In January, Natasha at Chamber member Parfitt Cresswell wrote an article on the upcoming changes to employment law ‘New year, New Employment Rights Act: What Employers Need to Know’. The changes are being rolled out gradually and throughout the year, they will be sharing regular updates on the changes being introduced on key dates. This article starts with the immediate changes employers need to be aware of that are coming into effect from 6 April 2026.
- Statutory Sick Pay (SSP)
SSP will need to be paid from the first day of any sickness absence. The current 3 day waiting period will therefore be removed. SSP will also be paid to all staff, regardless of their level of earnings.
As a result of these changes, employers may see an increase in staff taking more ad hoc days off. There will no longer be any financial detriment to staff for taking a few days off sick. That said, the rate of SSP remains relatively low (in comparison to an individual’s usual salary) and for those employers who may already offer sick pay schemes over and above SSP, the financial impact may be less.
Actions for Employers
- Review contracts and sickness absence policies and update where necessary
- Strengthen sickness absence reporting procedures and notification requirements
- Ensure line managers are aware of the changes
- Consistently undertake return to work interviews and document reasons for absence
- Strengthen sickness absence monitoring tools and take action where concerns arise
- Parental Leave
Employees will be entitled to Paternity Leave and Unpaid Parental Leave from the first day of employment. The current requirement to have worked for an employer for a minimum of 26 weeks to qualify for Paternity Leave will therefore be removed. The requirement to have worked for an employer for a minimum of 1 year to qualify for Unpaid Parental Leave will also be removed.
Actions for Employers
- Review contracts and family friendly policies and update where necessary
- Ensure line managers are aware of the changes
- Make staff aware of the changes and the notification required to take such leave
- Collective redundancy consultation
Currently, where more than 20 employees are at risk of redundancy, employers have an obligation to undertake a collective consultation process regarding proposed redundancies. If the employer fails to follow this consultation process, employees can claim a ‘protective award’ which equates to 90 days’ pay (per employee).
This award is being doubled to 180 days’ pay, per employee, therefore the financial penalty for employers who do not follow the process has significantly increased.
Actions for Employers
- Seek early legal advice in relation to any plans to make redundancies, particularly where more than 20 staff are likely to be affected.
- Sexual Harassment
Raising allegations of sexual harassment will be classed as ‘protected disclosures’ and will therefore be protected under whistleblowing legislation. Employees who bring whistleblowing claims in respect of suffering a detriment or dismissal are not required to have any minimum length of service with an employer and compensation awarded is uncapped.
Actions for Employers
- Review employment contracts, grievance and whistleblowing policies and update where necessary
- Remind staff of their responsibilities towards preventing sexual harassment in the workplace and encourage staff to speak up if they have any concerns
- Take any allegations of sexual harassment seriously and follow the appropriate procedures to respond to allegations raised
- Trade Unions
The Trade Union recognition process in the UK will be simplified. For example, there will be a new statutory right for unions to access workplaces and communicate with staff (in person and digitally), a reduced membership threshold to gain recognition and restrictions on employers to interfere with the recognition of unions.
Actions for Employers
- Prepare for an increased number of staff becoming union members and associated additional legal protections for union members
- Prepare for the potential for increased disputes over pay, hours and working conditions to arise
- Review strategies now and consider voluntary recognition agreements
- The Fair Work Agency
Existing enforcement bodies will be brought together into one Fair Work Agency who will be responsible for the enforcement of breaches in respect of national minimum wage, holiday pay and statutory sick pay.
Actions for Employers
- Expect greater scrutiny and stronger enforcement action for breaches
- Assess level of compliance with minimum pay requirements
- Tighten up record keeping processes to evidence compliance