Employment Rights Act 2025 – Employer Compliance Checklist April 2026

This checklist is designed to help employers prepare for the April 2026 changes under the Employment Rights Act 2025.

Day‑one rights to paternity and parental leave – Effective from: April 2026

Unpaid paternity leave and parental leave will become day‑one rights, removing the current service requirements.

Eligibility for Statutory Paternity Pay does not change and will continue to depend on service and earnings thresholds.

What this means for employers

Employees will be entitled to take unpaid family leave from the first day of employment, including during probation periods. This increases the likelihood of leave being taken shortly after joining and highlights the importance of clear communication about leave versus pay entitlements.

Checklist

• Update paternity leave policy to remove service requirements
• Update parental leave policy to remove service requirements
• Clearly distinguish between entitlement to leave and entitlement to statutory pay
• Review probation and onboarding processes to allow for early leave
• Train managers on handling day‑one leave requests
• Update employee handbook and internal guidance

Statutory Sick Pay: payable from day one – Effective from: April 2026

Two key changes will apply to Statutory Sick Pay (SSP):

• SSP will be payable from the first day of sickness absence
• The lower earnings limit will be removed, extending entitlement to lower‑paid workers (with SSP calculated by reference to earnings)

SSP remains a cost met entirely by the employer.

What this means for employers

Short‑term sickness absences will carry an immediate cost. Employers with higher levels of absence or lower‑paid workforces are likely to see an increase in SSP costs, making absence management more financially significant.

Checklist

• Update SSP policy to reflect payment from day one of sickness

Remove references to waiting days from procedures

• Ensure payroll systems correctly trigger SSP from day one
• Budget for increased SSP costs
• Review and strengthen absence management processes
• Communicate changes to managers and payroll teams

Collective redundancy: increased penalties – Effective from: April 2026

While the collective consultation threshold remains unchanged for now, the maximum protective award for failure to consult will double:

• From 90 days’ pay to 180 days’ pay per affected employee

The government also gains powers to extend consultation obligations through future regulations.

What this means for employers

The financial risk of getting collective consultation wrong will increase significantly. Even smaller redundancy exercises may carry substantial exposure where consultation requirements are overlooked or misapplied.

Checklist

• Review redundancy and restructuring policies
• Refresh manager guidance on collective consultation thresholds
• Ensure documentation clearly records redundancy decision‑making
• Review approach to multi‑site redundancies
• Seek legal or HR advice early where consultation obligations may apply

Sexual harassment: whistleblowing protection – Effective from: April 2026

From April 2026, reporting sexual harassment will be treated as a protected whistleblowing disclosure.

Workers who raise concerns will be protected from detriment or dismissal under whistleblowing legislation.

What this means for employers

Complaints involving sexual harassment will attract enhanced legal protection, increasing the importance of handling concerns carefully, consistently and without retaliation.

Checklist

• Update whistleblowing policy to include sexual harassment disclosures
• Review harassment reporting and investigation procedures
• Train managers on protected disclosures and retaliation risks
• Review NDA and settlement agreement templates
• Ensure complaints are handled promptly and consistently

Fair Work Agency: enforcement begins – Effective from: April 2026

A new Fair Work Agency will begin operating, bringing together employment rights enforcement powers.

The Agency will be able to:

• Proactively investigate non‑compliance
• Request records and documentation
• Take enforcement action without an employee complaint

What this means for employers

Employers may face increased scrutiny of compliance across pay, working time, sick pay, holiday entitlement and employment records. The focus will be on demonstrable compliance, not just written policies.

Checklist

• Audit HR and payroll records for accuracy and completeness
• Ensure pay, hours, SSP and holiday records are easily accessible
• Review core employment policies for legal accuracy
• Confirm HR systems can produce records on request
• Train managers on compliance‑critical decisions

Working time and annual leave record‑keeping – Effective from: 2026 onwards

Employers will be required to keep adequate records demonstrating that workers:

• Understand their statutory holiday entitlement
• Have been given the opportunity to take that leave
• Have not been prevented or discouraged from doing so

What this means for employers

The emphasis shifts towards evidence and record‑keeping. Where employers cannot demonstrate compliance, there is an increased risk of holiday carry‑over and claims for unpaid leave.

Checklist

• Review how holiday entitlement is communicated to staff
• Ensure systems accurately track leave taken and balances
• Actively encourage employees to take statutory leave
• Improve record retention and audit trails
• Check HR systems can evidence compliance

 

Employer Compliance Checklist April 2026 Table:

✔	Change	What is changing	Effective
☐	Day‑one paternity leave	Unpaid paternity leave becomes a day‑one right. The current 26‑week service requirement is removed. Eligibility for Statutory Paternity Pay remains unchanged.	April 2026
☐	Day‑one parental leave	Unpaid parental leave becomes a day‑one right. The current one‑year service requirement is removed.	April 2026
☐	Statutory Sick Pay – day one	SSP becomes payable from the first day of sickness absence, rather than from day four.	April 2026
☐	SSP lower earnings limit removed	Lower‑paid workers become eligible for SSP, paid at a rate linked to earnings.	April 2026
☐	Collective redundancy   penalties increase	The maximum protective award for failure to consult doubles from 90 days’ pay to 180 days’ pay per affected employee.	April 2026
☐	Sexual harassment whistleblowing protection	Reporting sexual harassment becomes a protected whistleblowing disclosure, with protection from detriment or dismissal.	April 2026
☐	Fair Work Agency launched	A new enforcement body gains powers to   proactively investigate employment law compliance and request records.	April 2026
☐	Annual leave record‑keeping	Employers must keep records demonstrating that workers understand and can take their statutory holiday entitlement.	From 2026 onwards

 

April 2026 represents the first major implementation phase of the Employment Rights Act 2025. Further reforms will follow in 2027, but employers should ensure they understand the changes taking effect from April 2026 and their impact on cost, risk and workforce planning.

At Kalra Legal Group, we recognise that navigating legislative change can be complex, time‑consuming, and uncertain. Our experienced team advises both employers and employees on the practical impact of employment law reforms, helping businesses remain compliant while protecting their commercial interests, and supporting individuals to understand and assert their rights with confidence.

Whether you are preparing for upcoming changes or responding to issues as they arise, we provide clear, pragmatic advice tailored to your circumstances.

For further guidance, or to discuss how these changes may affect you or your organisation, please contact:

Kalra Legal Group

Email: [email protected]

Website: https://klglaw.co.uk/