The Employment Rights Act 2025 changes coming into force from April 2026 introduce major reforms to UK employment law, with the most significant shift being the simplification of the trade union recognition process and stronger worker protections across multiple areas.

These updates make it easier for unions to gain recognition, expand employee rights from day one, and increase employer compliance obligations.

Key takeaways:

• Union recognition no longer requires proof of majority support
• Ballots now require only a simple majority of votes cast
• Statutory Sick Pay is available from day one
• All employees qualify for SSP regardless of earnings
• Day-one rights introduced for paternity and parental leave
• Redundancy penalties increased to 180 days’ pay
• Fair Work Agency strengthens enforcement across the UK

What Are the Key Employment Rights Act 2025 Changes Coming Into Force in April 2026?

The Employment Rights Act 2025 changes taking effect from April 2026 introduce a wide range of reforms that reshape how employment law operates across the UK.

These changes are not limited to one area but instead affect union recognition, statutory payments, family rights, enforcement mechanisms, and employer compliance responsibilities.

At a high level, the reforms aim to strengthen worker protections while simplifying processes that were previously seen as complex or restrictive.

One of the most significant developments is the shift in how trade unions can achieve statutory recognition, making it easier for collective bargaining structures to emerge within organisations.

Alongside this, changes to Statutory Sick Pay expand access and increase employer cost exposure, while family leave reforms remove service requirements, giving employees immediate rights from the first day of employment.

Enforcement is also becoming more centralised and robust through the introduction of the Fair Work Agency.

The following table provides a structured overview of the main areas of reform:

Area of Reform	Key Change	Impact on Employers	Impact on Employees
Union Recognition	Simplified process and lower thresholds	Increased likelihood of union requests	Easier access to representation
Statutory Sick Pay	Day one entitlement and wider eligibility	Higher payroll costs	Improved financial support
Family Leave	Day one rights introduced	More administrative planning	Immediate access to leave
Redundancy Rules	Increased penalties	Greater financial risk	Stronger protection
Enforcement	Fair Work Agency introduced	Increased oversight	Better enforcement of rights

These changes are interconnected. For example, stronger union access combined with stricter enforcement creates a regulatory environment where employers are expected to be proactive rather than reactive.

How Is the Trade Union Recognition Process Changing Under the Employment Rights Act 2025?

The changes to trade union recognition represent one of the most impactful elements of the Employment Rights Act 2025. The statutory recognition framework has been redesigned to remove procedural barriers and accelerate decision-making.

Previously, unions were required to demonstrate that a majority of workers in a proposed bargaining unit were likely to support recognition before the process could move forward.

This often required petitions or other forms of evidence, which could be time-consuming and difficult to obtain.

From April 2026, that requirement has been removed entirely. This means unions can initiate the recognition process without having to provide upfront proof of majority support.

Another major change relates to ballots. Where a ballot is required, the outcome will now be determined by a simple majority of votes cast. The previous requirement that at least 40 per cent of all eligible workers must support recognition has been removed.

The table below highlights the comparison:

Recognition Rule	Before April 2026	After April 2026
Proof of Support	Required evidence of majority support	No upfront evidence required
Ballot Threshold	The majority plus 40 per cent of the workforce	Simple majority of votes cast
Membership Threshold	Minimum 10 per cent	Reduced the threshold between 2 and 10 per cent

These changes significantly reduce the administrative burden on unions and increase the likelihood of successful recognition applications.

What Does the Removal of the 40% Support Threshold Mean?

The removal of the 40 per cent threshold fundamentally changes how ballots operate. Under the previous system, even if a majority of those voting supported recognition, the application could still fail if turnout was low or if the total support did not meet the 40 per cent threshold of the entire workforce.

Now, the outcome depends solely on the votes cast. This makes participation more influential and reduces the impact of non-voting employees on the result.

A legal professional working in employment law explained the practical implications:

“In my experience advising employers, the 40 percent rule often acted as a safety net. Without it, the focus shifts entirely to engagement during the ballot itself, and employers need to be far more prepared for that stage.”

How Will These Changes Impact Employer–Union Relations?

