Preparing for the Employment Rights Act – Things to prepare for now

The Employment Rights Act 2025 changes coming into force in April 2026 will significantly affect employers. The Employment Rights Bill received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025. Several key reforms will be implemented from April 2026, meaning employers should start planning now. These changes represent clear amber flags, and taking early action will help employers prepare for compliance and reduce risk.

Collective Redundancy Protective Award

One of these changes is the collective redundancy protective award, where the current maximum period of the protective award is doubled. It is currently 90 days’ pay per employee, but it will be increased to a maximum period of 180 days’ pay. The triggers and definitions will stay the same.

Under the current law, employers proposing 20+ redundancies “at one establishment” within a period of 90 days must go through a process of collective consultation before making any redundancies. If employers do not comply, employers are liable to pay a protective award of up to 90 days’ pay per employee. There’s no cap on the daily amount.

Steps to Take: We strongly recommend that all employers understand their obligations during a collective redundancy situation to avoid falling foul of the rules. Failure to do so will now be even more costly for the employer. It is important that if employers are planning a collective redundancy early in 2026 that they pay consideration to the changes.

You can read more here: Collective Redundancies.

Changes to Statutory Pay

Further changes to take effect in April 2026 include the day 1 right to paternity leave and unpaid paternal leave. Furthermore, in relation to statutory sick pay, there will be the removal of the Lower Earnings Limit and the waiting period.

Steps to Take: It is crucial that employers review their systems and make sure they can comply with the above changes as soon as possible. It is also important for employers to provide training to those in HR and manager roles so that they are aware of the changes and the support that needs to be offered in relation to these types of statutory pay. Furthermore, employers should anticipate that there will be increased leave within teams and prepare to manage team workloads.

You can read more here: Family Rights.

Fair Work Agency Body Establishment

In April 2026 it is proposed that the Fair Work Agency body will be established. This is a body aimed at streamlining the enforcement of domestic agency rules, the National Minimum Wage, licensing of gangmasters, and action against serious labour exploitation. This is a body that will investigate and fine the following:

• Working time;
• Holidays;
• Pay;
• Sick pay;
• Agency rules; and
• Discriminatory practices against migrant workers.

The aim is that the introduction will reduce confusion amongst workers and employers in regard to important employment issues and provide a single point of contact.

Steps to Take: There is no action required for employers yet, as although the Government has proposed the introduction of the Fair Work Agency in April 2026, it is currently unclear when their enforcement powers will come into force. Employers should be aware this is on the horizon though.

You can read more about this in our article here: Fair Work Agency Established.

Changes to Unions

In April 2026, it is intended that there will be a simplifying of the trade union recognition process, a power will be provided to enable Ministers to issue affirmative secondary regulations to vary the 10% threshold, within parameters of 2% to 10%. Furthermore, Unions would only need a simple majority of those voting in trade union recognition ballot.

Steps to Take: The practical steps for employers to prepare include:

• Review your Trade Union Relationships;
• Check any collective bargaining agreements and set them on the agenda;
• Engage with trade unions and work force about their priorities.

Engaging in a proactive dialogue with employees and Trade Unions will help to ensure their relationships remain collaborative in advance of the changes. Employers should also ensure that they are monitoring the statutory guidance closely and ensuring that relevant agreements are updated accordingly.

You can read more about the changes to be made here: Trade Union Recognition.

If you would like to discuss anything contained in this blog or help with reviewing your leave policies, please contact a member or the Employment team.

To find out what other aspects of employment law are affected by the Employment Rights Act, read our blog “The Employment Rights Act – When to expect change”.

We publish blogs and social media posts to give a general overview of legal and commercial issues, relevant at the time of publication, which we hope you will find interesting. Please note that legal rules often change depending on the specific facts of a situation. The law also changes over time following changes in legislation or new court cases. We do not actively update our blogs or posts once they are published to reflect changes in the law.