The Employment Rights Act 2025 - Changes to Sick Pay, Paternity Leave and more
The Employment Rights Bill received Royal Assent in December 2025 and is now the Employment Rights Act 2025. Below, we have highlighted the main changes coming over the next two years. The most imminent changes are to Statutory Sick Pay, Parental Leave and Trade Unions. Changes to zero-hour contracts and late shift notice payments aren’t expected until 2027.
Changes confirmed for April 2026
Statutory Sick Pay - Workers will have a right to Statutory Sick Pay (SSP) from day one of sickness, rather than day four as it is currently. Also, SSP will become a right from day one in a job. The lower earnings limit for SSP will be removed – currently, workers must earn a minimum of £125 a week to be eligible for Statutory Sick Pay.
Paternity Leave becomes a day-one right. Removing the 26 weeks’ service requirement previously in place. Unpaid Paternity Leave also becomes a day-one right, whereas currently there is a one-year service requirement.
Trade Unions - Simplifying how a trade union can gain recognition in a workplace and allowing trade union members to vote electronically.
Fair Work Agency
The Fair Work Agency will be established in April 2026 to enforce the new laws. The goal is for this to be a place where workers and employers can turn to for help with the new laws. The FWA will aim to resolve issues and support employers in complying with the changes. However, it will also have powers to investigate and take action against businesses that flout the law.
Changes confirmed for October 2026
Trade Union Updates - Duty to inform workers of their right to join a trade union. Along with updated rules on a trade union's right of access to the workplace and a new right to time off for union equality representatives to carry out their duties.
Tipping Policies - Employers will need to consult with workers or their representatives before creating a tipping policy. They must then provide an anonymised summary of feedback from that consultation to all affected workers. Employers must update their tipping policy every 3 years and again consult workers.
Fire and Rehire - Dismissing someone and then rehiring them on worse terms and conditions will become an automatically unfair dismissal in most cases.
Harassment Law -Employers will be liable for harassment from third parties. Employers will need to take 'all reasonable steps' to prevent sexual harassment.
Tribunal Claims - Time limits for making a claim to an employment tribunal will increase to 6 months from 3 months.
Industrial Action - Workers taking part in industrial action will be protected against detriment, in addition to unfair dismissal.
Adult Social Care - There will be a new negotiating body for adult social care. This is part of a wider project on Social Care Negotiating Bodies & Fair Pay Agreements.
Employment Rights Changes Proposed for 2027
Zero-Hour Contracts - Workers on zero-hour or low-hour contracts will have the right to a guaranteed hours contract which reflects the hours they regularly work. This will be based on a set reference period, which is likely to be 12 weeks. However, the reference period and definition of ‘low-hours’ will be set out in future regulations after an initial consultation period. This does not mean the end of zero-hour contracts. Many employees prefer a zero-hour contract and can still opt to have one. This new law will just mean that they get to choose whether they have a zero-hour contract or a guaranteed hours contract.
Shift Change Notice - The act will also give zero-hour and low-hours contract workers the right to reasonable notice of changes to shifts or working hours.
Cancelled Shift Compensation - Workers will also have a right to compensation that is proportionate to the notice given for any shifts cancelled or curtailed.
Bereavement Leave - Introduction of a day-one right to at least one week of bereavement leave for employees.
Employment Rights Act 2025 Factsheet
The act brings significant changes around Trade Unions, with some measures coming as soon as 18 February 2026. For a comprehensive list of the upcoming changes in each area, take a look at the Employment Rights Act 2025 Factsheets.