The UK workplace is going through one of the most significant shifts in employment law in recent years. Find out more.
The UK workplace is going through one of the most significant shifts in employment law in recent years. A series of reforms linked to the Employment Rights Act 2025 are beginning to take effect throughout 2026, bringing expanded protections for workers and new responsibilities for employers.
These changes aim to improve job security, increase pay for millions of workers, and modernise employment rights to reflect today’s labour market. So what are the changes? Find out below.
• Day-One Rights to Statutory Sick Pay
One of the most notable reforms affects Statutory Sick Pay (SSP). Previously, employees had to wait three “waiting days” before SSP began and also had to earn above a minimum weekly threshold to qualify. From April 2026, SSP becomes a day-one entitlement, meaning workers can receive sick pay from the first day of illness. The earnings threshold that previously prevented some lower-paid workers from qualifying is also being removed. This change significantly expands access to sick pay, particularly benefiting part-time workers and those in lower-income roles.
The weekly SSP rate is also increasing, meaning workers who fall ill will have slightly greater financial protection during periods of absence.
• Day-One Rights for Family Leave
Under previous rules, some forms of leave required a minimum period of employment before eligibility. This year, workers will gain day-one eligibility for paternity leave and unpaid parental leave. This means employees will no longer need to build up months of service before accessing these rights, giving new parents greater flexibility and security when balancing work and family responsibilities.
• Increase to the National Living Wage
Millions of workers will also see their pay rise due to increases in the National Living Wage.
From April 2026, the National Living Wage for workers aged 21 and over rises to £12.71 per hour, with proportional increases for younger age groups as well. These increases are part of the government’s broader strategy to improve living standards and reduce in-work poverty.
• Stronger Protection During Collective Redundancies
Employment law is also tightening protections around large-scale redundancies. Under the new rules introduced in 2026, the penalty for failing to properly consult workers during collective redundancies increases significantly. Compensation for affected employees can now reach up to 180 days’ pay, doubling the previous maximum.
• Changes Affecting Trade Unions and Worker Representation
The reforms also include steps to strengthen trade union activity and workplace representation. Some restrictions introduced under previous legislation are being repealed, with the goal of making it easier for unions to organise and represent workers.
If you are an employer or an employee and want more information on anything we have outlined about, call our experienced team today on 01722 448 448
