A version of this article was first published by Reward and Benefits Association in April 2026.
When Parliament passed the Employment Rights Act 2025 in December last year, it fired the starting gun on the most significant overhaul of UK employment law in decades. Representing a fundamental shift in the balance of rights at work, the Act reshapes every stage of the employment relationship – from contracts through to dismissal.
For employers, the scale and pace of change means preparation is essential. While further reforms are scheduled for later in the year – including expanded anti‑harassment protections and enhanced trade union access rights from October and with (much) more to come in 2027 – April brought the first wave of major change that has an immediate operational and financial impact.
Statutory sick pay: day one entitlement
From 6 April, statutory sick pay (SSP) became payable from the first day of employee absence (rather than the fourth), and the lower earnings threshold for eligibility is removed. This means all eligible employees will qualify for some level of SSP, regardless of earnings.
For employers who do not already offer sick pay from day one, this change carries clear cost implications. There may also be concern that removing the waiting days could increase short‑term absence levels. Reviewing absence management processes, ensuring return‑to‑work conversations actually happen and equipping managers on how to deal with absence will be critical to...
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