Employment Rights Act 2025 Explained What Small Businesses Need to Know Before April 2026
- Bearman HR | HR Services in Kent
- Jan 25
- 5 min read
The Employment Rights Act 2025 is now law, and for small business employers it brings a series of important employment law changes starting from April 2026. After months of consultation and speculation, the focus is shifting from what might happen to what businesses actually need to prepare for. While the changes will be phased in over time, early reforms around day one employment rights, Statutory Sick Pay, family leave and enforcement mean now is the right moment for employers to review contracts, policies and onboarding processes to ensure they remain compliant, proportionate and practical.
The Employment Rights Act 2025 From Rumour to Reality
If it feels like the Employment Rights Bill has been coming for a while, you are not wrong. After months of headlines, speculation and consultation, it has now passed and become law as the Employment Rights Act 2025.
Before you brace yourself for a compliance earthquake, take a breath.
This is not one giant overnight overhaul. The changes are being phased in, with the first wave expected from April 2026 and further reforms following later through secondary legislation.
What Is the Aim of the Employment Rights Act 2025
The aim is a clearer, fairer workplace, particularly around job security, sick pay and family friendly rights.
For employees, that is largely good news. For small businesses, it means paying closer attention at the start of the employment relationship, especially when it comes to contracts, policies and day one entitlements.
What Small Business Employers Should Know Now
There are three important reassurances:
Not everything changes at once
Not every change applies to every business in the same way
There is time to prepare
The direction of travel is clear. Employers are expected to be more consistent, transparent and organised from day one. This makes now a sensible time to check whether your paperwork and processes still reflect how your business actually runs, rather than how it ran three hires ago.
Done well, these changes do not need to be disruptive. With the right support, they can be built into what you already do in a compliant and commercially sensible way.
Key Employment Law Changes from April 2026
The first phase of changes due from April 2026 are the ones small business employers are most likely to notice first.
They focus on:
Day one employment rights
Statutory Sick Pay
Family leave
Stronger enforcement of employment law
Day One Employment Rights What Small Businesses Need to Know
One of the biggest shifts is the expansion of day one employment rights. More rights will apply from the very first day of employment, rather than after a qualifying period.
This includes paternity leave and unpaid parental leave.
What This Means in Practice for Employers
In practical terms:
Contracts need to be clear, current and issued on time
Policies should reflect both the law and how your business actually works
Onboarding matters more than ever because first impressions and first documents count
For small businesses, this is not about adding red tape. It is about moving away from informal we will sort it later arrangements and towards clear, consistent basics from the start.
Statutory Sick Pay Changes in 2026
From April 2026, Statutory Sick Pay will be payable from the first day of sickness. The current waiting days will be removed, and the lower earnings limit for SSP eligibility is expected to be removed as well.
This widens access to SSP and increases employer responsibility from day one of absence.
How Statutory Sick Pay Changes Will Affect Small Employers
In reality, this may mean:
Slightly increased SSP costs, particularly in customer facing or manual roles
A need to refresh sickness absence policies
Managers needing confidence to handle absence fairly and consistently
The intention is to support employees, but for employers it reinforces the importance of clear rules, good records and a sensible, consistent approach to absence management.
Paternity Leave and Family Friendly Rights Changes
Another headline change from April 2026 is paternity leave becoming a day one right.
Employees will no longer need a minimum length of service to qualify for paternity leave itself.
Paternity Leave Entitlement vs Statutory Paternity Pay Explained
This change relates to entitlement to leave, not necessarily statutory paternity pay.
Statutory paternity pay will still depend on earnings thresholds and notice requirements.
What Employers Should Prepare For
For small business employers, this means:
Family friendly policies will need updating
Paternity leave requests may arise earlier in employment
Clear documentation will help avoid confusion and difficult conversations
There are also additional leave rights being introduced. In certain circumstances, such as where a partner passes away during or shortly after childbirth, paternity leave may extend up to 52 weeks.
Other Employment Law Changes Employers Should Be Aware Of
April 2026 also brings wider changes that may not affect day to day operations immediately but are important to understand.
Stronger Enforcement and Higher Financial Risk
These include:
Collective redundancy consultation penalties expected to double
Strengthened whistleblowing protections, including disclosures relating to sexual harassment
The creation of a new Fair Work Agency to enforce rights such as minimum wage, holiday pay and SSP
While these changes will not impact every employer directly, they underline the government’s intent to take compliance and enforcement more seriously.
What Is Not Changing Yet
Unfair dismissal is not becoming a true day one right from April 2026. A qualifying period will still apply, although this may reduce in the future.
What Should Small Business Employers Be Doing Now
No one needs a full HR overhaul overnight. However, now is a sensible time to:
These early changes set the tone for what is coming next. Businesses that prepare calmly and early will be in the strongest position.
How award finalist Bearman HR Can Help
We work with small businesses across Kent and London, supporting owners and managers who want to do the right thing by their people without getting lost in employment law.
We can help you with:
Reviewing and updating contracts and handbooks
Ensuring policies reflect April 2026 changes
Practical advice on day one rights, SSP and family leave
Ongoing HR support that is clear, commercial and jargon free
If you would like a simple compliance check, a policy refresh or a conversation about what these changes mean for your business, we are here to help.
📞 07956 466 247
No scare tactics. No unnecessary complexity. Just straightforward HR support that fits your business. Because employment law will always change. Dealing with it does not have to be stressful.
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