Summary
The Employment Rights Act 2025 has now started taking effect, with several major changes already active from April 2026.
These updates strengthen rights around sick pay, leave, job security, and predictable working hours. More changes, including a shorter qualifying period for unfair dismissal, will come into force in 2027.
This article explains the key rules that are already in effect today, and what both employees and businesses should be doing now.
Main Points at a Glance
- New rules under the Employment Rights Act are now live from April 2026.
- Sick pay starts from the first day of illness, and more workers qualify.
- Paternity leave and unpaid parental leave are now day-one rights.
- Zero-hour workers gain rights to predictable hours and cancellation pay.
- Stronger protections now apply in redundancy and whistleblowing cases.
- Unfair dismissal qualifying period drops to six months in January 2027.
- A new Fair Work Agency is now operating and enforcing workplace rights.
What’s Changed Now the Employment Rights Act Has Come Into Force
1.Sick Pay Now Starts on Day One
From April 2026, Statutory Sick Pay (SSP) now begins immediately, with no waiting period.
More workers qualify because the old earnings threshold has been removed.
What this means:
- Employees: faster financial support when ill.
- Businesses: sickness policies and payroll systems must already reflect these changes.
2.Family Leave Is Now a Day-One Right
Paternity leave and unpaid parental leave are now available from the first day of employment.
This makes it easier for new starters to take leave when they need it.
Businesses must ensure HR teams and managers understand and apply the updated entitlement rules.
3.Stronger Redundancy and Whistleblowing Protection
As of April 2026, employers face higher penalties for failing to properly consult staff during collective redundancy processes.
Whistleblowing protections have also expanded, including cases involving sexual harassment, offering employees greater safety when reporting concerns.
4.Zero-Hour Workers Now Have Predictable Working Rights
Workers on zero-hour or irregular contracts now have new rights, including the ability to:
- Request more predictable working patterns
- Receive proper notice of shift changes
- Receive compensation if shifts are cancelled at short notice
This gives workers more stability and requires employers to improve rota planning.
5.Unfair Dismissal Changes Are Coming Soon (January 2027)
Although not yet active, employers must prepare now.
From 1 January 2027, the qualifying period for unfair dismissal will drop from two years to six months.
This will significantly increase the number of employees who can bring a claim.
For employees: easier access to justice.
For employers: dismissals must be fair, reasonable, and well-documented from the start.
6.Fire-and-Rehire Restrictions Are Already Tightening
Using “fire and rehire” to push through contract changes is now highly restricted.
Unless there is a genuine financial necessity, dismissals used to impose new terms may be viewed as automatically unfair.
Businesses must use proper consultation processes and avoid high-risk tactics.
7.The Fair Work Agency Is Now Active
The newly formed Fair Work Agency began operating in April 2026.
It investigates complaints, enforces rights, and can issue penalties for non-compliance.
For businesses, this means greater scrutiny.
For employees, it means clearer routes to support and enforcement.
FAQs
Yes. The first wave of changes took effect in April 2026, and further updates will roll out through 2027.
Update contracts, staff handbooks, sickness policies, scheduling processes, and dismissal procedures. Training for managers is strongly recommended.
Yes. Zero-hour and variable-hours workers now have stronger rights to predictable scheduling and compensation for late cancellations.
On 1 January 2027, when the qualifying period drops to six months.
They can seek legal advice, raise a grievance, or ask the Fair Work Agency to investigate.