Beyond the Employment Rights Act – what’s coming into force in April 2026?

The phased implementation of the Employment Rights Act 2025 (ERA) is continuing, with a series of important reforms due to take effect in April 2026. 

This blog post summarises the key changes and signposts the principal implications for employers. 

Key changes taking place on 6 and 7 April 2026:

• Trade Union Recognition (6 April 2026): the principal changes, which will make it easier for trade union recognition applications to succeed, include:
  • giving the government the power to reduce the minimum required percentage of trade union members within a bargaining unit for the Central Arbitration Committee to accept a recognition application.  The percentage is currently set at 10% and the government will have the power to reduce it to between 2% and 10%;
  • removing the requirement for a trade union to show that at least 50% of workers in a proposed bargaining unit are likely to support recognition when it submits a recognition application; and
  • providing that, when recognition is decided by ballot, a trade union will only need the support of a simple majority of votes cast (previously it would also have been necessary to show that at least 40% of all workers in the bargaining unit supported recognition).
• Collective Redundancy (6 April 2026): the maximum award for non-compliance with statutory collective consultation obligations will increase for dismissals taking place on or after 6 April 2026. The maximum liability will now double from 90 days’ pay to 180 days’ pay, significantly increasing the financial cost of failure to consult and making it much riskier for employers to elect not to consult.  Further changes on the threshold for triggering collective consultation obligations (so as to bring into account proposed redundancies across multiple sites or workplaces) will be introduced next year.   
• Whistleblowing Protections for Sexual Harassment (6 April 2026):
  Whistleblowing law will be expanded so that a disclosure of sexual harassment becomes a 'qualifying disclosure'. An employee who makes a ‘qualifying disclosure’ in these circumstances will receive protection from detriment and unfair dismissal if the disclosure is made in the public interest.  Although a complaint of sexual harassment may already be protected under existing law, the change spells out expressly that whistleblowing legislation can be used to pursue an allegation of sexual harassment.
• Paternity and Ordinary Parental Leave (6 April 2026):  a series of changes will enhance parental rights for employees from the first day of employment, including:
• Paternity Leave: statutory paternity leave will become a 'day one right,' meaning eligible employees can give notice of leave from their first day of employment. The current 26-week qualifying period is withdrawn;
  • Ordinary Parental Leave: unpaid parental leave will also become a 'day one right', removing the current one-year qualifying period; and
  • Shared Parental Leave: the current restriction on taking paternity leave after a period of shared parental leave will be removed.
• Sick Pay (6 April 2026): significant relaxations relating to eligibility for statutory sick pay (SSP) come into effect. These mean that more employees will become eligible to receive SSP and at an earlier stage of an illness:
  • Waiting Period: SSP will be paid from the first day of illness, removing the current three-day waiting period; and
  • Lower Earnings Limit: the lower earnings limit, which currently requires workers to earn a minimum amount to be eligible for SSP, also will be removed.
• Gender Pay Gap / Menopause Action Plans (6 April 2026):  employers may choose to prepare action plans around gender pay gaps and other measures to support gender equality (such as assisting employees with menopause) on a voluntary basis. The production of these action plans is expected to become mandatory for large employers (that is, employers with 250 or more employees) in 2027.
• Fair Work Agency (7 April 2026): the Fair Work Agency (FWA) will be established on 7 April 2026. The FWA will consolidate the function of existing enforcement bodies such as HMRC’s National Minimum Wage Team and the Employment Agency Standard Inspectorate. The FWA will have a range of powers to investigate and take action against businesses that do not comply with the law in relation to matters such as domestic agency rules, the minimum wage and licensing standards for gangmasters.  In due course, it is also expected to assume responsibility for the enforcement of holiday pay and statutory sick pay.  The Chairman of the FWA, Matthew Taylor, has sought to downplay its enforcement powers, emphasising the importance of “education” in preference to compliance.   

Implications for employers

The April 2026 changes represent a significant further recalibration of employee rights and employer responsibilities. 

Employers will need to ensure internal policies and procedures are updated accordingly to comply with the new legislation, particularly those relating to parental leave, sick pay, redundancy consultation and whistleblowing. 

The April 2026 changes pose increased risks for employers both in terms of the increased statutory burden and the associated financial exposure (for example, in respect of the increased collective redundancy protective award). This increased risk, combined with the establishment of the FWA (which is likely, over time, to lead to a more robust enforcement landscape), reinforces the need for employers to ensure compliance. 

Employers will also need to consider carefully the possible impact of the new trade union recognition rules, which could both make applications for recognition more likely and increase the likelihood that they will succeed.

The staggered nature of the ERA reforms, with further significant changes expected later in 2026 and into 2027, also means that employers need to adopt an iterative approach to their preparations. Staying abreast of upcoming guidance and regulations will be critical to ensure continuous compliance. 

If you would like to discuss in further detail any of the points raised in this blog post, please get in touch with your usual Freshfields contact.