New employment rights, and what this means for businesses

The UK government’s Employment Rights Act 2025 passed in December 2025. These updates to employment rights began to be implemented in February, and will continue to be phased in throughout 2026 and 2027. Some laws have already come into effect, and as such there are things that businesses need to do to make sure that they’re abiding by these new requirements. 

Currently, changes have been implemented to businesses legal requirements for Statutory Sick Pay, Holiday Records, Paternity and Unpaid Parental Leave, Bereaved Partner’s Paternity Leave, Whistleblowing Protections. These came into effect on 6th April 2026.

There was previously a Lower Earnings Limit for employees to qualify for Statutory Sick Pay. This has been removed, as has the three day waiting period to receive Statutory Sick Pay. The rate for Statutory Sick Pay is now calculated in relation to earnings; employees are entitled to 80% of their average weekly earnings or the statutory weekly rate, whichever is lower.

Businesses will need to ensure that any internal systems that record absences, or calculate Statutory Sick Pay are updated, so that employees receive the new amount. It is also important to ensure that specific records are kept of employee absences related to sickness, as they are entitled to pay from the first day that they report to the business.

Businesses are now expected to keep records of annual leave and holiday pay, and retain the information for at least 6 years. This includes any holiday that an employee has taken, holiday entitlement that has been carried over from previous years of employment, holiday pay, and any payments given for unused holiday.

Previously, employees were only eligible for Parental Leave (both paid and unpaid) after a year of working for an organisation. It is now a day one right, meaning that someone can give notice of Parental Leave and Paternity Leave from their first day of employment. Fathers and partners are now also able to take Paternity Leave and Pay after Shared Parental Leave and Pay.

Businesses will need to update their handbook, policies and any documentation that details your organisation’s approach to Paternity Leave and Parental Leave, to ensure that the new legal requirements are reflected. Any internal systems that process Parental Leave also need to be changed so that this can be accessed from the first day of a person’s employment. 

Bereaved Partner’s Paternity Leave has been updated, and a new right has been added. Employees for whom their partner, or mother of their child has died within the first year of a child’s life, or within one year of adoption, is eligible to take up to 52 weeks of leave from work. This is a day one right, meaning that employees qualify from their first day of employment. There are no statutory pay requirements. 

For businesses, they’ll need to make any necessary updates to their handbook, policies and documentation which is related to Bereavement, and they should also consider if they need to change any pay entitlement for employees during this period.

Whistleblowing Protections

The rights for Whistleblowing have been extended to employees who report sexual harassment. The Employment Rights Act has made sexual harassment a ‘qualifying disclosure’, which means employees that disclose sexual harassment are protected from unfair dismissal, and detriment.