UK Employment Rights Act Changes from April 2026

The UK Employment Rights Act 2025 introduces major workplace reforms that begin to take effect in April 2026. The changes affect sick pay, family leave, redundancy consultations, whistleblowing protection, enforcement rules, and minimum wage levels. For multinational companies operating in the UK, the reforms require careful policy updates and stronger HR processes. This article outlines what has already changed, what arrives in April 2026, and what employers should prepare for next.

What is the purpose of the Employment Rights Act 2025?

The Employment Rights Act 2025 forms a key part of the government’s Plan to Make Work Pay, which aims to strengthen job security and improve working conditions. The Act became law on 18 December 2025, and its provisions will be introduced in stages throughout 2026 and 2027.

Because the reforms arrive in phases, companies must monitor several implementation dates rather than making a single adjustment.

What changed before April 2026?

Some provisions already took effect in February 2026, particularly those related to industrial action.

Dismissal linked to lawful strike participation now counts as automatically unfair, removing the previous 12-week limit. At the same time, the notice period for industrial action decreased from 14 days to 10 days, and strike mandates now last 12 months instead of six. The requirement for picket supervisors has also been removed.

What changes take effect in April 2026?

April 2026 introduces the first major wave of employment reforms.

Statutory Sick Pay will now apply from the first day of illness, rather than starting on the fourth day. In addition, the lower earnings limit will be removed, allowing more part-time and lower-paid workers to qualify.

Family leave rights will also expand. Paternity leave and unpaid parental leave will become day-one employment rights, meaning employees no longer need to meet service requirements before accessing them.

The law also strengthens penalties for employers who fail to consult properly during collective redundancies. The maximum protective award increases from 90 days’ pay to 180 days’ pay per employee. If an employer also fails to follow the ACAS Code of Practice, tribunals may increase the award by up to 25%, creating potential liability of up to 225 days’ pay.

Another change affects whistleblowing protection. From April 2026, disclosures related to sexual harassment will qualify as protected whistleblowing reports. Employees who raise these concerns will gain protection from detriment and unfair dismissal.

What new enforcement rules are introduced?

On 7 April 2026, the government will launch the Fair Work Agency, a new authority responsible for enforcing several employment rules.

The agency will oversee National Minimum Wage compliance, employment agency regulation, gangmaster licensing, and labour exploitation enforcement. It will also gain authority to enforce holiday pay obligations, which signals stronger regulatory oversight for employers.

At the same time, the National Minimum Wage will increase from 1 April 2026. The rate for workers aged 21 and over will rise to £12.71, while workers aged 18–20 will receive £10.85, and 16–17 year olds and apprentices will receive £8.00 per hour.

What further changes should companies prepare for?

Additional reforms will follow later in the rollout.

From October 2026, employers may become liable for harassment committed by third parties, such as customers or clients, unless they can show they took all reasonable steps to prevent it. In addition, employment tribunal time limits will extend from three months to six months.

A further change will arrive in January 2027. Unfair dismissal protection will apply after six months of employment instead of two years, and the cap on compensatory awards will be removed. Employees hired from July 2026 onward will benefit from this change.

What should employers do now?

Businesses should begin preparing for these reforms by reviewing family leave policies, sick pay procedures, and redundancy consultation practices. Employers should also ensure payroll systems reflect the new minimum wage rates and strengthen record-keeping processes for wage and holiday pay compliance.

Training HR teams and managers will also help organisations manage the expanded employee rights and enforcement powers.

What’s next?

Managing employment law compliance requires detailed planning and full legal awareness. For more insights into processes in other jurisdictions, explore our article, The CS3D Omnibus Is Here: What Changed and What It Means for Your Business.

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