Employment Rights Act 2025 — Further provisions in force
Tuesday 14th April 2026
From April 2026, further provisions of the Employment Rights Act 2025 (“ERA 2025”) will come into force. The ERA 2025 is intended to modernise employment law by strengthening worker protections, and the changes taking effect this quarter are substantial. Retailers should review their employment policies, contracts, and HR procedures to ensure compliance with the following:
- Parental and paternity leave: Unpaid parental leave and paternity leave will become day-one rights, removing the existing qualifying period of continuous employment. Retailers should update their leave policies and employee handbooks accordingly.
- Statutory sick pay (“SSP”): SSP will become a day-one entitlement, and the lower earnings limit currently required to qualify for SSP will be abolished. This is a particularly significant change for the retail sector, where a substantial proportion of the workforce may previously have fallen below the earnings threshold.
- Collective redundancy; protective awards: The maximum protective award for failure to comply with the obligation to consult during a collective redundancy process will double. The maximum award will now be equivalent to 180 days’ pay per affected employee (increased from the current 90-day cap). Retailers contemplating restructuring or redundancy exercises should ensure that their consultation processes are robust.
- Trade union recognition: Changes to the statutory trade union recognition framework will take effect. Retailers should be aware of the revised procedures and thresholds applicable to recognition requests.
- Whistleblowing: The scope of protected disclosures will be extended to include disclosures relating to sexual harassment. Employers should update their whistleblowing policies and reporting procedures.
- Fair Work Agency: The Government will establish a new Fair Work Agency with responsibility for supporting the enforcement of workers’ rights. Retailers should monitor developments regarding the Agency’s remit and enforcement powers.
Full details can be found in our Employment Rights Act briefing here.
