Employment Rights Bill 2025
What are the updates now that April 2026 is on the horizon?
Reading up on the Employment Rights Act 2025. This Act, which will begin to roll out in April 2026, promises significant changes that will impact businesses across multiple fronts:
Key Changes Taking Effect in April 2026:
- Statutory Sick Pay (SSP) will be payable from day one, and the Lower Earnings Limit (LEL) will be removed, affecting many low-paid and zero-hours workers.
- Day-One Rights for paternity leave and unpaid parental leave, significantly impacting new starters.
- Penalties Doubling for failing to carry out proper collective redundancy consultation.
- The Fair Work Agency launches, armed with the power to inspect records and issue fines for holiday pay or SSP underpayments.
Key Changes In October 2026: - Stronger Harassment Protections: Including third-party harassment, with employers required to show they took “all reasonable steps” to prevent it.
- Extended Tribunal Time Limits: From three months to six months for filing claims.
Preparing Your Business:
- Update Policies & Contracts: Ensure absence policies, family leave policies, and employment contracts are revised to reflect the new day-one rights and SSP changes.
- Revamp Payroll Systems: To handle SSP from day one and include variable pay components in holiday pay calculations.
- Train Your Managers: Make sure line managers are up to speed on new policies and financial implications.
- Mitigate Risk: Review and enhance harassment prevention measures. This includes training, risk assessments, updated policies, and clear reporting.
- Keep Detailed Records: Employers must maintain detailed records for six years to avoid penalties.
- Legal Advice: Consider seeking advice for addressing underperformance issues before the changes come into effect, especially concerning unfair dismissal.
These changes, although challenging, offer a great opportunity for businesses to foster a fairer and more supportive work environment but will it lead to systemic abuse of the system? At a time when businesses are struggling with higher employment costs, will this bill put even more pressure on or is it a fair change to an outdated system?
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