Employment & HR — ERA 2025

Employment Rights Act 2025: The Errors Still Circulating Among UK Employers

Several widely-shared HR guides contain errors about what the ERA 2025 actually changed. If your employment contracts haven’t been updated, some of them may be based on incorrect information.

By Dave Osborne, DocPilot · Published June 2026 · 6 min read

Contents

  1. Error 1 — SSP waiting days
  2. Error 2 — Unfair dismissal qualifying period
  3. Error 3 — Family leave qualifying periods
  4. Error 4 — National Minimum Wage rates
  5. What to update in your contracts

The Employment Rights Act 2025 is the most significant reform to UK employment law in a generation. Its provisions came into force in stages — most of the impactful changes took effect on 6 April 2026. In the weeks since, a significant amount of incorrect information has been circulating in HR guides, employer newsletters, and template packs.

This article identifies the specific errors we have seen most frequently and states what the Act actually says.

Error 1 — SSP waiting days: “the three waiting days still apply in some circumstances”

Several HR guides are stating that the three SSP waiting days have been abolished “in most cases” or “for absences over a certain length.” This is incorrect.

The Employment Rights Act 2025 abolished the three waiting days entirely and without qualification. From 6 April 2026, Statutory Sick Pay is payable from the first day of absence for all eligible employees, for all absences, regardless of length.

What to check: If your employment contract mentions SSP waiting days, the three-day waiting period, or states that SSP is payable “from the fourth day of absence,” that clause is now inaccurate and should be updated or removed.

The Lower Earnings Limit for SSP eligibility has also been removed. Previously, employees needed to earn at or above the Lower Earnings Limit to qualify. This requirement no longer applies — all employees are eligible from day one of employment.

Error 2 — Unfair dismissal qualifying period: “the two-year qualifying period remains”

Some employer guides are stating that the two-year qualifying period for unfair dismissal protection remains in place. This is technically currently correct — but dangerously misleading without context.

The two-year qualifying period applies until 1 January 2027. From that date, the qualifying period drops to six months. Any employer who reads a guide stating “the two-year qualifying period applies” without the January 2027 caveat is being given incomplete information that will catch them out in six months.

What this means in practice: From January 2027, any employee you dismiss after six months of employment can bring an unfair dismissal claim. The compensatory award cap is also being removed. Dismissals that currently carry minimal legal risk will become significantly more expensive to get wrong. Start building your documentation processes now.

The probationary period implications are significant. An employer who currently thinks a six-month probation gives them a clean exit if things do not work out needs to understand that from January 2027, that clean exit closes from month seven. Performance concerns should be documented from day one.

Error 3 — Family leave qualifying periods: “paternity leave requires 26 weeks’ service”

A number of employment contract templates in circulation — including some sold by established providers — still state that paternity leave requires 26 weeks of continuous employment. This is wrong as of 6 April 2026.

The following are now day-one rights under the ERA 2025:

Maternity leave and adoption leave remain day-one rights as before. The significance of the paternity leave change is that an employee who starts work on a Monday and whose partner gives birth on Friday is immediately entitled to paternity leave. There is no qualifying period.

Contract impact: Any employment contract that states a qualifying period for paternity or parental leave is now inaccurate. The incorrect clause does not invalidate the contract, but it creates confusion and potential liability if an employee is denied a right they are legally entitled to.

Error 4 — National Minimum Wage rates: outdated figures still in circulation

The National Minimum Wage rates increased on 1 April 2026. A significant number of HR guides, offer letter templates, and employment contract templates in circulation still reference the pre-April 2026 figures.

CategoryRate from April 2025Rate from April 2026
National Living Wage (21+)£11.44/hour£12.21/hour
18–20 year olds£8.60/hour£10.00/hour
16–17 year olds£6.40/hour£7.55/hour
Apprentice rate£6.40/hour£7.55/hour

Paying below the current NMW rates is a criminal offence. Employers can face penalties of up to £20,000 per worker and public naming by HMRC. Any offer letter or contract that references specific pay rates should be checked against the April 2026 figures.

What to update in your employment contracts right now

If your employment contracts were last reviewed before April 2026, the following clauses need attention:

ERA 2025 Compliant Employment Contract

DocPilot’s Employment Contract Template 2026 is updated for every change listed above — SSP from day one, day-one family leave rights, April 2026 NMW rates, and the January 2027 unfair dismissal changes flagged throughout with action prompts.

Get the Employment Contract 2026 (£19.99) →

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