The ERA era: The changes implemented so far

by Laura Merrylees, Susie Munro, Zeba Sayed and Robert Shore

The Employment Rights Bill, described as “the greatest shift in employment legislation in decades,” received Royal Assent on 18 December 2025 and passed into law as the Employment Rights Act 2025 (ERA). That doesn’t mean all the workplace law reforms it contains came into force immediately, however. Here we set out the changes that have been enacted so far — and what HR should do about them.

The ERA is a wide-ranging programme of employment law reforms, touching on everything from flexible working to unfair dismissal, and secondary legislation is generally required to bring the different strands of legislation into force.

The February 2026 changes

In February 2026 the Government updated its timeline setting out the implementation dates for individual measures, and on 18 February phase one of the trade union law reforms came into effect. This repealed much of the Trade Union Act 2016, including:

• Reforming industrial action ballots
• Removing 40% support threshold for industrial action in “important public services”
• Extending the mandate for industrial action from six to 12 months
• Removing conditions that were introduced in May 2024 to the check-off process in the public sector
• Extending protection against dismissal for taking industrial action to the length of the strike (previously 12 weeks)

The April 2026 changes

Extended eligibility for statutory sick pay (SSP)

From 6 April 2026, the Employment Rights Act 2025 makes SSP available to all workers, by removing:

• The three-day waiting period, so SSP is payable from the first day of a period of sickness
• The requirement to earn at least the lower earnings limit

Employees are now entitled to the current rate of SSP, or 80% of their average weekly earnings if that is lower.

What should HR do now?

• Review your budget: If your organisation currently pays only SSP, prepare for an increase in costs resulting from more employees being eligible, and payment being required for the first few days of absence.
• Audit current practice: Prepare for a potential increase in short-term absence (and decrease in presenteeism). Ensure that current absence management processes are effective and provide training for line managers where necessary.
• Review benefit provision: Weigh up the potential positive impact on recruitment and retention of introducing an enhanced contractual sick pay scheme. If you already enhance sick pay, consider whether your scheme remains an attractive benefit, or whether further enhancement is an option.

Establishment of the Fair Work Agency

On 7 April 2026 the Employment Rights Act 2025 created a single, consolidated body to monitor and enforce core employment rights: the Fair Work Agency (FWA). The FWA incorporates certain existing agencies and is responsible for enforcing rights including the national minimum wage, statutory sick pay and holiday pay.

By consolidating the advice, oversight and enforcement functions into a single body, the FWA aims to:

• Simplify access to support
• Streamline enforcement
• Ensure that employment rights are protected more effectively and efficiently

This aligns with the Government’s broader goal of addressing “one-sided flexibility” and strengthening protections for zero hours and gig workers, as well as other non-traditional workers.

What should HR do now?

• Audit pay practices: Review minimum wage and holiday pay policies to ensure compliance, particularly for irregular and zero hours workers
• Strengthen supply chain oversight: Increase due diligence on contractors, umbrella companies and outsourced services
• Improve documentation: Ensure that your processes allow you to maintain clear records of pay, hours worked, holiday entitlements, right-to-work checks and contracts
• Train line managers: Equip managers who work with contingent staff to understand their responsibilities and avoid exposing the organisation to potential risks
• Enhance whistleblowing channels: Foster a culture where employees feel safe reporting concerns

Statutory paternity and ordinary parental leave to become day-one employment rights

From 6 April 2026, the Employment Rights Act 2025 removes the qualifying periods for paternity leave (currently 26 weeks) and ordinary parental leave (currently one year), making them both day-one rights. It also removes the restriction on employees taking paternity leave and pay after they have taken shared parental leave and pay.

What should HR do now?

• Audit existing family-leave policies: Consider what changes will need to be made to your existing family-leave policies and procedures to reflect the expanded entitlement.
• Stay informed: The Government has said that it intends to conduct a wider review of the parental leave system. The introduction of these day-one rights is likely to be just the beginning of a wider shift in working practices.

Reform of trade union laws: Phase two

The Employment Rights Act 2025 reforms trade union legislation. The following reforms took effect on 6 April 2026:

• Simplification of the union recognition process, including by:
  • Removing the requirement for majority support at the application stage
  • Removing the 40% support threshold
  • Providing the Government with the power to reduce the requirement from 10% membership at the application stage to a level not lower than 2% (the change to the threshold itself is subject to secondary legislation, following consultation)
• A period of 20 working days to agree union access during a statutory recognition process

What should HR do now?

• Review current practices around employee relations: In non-unionised organisations, review whether effective arrangements are in place for consulting and engaging with staff (eg staff councils). Consider introducing or improving processes to enhance employee relations and engagement.
• Cultivate good relations with staff and unions: In unionised organisations, adopt best practice and cultivate constructive relationships with both unions and staff to avoid the risk of industrial action. Ensure current dispute resolution procedures are effective.
• Stay informed: Look out for the Government’s response to its recent Make Work Pay: recognition code of practice and e-balloting unfair practices consultation.

Protective award to double

From 6 April 2026, the Employment Rights Act 2025 increases the maximum compensation that a tribunal can award where an employer fails to comply with their collective redundancy consultation obligations (known as the protective award), doubling it from 90 to 180 days’ pay.

What should HR do now?

• Audit current practices: Assess current approach to collective consultation obligations for any shortcomings given the significant financial penalties at stake.
• Plan ahead: Ensure that systems for reviewing thresholds and triggers for collective consultation are up to date.
• Training: Provide relevant staff with refresher training on collective consultation obligations.

Sexual harassment added to whistleblowing legislation

From 6 April 2026, the Employment Rights Act 2025 amends the whistleblowing provisions so that complaints of sexual harassment are treated as protected disclosures.

What should HR do now?

• Audit current practices: Assess current approach to assessing, managing and preventing the risk of harassment, including from third parties.
• Update policies: Ensure whistleblowing policy includes sexual harassment under categories of wrongdoing.

New right to bereaved partner’s paternity leave

From 6 April 2026, the Bereaved Partner’s Paternity Leave Regulations 2026 enables a bereaved employee to take up to 52 weeks’ leave during the first year of their child’s life or the year immediately after the child’s adoption. Parents who take extended paternity leave also qualify for keeping-in-touch days and enhanced protection against redundancy.

What should HR do now?

• Audit existing family-leave policies: Consider how this new right might be integrated alongside existing family-leave policies.

Holiday leave and pay records

From 6 April 2026, the Employment Rights Act 2025 introduces an obligation on employers to make and retain records that are “adequate to show” that the employer has complied with its statutory annual leave obligations. Employers can choose the manner and format in which they create, maintain and keep records of statutory annual leave and pay, provided that their choice is reasonable. Records will need to be kept for at least six years.

A failure to comply with the duty to keep records will be an offence.

What should HR do now?

• Audit current practices: Assess current approach to recording workers’ annual leave and pay. If records are inadequate, put in place robust record-keeping systems that are up to date.
• Review your workforce and pay practices: Ensure that you are currently meeting your statutory annual leave obligations to all workers (particularly where working patterns are atypical or complex).