April of this year brought the first wave of these changes to employment law, with new obligations and protections introduced across areas from Statutory Sick Pay (SSP) to whistleblowing procedures. The changes have practical implications for how you manage your people, with the penalties for getting things wrong increasing. 

Furthermore, this is only the beginning. Further significant employment law changes are due to come into force in October 2026, with additional reforms expected from April 2027 and beyond. Understanding what has changed and what is still to come will be essential for keeping policies and procedures up to date and avoiding what could be very costly mistakes.

Before the next wave of reforms beds in, our employment law solicitors have put together this guide to the changes already in place from April 2026. There are five key changes to be mindful of, which we have outlined below along with practical tips and next steps for those who have not yet adapted.

1. Statutory Sick Pay Reform

One of the most significant employment law changes introduced by the Employment Rights Act in April was the removal of the waiting period for Statutory Sick Pay (SSP). 

Previously, SSP was generally not payable for the first three qualifying days of an employee’s sickness absence, and there was a lower earnings limit. Now, eligible employees can receive SSP from the first day of sickness absence, and there is no lower earnings limit. 

The amount payable is the lower of the standard weekly SSP rate or 80% of the employee’s average weekly earnings. From 6th April 2026, the standard weekly SSP rate is £123.25, which means that many employees who previously fell below the earnings threshold will now qualify.

These sick pay reforms have significant implications for employers, with the practical impact likely to be felt most clearly through the cost and management of short-term sickness absence. As a result, effective absence management is perhaps more important than ever. 

In light of these employment changes, you should:

• Proactively manage patterns of absence
• Ensure return-to-work meetings are conducted as appropriate
• Address any attendance concerns at an early stage
• Manage excessive absences through appropriate absence or capability procedures

You may also need to make changes to your actual absence policies, ensuring that references to the old waiting period and earnings threshold are removed. It may also be appropriate to review your own sick pay schemes and consider whether any changes are necessary in light of these new rules.

2. Paternity & Parental Leave Rights Have Changed

Another key reform introduced by the Employment Rights Act in April 2026 was the change to family leave entitlements. From April 2026, paternity leave became a Day One right. In addition, employees no longer need to have completed 26 weeks’ service before becoming entitled to paternity leave.

Unpaid parental leave has also become available from Day One and there is a new entitlement for bereaved fathers and partners. Where the mother or primary adopter dies during the first year following the child’s birth or placement, the surviving father or partner may be entitled to up to 52 weeks of paternity leave. 

Understanding these changes is key, particularly when recruiting and onboarding new staff. Length of service can no longer be relied upon when determining whether a new employee has certain family leave rights, and employment contracts and policies should subsequently reflect the fact that employees can become entitled to these rights from day one.

To ensure that you are abiding by these changes to paternity and parental leave, we would recommend that you:

• Update onboarding materials 
• Review template contracts and employee handbooks, ensuring that they reflect Day One entitlements
• Ensure employees know how to request and take family leave

3. Penalties For Getting Collective Redundancy Wrong Have Doubled

There have long been clear rules in place regarding the requirements for collective redundancy consultation. These rules have not changed since April 2026’s Employment Rights Act reforms; however, the penalties for failing to comply with the requirements have doubled.

Where an employer proposes to make 20 or more employees redundant within a rolling 90-day period, it must consult with a recognised trade union or elected employee representative. Historically, the maximum protective award for failing to comply with these requirements has been 90 days’ pay for each affected employee. As of April 2026, the maximum protective award is now 180 days’ pay for each affected employee.

Undoubtedly, these penalties could have substantial financial consequences for you as an employer, so it is important to be well-versed in the rules and changes if you are carrying out a larger-scale redundancy process. Similarly, you must also be careful when assessing whether the collective redundancy rules apply. A series of smaller redundancies could fall within the rules if, when considered together, 20 or more redundancies are proposed within the relevant 90-day period. 

Please note that this position may change again in 2027, when the threshold is anticipated to take the employer’s overall workforce into account. Please do not hesitate to get in touch with our expert employment solicitors if you are not sure which rules may apply to you.

4. Enhanced Sexual Harassment & Whistleblowing Protection

You also need to be aware that employees who disclose sexual harassment may now benefit from whistleblower protection where they reasonably believe that their disclosure is in the public interest. 

The action point for employers here is clear: managers must be able to recognise when an employee’s complaint may amount to whistleblowing and not automatically treat it as a standard grievance. It would be suitable to use these April 2026 changes as an opportunity to refresh managers’ training on potential whistleblowing complaints and ensure that complaints relating to sexual harassment are taken seriously and investigated properly.

Furthermore, all whistleblowing policies and procedures need to be updated to ensure that sexual harassment is specifically addressed within them. 

5. Introduction Of The Fair Work Agency

The final major employment law change introduced in April 2026 as part of the Employment Rights Act was the introduction of the new Fair Work Agency. Despite receiving minimal media coverage, this change is actually one of the most significant reforms and will continue to evolve over the coming months and years.

The Fair Work Agency is a new enforcement body designed to bring together a number of existing employment rights enforcement functions. It will be responsible for enforcing rights related to the National Minimum Wage, Statutory Sick Pay, and holiday pay, with significant penalties imposed on employers who underpay in these areas. 

You should be particularly aware of how the new rules impact holiday pay, as employers are now entitled to retain holiday records for six years to demonstrate compliance. The Fair Work Agency has powers to inspect workplaces and require these documents to be presented; those who cannot provide them could be given a penalty of up to 200% of the amount owed, capped at £20,000 per worker. As a result, accurate record-keeping is critical, and you need to be able to demonstrate how much holiday an employee was entitled to, how that entitlement was calculated, and what payments were made.

Holiday pay issues can often arise in one of a few common areas, so being mindful of the following is key:

• Employees carrying annual leave over between holiday years
• Sickness during a holiday
• Changes to previously approved holiday
• Employees joining part-way through a holiday year
• Part-time, irregular hours or seasonal workers
• Overtime, commission, bonuses or allowances that must be factored into holiday pay calculations. 

For a more detailed look at the Agency’s new role and enforcement powers, take a look at our complete guide to the Fair Work Agency. 

What Happens Next?

The April 2026 changes are only the first stage of the Employment Rights Act reforms, with further significant changes due to come into force in October 2026, April 2027, and beyond. 

It is important that you both consider the wider implications of this round of reforms now and keep up to date with changing requirements and show a willingness to review and update your policies and procedures as different reforms come into force. 

At Kitson Boyce, our expert employment law solicitors in Devon are on hand to help you through the changes and stay on top of what is one of the most significant changes to employment law in decades. Whether you need to better understand what has and hasn’t changed, or review your employment contracts and policies in light of the Employment Rights Act, our expert team can help.

For more information, please contact a member of the team via the contact form on this page, by emailing [email protected], or by calling 01803 202020.