The Employment Rights Act 2025 is the most significant reform to UK employment law in a generation. Its provisions are being implemented in stages between 2025 and 2027. The most impactful changes for most employers came into force on 6 April 2026.
⚠️ Action required: If your employment contracts still reference waiting days for SSP, a two-year qualifying period for unfair dismissal protection, or pre-2026 NMW rates, they are out of date and should be updated immediately.
From 6 April 2026, Statutory Sick Pay (SSP) is payable from the first day of absence. The three waiting days that previously applied have been abolished.
| Feature | Before 6 April 2026 | From 6 April 2026 |
|---|---|---|
| Waiting days | 3 waiting days (SSP not paid) | None — SSP from day 1 |
| Lower Earnings Limit | Employee must earn above LEL | LEL removed — all employees qualify |
| SSP rate (2026/27) | £116.75/week | £118.75/week |
| Maximum duration | 28 weeks | 28 weeks |
This means that for every day an employee is sick from their first day, you must pay SSP. A two-day illness that previously cost you nothing now costs you two days of SSP. Budget accordingly and ensure your payroll is updated.
Contract update required: Any employment contract that mentions the three waiting days or the Lower Earnings Limit is now inaccurate. Update to reflect the new position or remove the reference entirely.
From 6 April 2026, the following are day-one rights — no qualifying period applies:
Maternity leave and adoption leave remain day-one rights as before. The change means that an employee who starts work on Monday and whose partner gives birth on Friday is immediately entitled to paternity leave.
Currently, employees need two years' continuous employment before they can claim unfair dismissal. From 1 January 2027, this drops to six months.
This is one of the most significant changes for employers. From January 2027, you are effectively exposed to unfair dismissal claims from an employee's seventh month of employment. Implications:
⚠️ Start preparing now: Review your probation and performance management processes before January 2027. Ensure all managers understand that dismissal decisions will need to be properly documented and procedurally fair from a much earlier stage.
| Category | Rate from April 2026 |
|---|---|
| National Living Wage (21+) | £12.21 per hour |
| 18–20 year olds | £10.00 per hour |
| 16–17 year olds | £7.55 per hour |
| Apprentice rate | £7.55 per hour |
Ensure all employment contracts, offer letters, and payroll systems reflect the April 2026 rates. Paying below NMW is a criminal offence with penalties of up to £20,000 per worker.
DocPilot's Employment Contract Template 2026 reflects every ERA 2025 change — SSP from day one, day-one family leave rights, updated NMW rates, and the January 2027 unfair dismissal changes flagged throughout.
Get Employment Contract 2026 (£19.99) →Stay Current
When the law changes we'll send you a plain-English update. No spam. Unsubscribe any time.