The relationship between employers and trade unions is likely to evolve as a result of these reforms. With fewer procedural barriers, unions may initiate recognition processes more frequently, particularly in sectors where organisation levels are already growing.

Employers may need to adopt a more proactive approach to employee relations, focusing on communication, transparency, and engagement rather than relying on procedural safeguards.

Some expected outcomes include:

• Increased union activity in previously non-unionised workplaces
• Greater emphasis on collective bargaining
• More structured dialogue between management and employee representatives

These developments suggest a shift towards a more collaborative but also more regulated employment environment.

What Are the New Rules for CAC Applications and Union Recognition Requests?

The Central Arbitration Committee plays a central role in statutory union recognition. From April 2026, the process for submitting applications has been updated to improve efficiency and reduce delays.

Under the new rules, applications must include all required documentation at the time of submission. This includes the union’s formal request for recognition and any response from the employer.

Applications that do not meet these requirements will be rejected.

The updated process can be summarised as follows:

Step	Requirement	Outcome if Missing
Submission	Full application with supporting documents	Application rejected
Documentation	Request letter and employer response	Mandatory inclusion
Timing	From 6 April 2026 onwards	Applies to all new cases

This change places greater responsibility on both unions and employers to ensure that documentation is complete and accurate from the outset.

How Are Statutory Sick Pay (SSP) Rules Changing in 2026?

Statutory Sick Pay has been restructured to provide broader coverage and earlier access for employees. Two major changes define the new system.

First, the removal of waiting days means that SSP is now payable from the first day of absence. Previously, employees had to wait three days before becoming eligible for payment.

Second, the removal of the lower earnings limit allows all employees to qualify for SSP, regardless of income level. Employees earning below the threshold will receive a percentage-based payment rather than the full standard rate.

The following table outlines these changes:

SSP Feature	Previous Rule	New Rule
Waiting Period	3 unpaid days	Paid from day one
Eligibility	Minimum earnings required	All employees eligible
Payment for Low Earners	Not eligible	80 per cent of the average earnings or the standard rate

For employers, these changes require adjustments to payroll systems and absence management policies.

Key considerations include:

• Increased short-term absence costs
• Need for accurate payroll calculations
• Review of existing contractual sick pay schemes

What New Family Leave Rights Are Introduced Under the Employment Rights Act 2025?

Family leave rights have been expanded to provide immediate access for employees from the start of their employment. This removes previous qualifying service requirements that often delayed eligibility.

Employees are now entitled to:

• Statutory paternity leave from day one
• Unpaid parental leave from day one

In addition, a new category of leave has been introduced for bereaved partners, allowing up to 52 weeks of unpaid leave following the death of a partner related to childbirth.

The comparison below highlights the shift:

Leave Type	Before 2026	After 2026
Paternity Leave	Service requirement applied	Day one right
Parental Leave	Service requirement applied	Day one right
Bereavement Leave	Limited provisions	New extended entitlement

These changes are expected to increase the number of leave requests and require employers to manage workforce planning more carefully.

How Should Employers Update Family Leave Policies?

Employers must ensure that internal policies reflect the new legal framework. This includes updating contracts, employee handbooks, and HR systems.

Key updates include:

• Removing references to qualifying service periods
• Training HR teams and managers
• Communicating new rights to employees clearly

These steps help ensure compliance while supporting employees during important life events.

How Are Collective Redundancy Rules and Penalties Changing?

The financial consequences of failing to comply with collective redundancy consultation requirements have increased significantly. The maximum protective award has doubled from 90 days to 180 days of pay per affected employee.

This change raises the stakes for employers planning large-scale redundancies.

Aspect	Previous Rule	New Rule
Maximum Penalty	90 days pay	180 days pay
Consultation Requirement	Mandatory	Mandatory with higher risk
Tribunal Exposure	Moderate	High

Employers must ensure that consultation processes are thorough and properly documented.

An HR leader shared a practical perspective:

“When I was involved in a redundancy programme, timelines were already tight. With penalties now doubled, there is far less tolerance for mistakes, and planning needs to start much earlier.”

