The Employment Rights Act 2025: What to Expect in the First Half of 2026

With the Employment Rights Act (ERA 2025) having finally received Royal Assent on 18 December 2025, we look at the changes we can expect to see in the next six months and how employers can prepare for those changes.

What will change first under the Employment Rights Bill?

Trade unions and industrial action

The first set of measures to come into force under the ERA 2025 are related to trade unions and industrial action and either came into force on the day the ERA 2025 received Royal Assent or will do so two months following Royal Assent. Further information on these measures is available here.

What changes are expected in April 2026?

It is expected that the following measures will come into force in April 2026. We consider what will change and how employers can start to prepare for the changes.

Family‑friendly leave

• Paternity leave (currently requiring 26 weeks service) and unpaid parental leave (currently requiring one year’s service) will become day one rights for eligible employees.
• The current restriction on taking paternity leave and receiving statutory paternity pay following a period of shared parental leave and shared parental pay will be removed.
• Employers should prepare for these changes by updating relevant family-friendly policies. Updated policies will be accessible to retained AfterAthena clients before April 2026.

We have discussed family friendly rights under the Employment Rights Bill in this guide.

Statutory Sick Pay (SSP)

• SSP will be payable from day one of illness (instead of the current fourth day) which will abolish the three-day waiting period.
• Removal of the lower-earnings threshold will enable eligibility for SSP for low-paid workers. A new system will be introduced to provide fair earnings replacement for people earning below the current rate of SSP, meaning that employees will be entitled to the flat weekly rate of SSP or 80% of their normal weekly earnings, whichever is lower.
• Employers will face increased liability for SSP as a result of the above changes. Further regulations will be required to bring these changes into effect. However, employers should start to audit relevant policies and payroll systems to refer to/handle SSP from day one of absence and removal of the lower-earnings thresholds.

Our guide on the Employment Rights Bill and SSP offers further reading.

Collective redundancy

• The protective award compensation cap will double from 90 to 180 days’ pay for breaches in redundancy consultation obligations.
• Whilst this change will not have a direct impact unless a claim or claims for failure to consult are issued, it does increase the potential liability on employers for failures in collective redundancy consultation obligations. Employers should carry out a full risk analysis before commencing large-scale redundancy processes which could lead to 20 or more employees being made redundant, having regard to the Statutory Code of Practice on Dismissal and Re-engagement and also keep an eye out for upcoming changes to the threshold at which collective consultation obligations kick in (expected in 2027). Further regulations will be required to bring this change into effect, and we will provide further updates as this progresses.

We’ve covered the impact of the Employment Rights Bill on collective redundancies in more detail here.

Whistleblowing

• Reporting that sexual harassment has occurred, is occurring or is likely to occur will qualify as a “protected disclosure” under whistleblowing law. Protection will only apply where the worker reasonably believes that the disclosure is made in the public interest.
• Further regulations are required to bring this measure into effect; however, employers should start preparing now by updating their whistleblowing policies and procedures to ensure they formally cover sexual harassment disclosures. Further, managers should be trained to spot such disclosures and take appropriate action to investigate sexual harassment complaints under whistleblowing procedures. An updated whistleblowing policy will be accessible by retained AfterAthena clients in advance of April 2026.

Fair Work Agency

• Establishment of a new single enforcement body to oversee labour rights (although it is not yet clear when the Agency’s enforcement powers will come into force). See our earlier article here for further information.

Learn more with our guide to Fair Work Agency.

Trade unions and industrial action

• The existing framework for trade union recognition will be simplified, intended to provide workers with a meaningful right to organise through trade unions. This will include removing the 40% support threshold for recognition ballots, removing the requirement for unions to demonstrate at the application stage that there is likely to be majority support for trade union recognition and introducing the potential to reduce the 10% of union membership threshold for the Central Arbitration Committee to accept a trade union application.
• Introduction of electronic workplace balloting. The government is currently consulting on a draft code of practice on electronic and workplace balloting for statutory workplace balloting. The consultation will close on 28 January 2026 and an order by the Secretary of State will be required to introduce electronic balloting.
• Employers can prepare for these new rules by keeping abreast of developments as we approach April 2026, particularly keeping an eye out for publication of the code of practice on electronic and workplace balloting. In due course, training around recognition and strike procedures and balloting is advised.

For further reading on changes to trade union law under the Employment Rights Bill, explore our guide.

Commentary

These upcoming changes, and those scheduled to take effect in October 2026 and throughout 2027, significantly enhance employee rights and employer obligations. Ensuring proactive adjustments now will keep your organisation compliant, reduce risk, and support a strong employee experience as the changes start to take effect.

To stay abreast of Employment Rights Act 2025 updates, plus access to a community of HR leaders and a toolkit of AI tech to streamline your HR processes, download our App for Apple or Android today.