A New ERA: The Biggest Employment Law Reforms in Decades Now in Force
The Employment Rights Act 2025 has officially come into force, introducing some of the most significant changes to UK employment law in decades. From 6 April 2026, employers across the UK must comply with wide-ranging reforms affecting family leave, statutory sick pay, workplace protections, redundancy consultation, and employee rights.
Businesses are being urged to review their policies, employment contracts, and HR procedures to ensure compliance with the new legal framework.
Organisations are encouraged to share this information with their members and networks to help employers understand and prepare for the changes.
Key Employment Law Changes Now in Effect
Paternity Leave
Eligibility for paternity leave is now a day-one employment right. Employees must:
- Have or expect responsibility for the child’s upbringing
- Be the biological father or the mother’s partner
- Be married to, in a civil partnership with, or cohabiting with the child’s mother or adopter
Statutory Paternity Pay eligibility remains unchanged, requiring 26 weeks’ continuous service prior to the qualifying week.
Bereaved Partner’s Paternity Leave
A new day-one right allows bereaved fathers and partners to extend paternity leave within the first 52 weeks of a child’s life following the death of the child’s mother or primary adopter. The right applies to all partners, including same-sex couples, civil partners, and surrogacy arrangements.
Statutory Sick Pay Reform
Statutory Sick Pay (SSP) now:
- Applies from the first day of sickness absence
- Removes the Lower Earnings Limit eligibility threshold
- Provides payment at either the flat rate (£123.25) or 80% of average weekly earnings where applicable
Parental Leave
Eligible employees can now access parental leave from day one of employment, replacing the previous requirement of one year’s continuous service.
Collective Consultation in Redundancy
Protective awards for failing to comply with collective redundancy consultation rules (where 20 or more redundancies occur) have doubled from 90 days’ to 180 days’ gross pay per employee.
Whistleblowing Protections Extended
Workers reporting sexual harassment now receive enhanced protection under whistleblowing legislation, including safeguards against detriment and unfair dismissal. Employers should review whistleblowing policies and manager training accordingly.
Creation of the Fair Work Agency
From 7 April 2026, the new Fair Work Agency will centralise enforcement of key employment rights, including:
- National Minimum Wage enforcement
- Agency worker protections
- Labour exploitation investigations
- Civil penalties for non-compliance
The agency will expand its remit over time, including oversight of holiday pay compliance.
Annual Leave Record-Keeping
Employers must now retain detailed annual leave and holiday pay records for six years, including:
- Ordinary and additional leave taken
- Carried-forward leave
- Holiday pay calculations
- Payments made in lieu of leave
Further government guidance is expected.
Supporting Employers Through the Transition
To help businesses remain compliant, Quest is offering a free Employment Rights Act compliance review, allowing employers to speak with a Business Support Manager who will assess current policies and highlight required updates.
In addition, employers can access:
- A practical implementation timeline outlining upcoming ERA reforms through to 2027
- An on-demand webinar explaining the Employment Rights Act 2025 and its practical implications
