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Employment rights reform takes off

Employment rights reform takes off

Many of the headline reforms being introduced by the Employment Rights Act 2025 will not land until 2027, but employers need to be aware of the new day one rights which employees are entitled to from 6 April 2026.

New day one rights

Several statutory rights will now be available to employees immediately.

Statutory sick pay: Entitlement to SSP previously applied from the fourth day of sickness, but this three-day waiting period has been removed. The lower earnings threshold has also gone, so all employees are now eligible for SSP. From 6 April 2026, employees off sick receive the lower of either the rate of SSP (£123.25 weekly) or 80% of their average weekly earnings.

Employers may find themselves having to deal with more cases of sick leave abuse, and these will need to be handled carefully. Approaches to reducing abuse include asking employees to check in regularly when off sick and holding return to work interviews.

Paternity and ordinary parental leave: These are likewise now day one rights. Previously, paternity leave was only available after 26 weeks of employment, with unpaid ordinary parental leave only becoming available after working for a year. However, the 26-week qualifying requirement has not changed in regard to paternity pay.

Bereaved partner’s paternity leave: Although introduced by separate legislation, this is another new day one right that came in from 6 April 2026; there is no statutory pay requirement. The new leave can be taken by an employee who loses the mother of a child within the first year of the child's life. Up to 52 weeks of leave can be taken depending on when bereavement occurs. The same leave is available if a child is adopted and the primary adopter dies.

January 2027: unfair dismissal

Protection from unfair dismissal currently only kicks in after two years of continuous employment.

  • Although originally expected to be a day one right, from 1 January 2027 protection from unfair dismissal will now become a right after six months of employment.
  • When faced with the potential day one right, employers were concerned that in future they would be unable to easily dismiss those employees whose performance was not up to par. Under the final iteration, employers will have six months to assess an employee’s capabilities.
Sick leave abuse will need to be handled carefully. Approaches to reducing abuse include asking employees to check in when off sick and return to work interviews.

With the limit on awards for unfair dismissal being removed at the same time, the financial cost of getting things wrong could be significantly higher in future. Employers should use the remainder of 2026 to strengthen their recruitment practices.

Coming in 2027

Additional rights are expected to come through in 2027, including statutory leave rights for those suffering pregnancy loss. Workers on zero-hours and low-hours contracts will get the right to guaranteed working hours – if they want them. Workers will have the right to a stable contract reflecting the hours they regularly work over a reference period, which is expected to be 12 weeks.

Workers will also have to be paid for any shifts that are cancelled, moved at short notice or curtailed. Employers will have to provide reasonable notice of shifts, but what is ‘reasonable’ may well vary depending on specific circumstances.

Even though zero-hours contracts are not abolished as such, the changes are likely to be problematic for employers that make extensive use of seasonal workers.

Newsletter Apr/May 2026
Newsletter Apr/May 2026
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