These changes affect family leave, redundancy processes, sick pay, whistleblowing and enforcement. While this is only the first wave of reform, the impact on employers will be immediate in several key areas.

Below is a summary of the changes employers need to be aware of to ensure continued compliance and good workforce management.

Day one rights for paternity and parental leave

Previously, employees needed 26 weeks’ service to qualify for paternity leave rights and a full year before unpaid parental leave rights were acquired.

However, from 6 April 2026, employed parents will gain “day one” eligibility for both paternity and unpaid parental leave under the ERA. This applies to parents of:

• Babies with an expected week of childbirth on or after 5 April 2026
• Babies born on or after 6 April 2026
• Children placed for adoption on or after 6 April 2026.

These entitlements cannot be used before 6 April 2026, even if the parent becomes newly eligible under the updated rules.

The qualifying period for statutory paternity pay remains unchanged at 26 weeks’ service.

What this means for employers:

Employers will need to check their policies and systems to ensure they reflect immediate entitlement from the start of employment.

Collective redundancy – increased financial exposure

The collective redundancy framework is set for major change under the ERA. The first measure to be introduced in April is the increase to the protective award.

Where an employer fails to comply with collective consultation obligations, the maximum award will increase from 90 days’ pay per employee to up to 180 days’ pay per employee.

What this means for employers:

The cost of getting collective consultation wrong has effectively doubled, increasing the importance of following the statutory consultation process (which is itself expected to undergo further reform under the ERA).

Statutory Sick Pay becomes a day one right

The current three-day waiting period for Statutory Sick Pay (SSP) will be removed, making SSP a “day one right”. The removal of the lower earnings limit also expands the number of employees covered by this protection.

What this means for employers:

Absence costs could increase where employers do not have enhanced sick pay policies, and sickness absence policies may need to be reviewed to reflect the new position.

Whistleblowing – expanded protection

The scope of whistleblowing protection will be expanded in April, with sexual harassment being introduced as a new standalone category of protected disclosure.

Any employee who makes a disclosure relating to sexual harassment will be protected from both detriment and unfair dismissal, ensuring they are not penalised, disadvantaged, or dismissed because they have raised concerns.

What this means for employers:

Employers should ensure that internal reporting processes are robust, and that managers are trained to recognise and appropriately handle protected disclosures.

Statutory trade union recognition – lower barriers

Following some introductory changes introduced in February 2026 to simplify strike processes, the ERA further reforms the statutory union recognition procedure.

Key changes include:

• Removal of several existing application stage requirements
• Government powers to reduce workforce thresholds in a proposed bargaining unit (potentially as low as 2%)
• Removal of early majority support requirements
• Abolition of the 40% support threshold.

What this means for employers:

These changes significantly lower procedural barriers and streamline the route to statutory recognition, increasing the likelihood of unionisation in some sectors.

Gender pay gap and menopause action plans

Although voluntary from April 2026 (expected to become mandatory in 2027), employers with 250 or more employees will need to introduce action plans detailing:

• The steps they are taking to improve gender equality
• Support for women experiencing menopause.

What this means for employers:

Although not yet compulsory, employers should begin developing structured, evidence-based action plans in anticipation of future legal obligations.

Creation of the Fair Work Agency

The ERA will also introduce a new enforcement body, the Fair Work Agency (FWA), which will hold extensive powers including:

• Enforcing wage and holiday pay compliance
• Raising employment tribunal claims on behalf of employees
• Entering business premises to inspect documentation.

What this means for employers:

The FWA consolidates several existing enforcement functions and aims to support employers in meeting their obligations. While immediate effects may be limited, the agency represents a significant shift in the enforcement landscape, increasing the importance of compliance and record-keeping.

Other April changes

Alongside ERA-related changes, the annual increase to the National Minimum Wage also takes place in April. The rate for those aged 21 and over will increase from £12.21 to £12.71 on 1 April.

From 6 April, the statutory redundancy cap on a week’s pay will increase from £719 to £751 as well as the cap on the unfair dismissal award which will rise from £118,223 to £123,543 (subject to the proposed removal of the cap in 2027).

What these changes mean for your business

The first phase of ERA reforms is now approaching implementation. Employers should:

• Review existing policies, procedures, and employment contracts
• Ensure HR and management teams understand the new rules
• Begin preparing for further changes expected in October 2026.

How TWM can help

TWM Solicitors’ Employment Law team advises employers on navigating legislative change, managing risk and implementing compliant workplace practices.

We can support you with policy reviews, training, and strategic advice to help your business prepare for the evolving employment law landscape.

If you would like advice on how these changes affect your organisation, please contact our Employment Law team.