Employment Rights Act: what does it mean for your business?

Upgraded employment rights have started to take effect since February 2026

The changes are being implemented gradually over 2026 and 2027, allowing employers time to prepare and providing workers with clear details on their rights.

Whether you need to prepare your business for these shifts or simply want to understand your protections as a worker, it’s important to stay informed and be clear about the upcoming changes.

A central resource for employers and workers: what’s changing?

The Department for Business and Trade (DBT) have launched a new website Department for Business and Trade (DBT) which offers practical guidance and support on the changes that the Employment Rights Act will introduce, and actions employers need to take to stay compliant.

The website provides details of upcoming changes, including several that came into force from April 2026. These include:

• Statutory Sick Pay: No earnings threshold and no three-day waiting period mean more employees will now qualify. This change is likely to increase employer costs and requires updates to payroll processes and policies.
• Day-one family leave: Paternity Leave and Unpaid Parental Leave a right from the first day in a job. Employers will need to ensure policies and onboarding processes reflect these immediate entitlements.
• Bereaved Partner’s Paternity Leave: A new right for time off following the death of a child’s mother or primary adopter. This introduces additional sensitivity and compliance considerations for HR teams managing leave requests.
• Collective redundancy protections: The protective award for non-compliance is being increased from 90 to 180 days’ pay per affected employee.
• Stronger protections for workers who report sexual harassment. Businesses should review reporting procedures and workplace culture to ensure they meet the enhanced expectations.
• A new body called the Fair Work Agency will work to uphold workers’ rights and support businesses with compliance.

Get in touch with us

If you have any further queries regarding the updates to the Employment Rights Act updates, please contact our business services team.