The most significant reform to UK employment law in a generation. Every change employers need to know — and what to update immediately.
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 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reference waiting days for SSP, a two-year qualifying period for unfair dismissal, or pre-2026 NMW rates, they are out of date and should be updated immediately.
From 6 April 2026, Statutory Sick Pay 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 days (SSP not paid) | None — SSP from day 1 |
| Lower Earnings Limit | Must earn above LEL | LEL removed — all qualify |
| SSP rate 2026/27 | £116.75/week | £118.75/week |
Contract update required: Any contract mentioning the three waiting days or Lower Earnings Limit is now inaccurate. Update or remove the reference.
The following are now day-one rights with no qualifying period:
From 1 January 2027, the qualifying period drops from two years to six months. From an employee’s seventh month, you are effectively exposed to unfair dismissal claims.
Start preparing now: Review probation and performance processes before January 2027. Every dismissal will need to be properly documented from a much earlier stage.
| Category | Rate from April 2026 |
|---|---|
| National Living Wage (21+) | £12.21/hour |
| 18–20 year olds | £10.00/hour |
| 16–17 year olds | £7.55/hour |
| Apprentice rate | £7.55/hour |
Updated for every ERA 2025 change — SSP from day one, day-one family leave, updated NMW rates, and January 2027 changes flagged throughout.
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