New employment rights from day one: What employers need to know about the Employment Rights Act UK

The Employment Rights Act 2025 (ERA) has compressed the window employers have to prevent risk. New employment rights from day one now affect the early stages of the employment lifecycle, creating immediate operational pressure on absence management, workforce planning and probation processes.

This shift will test whether policies, manager capability and HR infrastructure are strong enough to withstand earlier scrutiny and a likely increase in employee relations pressure and legal risk. This guide explains what has changed, what is still to come, and what employers should do now to prepare.

The shift to earlier employment rights

The ERA brings forward access to key rights. Some of the most important changes for employers include:

• Day one family leave rights: From 6 April 2026, eligible employees can access paternity leave and unpaid parental leave from day one.
• Day one Statutory Sick Pay (SSP): From 6 April 2026, SSP became payable from the first full day of sickness absence, and the Lower Earnings Limit has been removed for eligible employees.
• Probation and unfair dismissal: From 1 January 2027, the qualifying period for ordinary unfair dismissal is expected to reduce from two years to six months, and the cap on compensatory awards is expected to be removed. Day one unfair dismissal protection was originally proposed, but that was changed before the Act became law.

These reforms bring legal, financial and operational risk forward, making confident, consistent early-stage management decisions increasingly important.

Day one right to Statutory Sick Pay (SSP)

Since 6 April 2026, Statutory Sick Pay (SSP) has moved to a day one right. The previous three-day waiting period and lower earnings threshold have been removed, meaning more employees now qualify and are paid from the first day of illness.

Stefan Mars, Head of Legal at Halborns, states, “The Employment Rights Act places a direct financial burden on employers, particularly in sectors that rely heavily on flexible contracts or low-paid workers. The Statutory Sick Pay changes are a clear example. SSP is now payable from the first day of illness, and the removal of the lower earnings limit means more employees now qualify, increasing both cost and administrative pressure for employers.

Jane Bradshaw-Jones, HR Business Partner at AdviserPlus, adds, “For employees, the change strengthens financial security during sickness absence and reduces the uncertainty that often comes with taking time off. For employers, it increases both cost and administrative complexity, with many organisations reviewing workforce planning, payroll processes and sickness absence approaches in response.”

Managing absence now requires a more proactive approach. Employers need managers to act early, handle conversations confidently and apply policies consistently, while balancing employee wellbeing with operational resilience.

Catch up on our on-demand webinar, ‘Statutory Sick Pay – Unpacking the impact on costs and complexity’, for practical steps employers can take to build a healthier workplace culture and achieve a significant reduction in absence rates and costs.

Day one family leave rights

From 6 April 2026, eligible employees can access paternity leave and unpaid parental leave from the first day of employment, removing previous service thresholds.
For employers, this creates immediate pressure on policy clarity, workforce planning and manager confidence.

Managers need to understand the rules, handle requests sensitively and apply processes consistently, while balancing employee rights with operational needs.

Shorter unfair dismissal protection

The original proposal for day one unfair dismissal protection was dropped before the Act became law, but the move to a six-month qualifying period, expected in January 2027, is still going to have a major impact on employers.

Even on that revised basis, our analysis identified a potential rise of up to 230% in activity on probation matters, requiring 13% more employee relations (ER) advisory resources, as businesses prepare for a much shorter qualifying period.

This means probation is no longer a low-risk window. It is becoming a critical period for performance management and decision-making.

Jane Bradshaw-Jones adds, “Many accidental managers are not trained or fully aware of their legal responsibilities during probation, and that needs to change. Thorough training and clear accountability are required to ensure managers set appropriate objectives, conduct effective reviews and feel prepared for the additional workload.”

Catch up on our on-demand webinar, ‘Webinar | From pre-hire to probation: Why the 6-month window changes everything’, for practical steps employers can take to build manager capability and reduce the risk of unfair dismissal claims now.

What this means for employers

1. Policies must work in practice

Organisations should have updated contracts, handbooks and related policies to reflect the changes to absence and family leave. While some may still be preparing for the unfair dismissal reforms, delaying action now creates unnecessary risk. The priority now is to ensure they are:

• Applied consistently
• Understood by managers
• Embedded into day-to-day decision-making

This includes sickness absence, family leave, probation and dismissal processes.

Explore how our Group HR solutions can help.

2. Managers need to be prepared

Manager capability is now central to compliance. Stronger people management skills will help organisations:

• Reduce legal risk and HR burnout
• Improve performance and engagement
• Maintain consistency across teams

However, many accidental managers are undertrained in probation, absence and ER processes. Closing this capability gap is essential.

Download our whitepaper, ‘Employee relations priorities in the new litigious era’ to learn more about how you can prepare your managers for these challenges and create a stronger, more confident leadership team.

3. Employee relations processes must be proactive

With earlier risk comes the need for earlier intervention. Outsourcing employee relations advisory services gives managers access to expert advice in the moment, while freeing up internal HR capacity to focus on strategic priorities.

Backed by robust technology, data, analytics and documentation, it enables a more consistent, evidence-led approach to managing risk and building manager capability across the organisation.

empower® supports this through:

• Guided ER case management processes
• Robust templates and workflows
• Timely prompts and alerts
• In the moment coaching for managers

This builds manager capability and confidence in handling:

• Sickness absence
• Probation reviews
• Performance management
• Grievances and disciplinary cases

More importantly, it ensures issues are addressed early, before they escalate into formal disputes.

Helpful ERA resources for employers

The Employment Rights Act marks a clear shift in the employment landscape. Earlier access to employee rights is already reshaping absence management and workforce planning, and further reform in 2027 will intensify this.

Employers that act now to strengthen policies and contracts, and build manager capability by embedding proactive ER processes, will be best placed to minimise risk, drive growth and maintain a positive employee experience.

To help you prepare for the Employment Rights Act changes, we’ve pulled together some practical resources below:

• Download this free Employment Rights Act summary and tracker created by our Group legal experts.
• For a practical overview of the April 2026 changes, read our update: Employment Rights Act: April changes are here.
• Watch ‘Reduce sickness absence costs with empower®’ to learn how empower® builds manager capability to reduce absence rates by up to 10%.
• Watch ‘Reduce employment tribunal risk with empower®‘ for a glimpse at how empower® supports organisations to reduce employment tribunal claims.