The April 2026 Watershed: Navigating the First Wave of the Employment Rights Act 2025
The wait is over. On 6 April 2026, the first major provisions of the Employment Rights Act 2025 come into force. For the past year, the "Plan to Make Work Pay" has been a boardroom talking point; now, it becomes a legal reality.
While the reduction of the unfair dismissal qualifying period to six months is set for January 2027, the April 2026 changes introduce immediate "Day One" liabilities that will catch unprepared employers off-guard.
1. The Death of the 'Waiting Period': Statutory Sick Pay (SSP)
Perhaps the most significant operational shift is the reform of SSP. From 6 April:
Day-One Rights: The three-day "waiting period" is abolished. SSP is now payable from the very first day of sickness.
Removal of the Lower Earnings Limit (LEL): Previously, workers had to earn at least £123 per week to qualify. This threshold is gone. Even your lowest-paid part-time staff and apprentices now qualify for statutory support.
The 80% Rule: For those earning below the standard SSP rate (increasing to £123.25/week), sick pay will be capped at 80% of their average earnings.
Strategic Impact: SMEs must brace for increased short-term absence costs and a significant administrative burden in payroll.
2. Family Leave: The New 'Day One' Reality
Eligibility for Paternity Leave and Unpaid Parental Leave will no longer require a qualifying period of service.
An employee hired on Monday could technically request paternity leave on Tuesday.
Bereaved Partner’s Paternity Leave: A new, vital right grants up to 52 weeks of unpaid leave to a father or partner if the mother or primary adopter dies within the first year.
Strategic Impact: Staff handbooks and "onboarding" policies must be rewritten immediately. Any mention of a "26-week" or "1-year" service requirement for these leaves is now legally obsolete.
3. Flexible Working: A Procedural Risk, Not a Policy Update
Flexible working is now firmly established as a day-one right, but many organisations are still treating it as a legacy policy issue. That is a mistake.
The legal obligation under the Employment Relations (Flexible Working) Act (now fully embedded in the 2025 framework) is not simply to respond. It is to consult properly, rely on legitimate business grounds, and demonstrate reasoned decision-making.
The Nexus View: The real exposure sits in discrimination risk. Poorly handled requests—especially those involving childcare or health—can quickly morph into indirect sex discrimination or disability discrimination claims, where compensation is uncapped. We are seeing in practice that the breakdown is rarely a lack of legal knowledge; it is a lack of line manager capability and procedural inconsistency. That is where claims are being created.
4. Redundancy Protection: Smaller Change, Bigger Consequences
Enhanced redundancy protection for pregnant employees and those returning from family leave (including maternity, adoption, and shared parental leave) is no longer a "best practice" suggestion—it is a high-risk compliance mandate.
On the surface, this is a narrow obligation: prioritise affected employees for suitable alternative vacancies. In reality, it fundamentally alters how redundancy pools and redeployment exercises must be approached.
The Nexus View: Failure to properly identify and offer suitable roles is not just procedurally unfair; it opens the door to Automatic Unfair Dismissal. The margin for error here is microscopic. Employers who treat this as a "documentation exercise" rather than a structured, forensic redeployment process are dangerously exposed.
5. Sexual Harassment as Whistleblowing
Under the new Act, a disclosure of sexual harassment at work will be formally treated as a Protected Disclosure. This elevates these complaints to the level of whistleblowing, granting employees immediate protection from detriment and uncapped compensation if handled incorrectly.
The Nexus View: Action Required
The ERA 2025 represents a shift from "Employer Discretion" to "Worker Security." The businesses that will thrive are those that move from a reactive "HR-as-admin" model to a proactive "Strategic ER" model.
The next three weeks are critical. You must audit your payroll systems, update your absence management triggers, and—most importantly—train your line managers. The Fair Work Agency will not accept "we didn't know the law had changed" as a defence.
Is Your Business ERA-Compliant?
The April 2026 deadline is non-negotiable. At Nexus Employment Consultancy, we provide the senior-level audit and policy overhauls required to insulate your business from the heightened risks of the 2025 Act.
