Employment Rights Act: what small employers must do now

The Employment Rights Act 2025 is being phased in, and the first wave arrived on 6 April 2026. If you employ staff, some of these changes run straight through your payroll.

Already in force (April 2026)

• Statutory Sick Pay from day one. The three unpaid waiting days have gone, and so has the lower earnings limit. Lower earners get the lower of £123.25 a week or 80% of their average weekly earnings.
• Holiday records for six years. You must keep adequate records of annual leave and holiday pay. Failing to do so is now a criminal offence.
• Day-one family rights. Paternity leave and unpaid parental leave no longer need 26 weeks' service.
• The Fair Work Agency. A new body now enforces minimum wage, holiday pay and SSP.

Coming next

• From October 2026: tribunal time limits for most claims expected to double from three to six months.
• From 2027: a shorter qualifying period for unfair dismissal claims, expected from 1 January 2027.

Dates for later stages may still move, so check before you act.

What to check this month

1. Your payroll software pays SSP from the first day of sickness.
2. Holiday records go back far enough, and you can produce them.
3. Contracts and handbooks reflect the new day-one rights.
4. Probation reviews happen on time ahead of the 2027 dismissal changes.

How BDE can help

Our payroll service keeps SSP, holiday pay and records compliant, and flags changes before they catch you out. For contract wording, we'll point you to an employment law specialist.

This article is general guidance based on the position at the date shown and is not advice for your circumstances. Speak to us before acting.