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The UK employment law landscape is undergoing one of its most significant transformations in decades, following the introduction of the Employment Rights Act 2025.

With the first wave of reforms now live across early 2026, employers and employees alike are beginning to see the real-world impact of these changes, particularly around sick pay, family leave, and workplace protections.

So, what has changed so far, how is this affecting the workplace, and what should organisations be preparing for next?

Sergio Abreu at ARAG Law takes a look.

 

The first wave of changes: what’s already in force

The government has taken a phased approach, with the most immediate changes coming into effect between 18th February and 6th April 2026.

Statutory Sick Pay expanded

One of the most impactful changes is the reform of Statutory Sick Pay (SSP):

  • SSP is now payable from day one of absence
  • The previous three-day waiting period has been removed
  • The earnings threshold has been abolished, bringing more workers into scope

What this means in practice:

More employees are eligible for sick pay, and employers may see increased short-term absence costs, particularly in lower-paid or part-time workforces.

Day-one rights for family leave

Employees now have access to key family-related leave from the first day of employment, including:

  • Paternity leave
  • Unpaid parental leave

In addition, a new right has been introduced:

  • Bereaved Partner’s Paternity Leave

    Allowing up to 52 weeks’ leave following the death of a child’s mother or primary adopter

Why this matters:

This removes long-standing qualifying periods and aligns family leave more closely with modern workforce expectations around flexibility and support.

Stronger workplace protections

Several updates focus on improving fairness and safety in the workplace:

  • Enhanced whistleblowing protections, particularly for reporting sexual harassment
  • Collective redundancy penalties doubled, increasing the financial risk of non-compliance
  • Increased obligations on employers to record and evidence holiday entitlement compliance

Impact:

Employers face higher compliance expectations, along with greater exposure to legal and reputational risk where processes fall short.

Trade union and industrial action reforms

Early changes have also reshaped trade union rules:

  • Simplified industrial action ballot requirements
  • Reduced notice periods for industrial action
  • Stronger protections against dismissal for participating in action

What this means:

There may be increased union activity and a more balanced framework for industrial relations moving forward.

Early impact: how workplaces are responding

Although still early in implementation, several clear themes are emerging.

Greater accessibility of rights

The shift to day-one entitlements represents a major cultural change:

  • New joiners now have immediate access to key benefits
  • Employment rights are becoming more universal and inclusive
  • Barriers for lower-paid and temporary workers are being reduced

Increased compliance pressure for employers

For many organisations, the challenge is operational:

  • Policies, contracts, and HR systems must be updated quickly
  • Payroll and absence management processes need revision
  • Managers require training to apply new rules consistently

Failure to adapt could result in financial penalties or tribunal claims, particularly in areas like redundancy and sick pay.

A shift towards enforcement and accountability

The introduction of a Fair Work Agency signals a move towards stronger enforcement of employment rights.
Combined with enhanced protections and record-keeping requirements, the direction of travel is clear:
Employment law is becoming more actively enforced, not just legislated.

What’s coming next: further changes on the horizon

While April marked the first major milestone, many of the most far-reaching reforms are still to come.

Later in 2026 (Expected October 2026)

Expected developments include:

  • Further measures on harassment prevention and workplace protections
  • Progress on employment tribunal process changes
  • Ongoing consultation outcomes shaping final rules

2027 and beyond

More structural reforms are planned, including:

  • Shorter qualifying period for unfair dismissal protection (Expected 1st January 2027)
  • Removal of caps or changes to compensation rules (subject to final regulations) (Expected 1st January 2027)
  • Strengthened rights around flexible working, including stricter requirements on employers to justify refusals
  • Potential reforms to zero-hours contracts and job security

These changes will further reshape how employment relationships are managed across the UK.

What businesses should focus on now

With the rollout continuing, organisations should prioritise:

  • Policy and contract reviews to reflect day-one rights
  • Updates to absence, pay, and leave processes
  • Training for line managers on new obligations
  • Monitoring consultation outcomes to stay ahead of future changes

In short, this is not a one-off update, it’s an ongoing programme of reform.

Final thought

The first wave of employment rights reform marks a clear shift towards:

  • Greater worker protection

  • Earlier access to rights

  • Stronger enforcement and accountability

For employees, this means a fairer and more supportive working environment.

For employers, it represents both a challenge and an opportunity, to modernise processes, build trust, and stay compliant in an evolving legal landscape.

 

Watch our Employment Rights video

 
 

Disclaimer - all information in this article was correct at time of publishing.

 

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