How changes to the Employment Rights Act may affect your business

We review the changes to the Employment Rights Act and what they could mean for your business.

The Employment Rights Act 2025 was only introduced last year, becoming law on 18th December 2025. Its introduction marked the start of a major overhaul of employment law, with the aim of increasing job security, abolishing zero-hours contracts, and strengthening union rights. Such a large shake-up cannot be implemented in one go; therefore, changes have been phased to take effect at certain times through the next couple of years.

Below, we summarise the key changes that are being introduced in April and August this year, and what this could mean for your business.

April 2026 Changes

• Paternity leave became a 'day one right' for employees from 6 April 2026. Newly eligible employees have been able to give notice that they intend to take leave since 18 February 2026. Before this change, someone must have worked for their employer for 26 weeks before being entitled to such leave. 

• Ordinary parental leave (or unpaid parental leave) has also become a ‘day one’ right, with employees having had to have worked for their employer for one year to be eligible previously.

• Statutory sick pay (SSP) will now be paid from the first day of illness, instead of the fourth day. 

• The maximum 'protective award' for failure to consult in collective redundancy doubles from 90 days' pay to 180 days' pay. 

• Sexual harassment has become a 'qualifying disclosure' under whistleblowing law, as of 6 April 2026. This change brings added protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure. 

• Employers will need to create action plans around menopause and gender pay gaps. These became voluntary from 6 April 2026, with a view to becoming mandatory sometime in 2027. Once in place, these action plans will have a significant impact on the levels of support available for menopausal employees, whilst reducing unfair pay disparity amongst employees.

• How a trade union can be recognised in a workplace will be simplified. This will be backed up by an updated Code of Practice on trade union recognition, which is expected to come into force in October 2026.

• The Fair Work Agency was established on 7 April 2026. This body will bring together enforcement of key employment rights into one place, resulting in better access to guidance and support, particularly for employers.

August 2026 Changes

• Trade union members will be able to vote electronically or in-person in ballots for industrial action, union elections and other statutory ballots. This is dependent on both the employer and trade union agreeing.

• The above then allows for the removal of the requirement for a 50% turnout for industrial action ballots. This change had originally been expected to take effect in April 2026.

What does the above mean for businesses

The Employment Rights Act 2025 represents a major overhaul of Employment Law that we have not seen in decades. The overarching theme of the reforms is to further support the existing and upcoming workforce, providing more rights, protection, and clarity over legal processes. Naturally, businesses will need to adopt a proactive approach to comply with the changes. Thorough reviews of handbooks, policies, and employment contracts will be essential, as will ensuring there is considered planning for each stage of the changes. Keeping up with these changes is not only a legal requirement but will serve to create and maintain a fair, productive and happier working culture.

At HCB Solicitors, we have a national team of dedicated employment law specialists that can help you navigate these important changes and provide quality, commercially-sound advice, ensuring that you keep up with the latest legislations. If you are in need of some guidance, then we are here to support – feel free to contact us to find out more.