Employment Rights Act 2026: what small employers need to know

The Employment Rights Act is the biggest shake-up of UK employment law in years, and several changes landed in 2026. Here's a plain-English summary of what matters most for small employers — and what to do about it.

Statutory Sick Pay is now a day-one right

You can no longer wait until the fourth day of absence to start SSP, and the lower earnings limit has been removed — so more employees qualify, from day one. Update your sickness policy and payroll to reflect this.

Family leave from day one

The old qualifying periods for paternity leave and unpaid parental leave have been removed, making them day-one rights. Remove any length-of-service conditions from your family-leave policies.

Tougher enforcement

A new Fair Work Agency began operating in April 2026 and can take action against employers for breaches of employment rights. The maximum protective award for getting collective redundancy consultation wrong has doubled. In short: process matters more than ever.

Harassment protections strengthened

Building on the 2024 duty to prevent sexual harassment, disclosures about sexual harassment can now qualify as protected whistleblowing — so employees who raise concerns are protected from retaliation.

Coming next

Further changes are phased in beyond 2026 — most notably, the qualifying period for ordinary unfair dismissal is set to fall from two years towards a much shorter period. The direction of travel is clear: build fair, well-documented processes now, and you'll be ready.

What small employers should do

Review your contracts, sickness and family-leave policies and your disciplinary process against the new rules. Out-of-date documents are a real risk. Our Complete UK HR Toolkit is written around the current 2026 position, so you can update everything in one go.

This guide is general information, not legal advice. For significant or contentious matters, seek advice from a qualified employment-law professional or ACAS (0300 123 1100).

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