What Is the New Whistleblowing Protection for Sexual Harassment Disclosures?

The scope of whistleblowing protections has been expanded to include disclosures related to sexual harassment. Employees who report such issues are now protected under whistleblowing legislation, provided the disclosure is made in the public interest.

This change strengthens protections and aligns whistleblowing with broader workplace equality obligations.

Employers must ensure that:

• Reporting mechanisms are accessible
• Investigations are handled appropriately
• Retaliation is strictly avoided

Failure to comply may result in claims for automatic unfair dismissal and additional legal consequences.

What Is the Fair Work Agency and How Will It Affect Employers?

The Fair Work Agency is a new enforcement body that consolidates several existing regulatory functions into a single organisation. Its role is to improve the enforcement of employment rights across the UK.

Its powers include:

• Investigating employers
• Issuing penalties
• Bringing claims on behalf of workers

The structure of enforcement is outlined below:

Function	Previous System	New System
Enforcement Bodies	Multiple agencies	Single agency
Investigation Power	Limited coordination	Centralised authority
Compliance Action	Reactive	Proactive

This shift indicates a move towards more consistent and visible enforcement.

What Are the New Employer Obligations for Holiday Record-Keeping?

Employers are now required to maintain detailed records of holiday entitlement and payments for a period of six years. This applies to all types of workers, including part-time and irregular hours staff.

The required records include:

• Leave entitlement provided
• Payments made during leave
• Payments in lieu of termination

Failure to maintain these records can result in financial penalties and enforcement action.

What Are Voluntary Equality Action Plans and Will They Become Mandatory?

Large employers are encouraged to publish action plans addressing gender pay gaps and menopause support. While voluntary in 2026, these measures are expected to become mandatory in 2027.

Plan Type	Status in 2026	Future Requirement
Gender Pay Gap Plan	Voluntary	Mandatory from 2027
Menopause Plan	Voluntary	Expected to become mandatory

Employers who adopt these plans early may benefit from improved employee engagement and reputation.

How Should UK Employers Prepare for Employment Law Changes in 2025–2026?

Preparation is essential to ensure compliance with the new legal framework. Employers should focus on reviewing policies, updating systems, and training staff.

Key preparation steps include:

• Conducting compliance audits
• Updating HR documentation
• Training management teams
• Seeking legal advice where necessary

These actions help reduce risk and ensure that organisations are ready for the evolving employment landscape.

What Is the Overall Impact of the Employment Rights Act 2025 Changes on UK Businesses?

The overall impact of the Employment Rights Act 2025 changes is a shift towards greater accountability and stronger worker protections. Employers face increased obligations, while employees benefit from improved rights and access to representation.

Businesses must adapt to:

• More active union involvement
• Increased regulatory oversight
• Higher compliance expectations

At the same time, these changes create an opportunity to build more transparent and supportive workplace environments.

Conclusion: What Do the Employment Rights Act 2025 Changes Mean Moving Forward?

The Employment Rights Act 2025 changes represent a major shift in UK employment law, particularly with the simplification of union recognition and expansion of employee rights. From April 2026, employers must navigate a more regulated and employee-focused landscape.

Looking ahead, further reforms in 2027 will continue to reshape workplace rights, making early preparation essential for long-term compliance and success.

FAQs

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 is a UK law introducing reforms to worker protections, union recognition, and employer obligations, with phased implementation from 2026.

When do the Employment Rights Act 2025 changes take effect?

Many key changes come into force on 6 April 2026, with additional reforms expected in 2027.

How has union recognition changed in 2026?

Unions no longer need to prove majority support beforehand, and only a simple majority in ballots is required.

Who is eligible for Statutory Sick Pay under the new rules?

All employees are eligible, regardless of earnings level, with payments starting from day one of absence.

What are the new penalties for collective redundancy breaches?

Employers may face up to 180 days’ pay per affected employee if they fail to consult properly.

What is the Fair Work Agency?

It is a new UK enforcement body responsible for overseeing compliance with employment laws and taking action against violations.

Will equality action plans become mandatory?

Yes, while voluntary in 2026, they are expected to become mandatory from 2027.