Law changes from Employment Rights Bill now live, as of April 6th 2026
Many of the changes stipulated with the Employment Rights Act 2025 have come into force as of April 6th 2026. The Employment Rights Bill will have a staggard effect, changes occurring in July 2026, October 2026 and finally January 2027.
Businesses should have already taken steps to ensure they are compliant with the new laws, as well as prepare for the upcoming changes later this year.
At Romero Insurance, we provided a whitepaper which detailed all the changes stipulated in the Employment Rights Act, which is available to download.
Previously, Lewis Jackson, Senior Claims Handler at Romero Insurance, walked us through the implications of the Employment Rights Bill for businesses in regards to insurance claims. See Lewis’ analysis of the Employment Rights Bill’s impact on businesses here.
Why is staying updated with the Employment Rights Bill important?
“The Employment Rights Act 2025 represents a fundamental shift in the balance of employment risk, moving towards earlier employee protection, higher compensation exposure, and significantly stronger enforcement. For businesses, the combination of day-one rights, extended tribunal deadlines, and uncapped compensation creates a materially higher likelihood of claims—both in volume and value—while the Fair Work Agency introduces a more proactive and data-driven enforcement environment. Importantly, much of the risk arises not from deliberate non-compliance, but from technical errors in payroll, process, or documentation, meaning even well-run organisations are exposed.”
– Lewis Jackson, Senior Claims Handler at Romero Insurance
What are the main changes as of April 2026, stipulated in the Employment Rights Bill?
The main changes that will come into effect first involve sick pay, paternity leave, parental leave, redundancy and bereavement leave:
As of April 6th 2026: –
- Statutory Sick Pay Changes – Statutory Sick Pay will be available from the first day of sickness, rather than from day four, and from the very start of employment. SSP will be paid at 80% of an employee’s normal weekly earnings, or the current statutory rate whichever is lower
- Paternity Leave – Employees will be entitled to paternity leave from their first day of employment, removing the need to complete 26 weeks of service. Employees will be allowed to take paternity leave even after taking a period of Shared Parental Leave and pay.
- Parental Leave – Employees will be entitled to unpaid parental leave from their first day of employment, removing the need to complete 1 year of service.
- Redundancy – The maximum period of the collective redundancy protective award will be doubled from the current 90 days to 180 days.
- Bereavement Leave – A new right to bereaved partner’s paternity leave will be introduced, expected to last up to 52 weeks and conclude on the child’s first birthday.
- Fair Work Agency – Launch of The Fair Work Agency which will act as a central hub for employment rights enforcement.
What is the Fair Work Agency?
The Fair Work Agency is the new home for employment rights enforcement operatives and mandates. It is designed to streamline HR support for both workers and employers.
The agency will have the ability to inspect workplaces and require employers to evidence compliance with employment law. The agency has the ability to issue penalties, such as if found that employers have underpaid workers.
In light of the Fair Work Agency, businesses should take proactive steps to ensure full compliance with updated employment laws. The latest versions of contracts, handbooks, and policies will need to be implemented, and conduct a HR audit to access the capability and correctness of procedures, while implementing any recommendations. Businesses should review payroll, double checking the correct minimum wage, holiday pay or overtime is being paid. Record-keeping must be deliberate and forthright, ensuring contracts, wages, hours and holidays are all accounted for.
What other aspects of the Employment Rights Bill will come into effect this year?
Lewis Jackson breaks down the upcoming changes which will come into effect later in the year and into 2027:
- July 2026: Although changes to the Unfair Dismissal rights will be live in January 2027, employers should note that any employee with at least six months’ service by that date will gain the right to bring an unfair dismissal claim. This means that individuals employed on or before July 1st 2026 will qualify to claim from January 1st 2027, as they will meet the revised six-month threshold.
- October 2026: Employment tribunal time limits extended from 3 to 6 months. Further harassment prevention duties expected
- January 2027: Unfair dismissal qualifying period reduced to 6 months. Removal of compensation cap for unfair dismissal. Fire and rehire restrictions has now been delayed to 2027.
- 2027 and Beyond: New rights for zero-hours and low-hours workers, including guaranteed hours and shift protections. Increased whistleblowing protections. Continued consultation on flexible working, agency workers, and enforcement