiple employers, should decrease the pressure on workers to have to work through illness. My hon. Friend will be aware that the “Keep Britain Working” review led by Charlie Mayfield also aims to work with employers to help keep people in jobs while they cope with some of the long-term sickness issues that can develop as workers get older.'
TUC and Acas Reactions
The TUC has confirmed that the new Act will deliver substantial benefits for the country, including improved health, wellbeing and job satisfaction, alongside fewer workplace disputes, leading to greater economic output and employment levels. TUC general secretary Paul Nowak said: 'The Employment Rights Act will deliver vital common sense reforms for millions of people across the country, including sick pay for all workers from day one, banning exploitative zero hours contracts and protecting workers from harassment. Too often in this debate the facts are ignored, but stronger rights at work are good for workers and employers – driving up labour market participation, improving health, raising productivity and boosting demand. The Employment Rights Act will deliver an estimated £10 billion boost to the economy – gains that far outstrip any costs. Britain will now be brought into line with other countries where workers already have better protections and, crucially, the legislation will give working people the higher living standards and secure incomes that are needed to build a decent life. Good employers will also welcome these changes: the Act protects them from competitors whose business models are built on low-paid, insecure employment.'
New sick pay entitlements are expected to carry the greatest weight for both workers and businesses, according to research. Fred Jerrome, Head of Workplace Policy at Acas (Advisory, Conciliation and Arbitration Service) warned that employers could face substantial fines. He said: '6 April marked more than the new tax year – it saw the roll out of the first major employment law changes in the Employment Rights Act 2025. But bringing new laws into force is just the first step. At Acas, we're working on how these reforms can be successful in practice. As well as training managers and communicating with staff about individual rights, Acas encourages employers to take a proactive approach to dealings with trade unions. Our collective conciliation service is on hand to assist with emerging disputes. It will be employers and unions who are ready to work well together who see the most benefits from the changes in April and beyond.'
Research and Implementation
A study commissioned by conciliation service Acas examining the Employment Rights Act's reforms found that new safeguards against unfair dismissal were also identified as substantially influential. Businesses ranked new paternity leave entitlements as their third biggest concern, while employees placed greater importance on the updated flexible working provisions. Acas said the findings would help it focus support for workers and employers where it is needed most. Niall Mackenzie, Acas chief executive, said: '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.'
List of Changes from April 2026
- Statutory Sick Pay: More employees will qualify, with no earnings threshold and no three-day waiting period.
- Day-one family leave: Employees entitled to Paternity Leave and Unpaid Parental Leave from the first day in a new job. Notice can be given from 18 February.
- Bereaved Partner's Paternity Leave: New right to time off following the death of a child's mother or primary adopter.
- Collective redundancy protections: Increase to the protective award for non-compliance.
- Whistleblowing protections: Stronger protections for workers who report sexual harassment.
- Simpler enforcement through the Fair Work Agency: A new body to uphold workers' rights and support businesses with compliance.
- Action plans: Employers with 250 or more employees will be encouraged to publish the steps they are taking to reduce their gender pay gap and support employees experiencing menopause.
The New Six-Month Qualifying Period
Employees currently need to work for two years before they can claim ordinary unfair dismissal. This has long provided employers with a substantial window to assess new employees and address any performance or conduct issues without the risk of unfair dismissal claims. However, from 1 January 2027, employees will gain unfair dismissal protection after six months in post. The government's original proposal was to introduce protection from day one of employment, but this was scaled back before the Bill became law.
Sick Pay Details
From 6 April 2026, the Employment Rights Act 2025 transformed Statutory Sick Pay (SSP) into a 'day one' right, removing the three-day waiting period and the lower earnings limit. SSP will be paid from the first day of sickness and be available to all workers regardless of income. SSP is a statutory entitlement that provides income to employees who are off work due to illness. As it stands, SSP: is paid from the 4th day of sickness (with the first 3 'waiting days' being unpaid), pays a fixed weekly rate of £109.40 (as of 2025), regardless of your usual income, and requires employees to earn at least £123 a week (meaning employees earning less than this don't qualify for SSP). What changed from April 2026? The upcoming changes proposed under the Employment Rights Bill will make SSP more accessible, flexible, and fair. Here's what you need to know: SSP from Day 1: SSP will now be available from the first day of absence, removing the three unpaid waiting days. This change is crucial for employees in lessening the financial pressure during illness, especially for those with unpredictable health conditions. No Earnings Threshold: The lower earnings limit will be scrapped, meaning those on low wages, part-time contracts, or with irregular hours, who previously didn't qualify for SSP, will now be eligible. Pay Based on Earnings: Instead of a flat weekly amount, SSP will be calculated as a percentage of your usual income. This means that employees will receive an amount more closely aligned with their regular income, which helps create a fairer system, especially for those who are lower paid.
