UK Employment Rights Act 2025: Day-One Rights, SSP Reform, and Key Changes from 6 April 2026

The Employment Rights Act 2025 received Royal Assent in late 2025 and introduces the most significant changes to UK family leave and sick pay entitlements in over a decade. From 6 April 2026, a series of reforms take effect that expand rights to paternity leave, parental leave, sick pay, and introduce a new entitlement to neonatal care leave. These changes reflect the government's intention to strengthen family-friendly employment practices and improve protection for working parents. Employers must revise policies, systems, and record-keeping procedures to comply with the new regime.

Day-One Paternity Leave and Unpaid Parental Leave

The most significant shift in the Act is the removal of the 26-week service requirement for both paternity leave and unpaid parental leave. Under the previous regime, employees had to have completed 26 weeks of continuous service before they qualified for either benefit. From 6 April 2026, both rights become available from the first day of employment.

Day-one paternity leave allows eligible fathers or partners to take up to two weeks of leave following the birth of a child or placement for adoption. This is unpaid leave unless the employer provides contractual paternity pay or the employee qualifies for statutory paternity pay. Unpaid parental leave, sometimes called ordinary parental leave, permits eligible parents to take up to four weeks of unpaid leave per child during the child's first five years. Both entitlements now apply regardless of how long the employee has worked for the employer.

The removal of the service requirement reflects a policy objective to support working parents from the outset of employment. New workers, particularly younger employees early in their careers, now receive immediate protection for time away from work to support childcare responsibilities. This change particularly benefits workers in high-turnover sectors such as retail and hospitality, where many employees would previously not have completed 26 weeks of service before needing leave.

However, employers retain the right to postpone leave if they can demonstrate that granting leave would cause substantial detriment to business operations. The threshold for postponement is high and requires genuine operational necessity, not mere inconvenience. Employers must document their reasons for postponement and confirm alternative dates within a reasonable timeframe.

Statutory Paternity Pay from Day One

An important distinction exists between paternity leave entitlement and statutory paternity pay. While paternity leave is now a day-one right, statutory paternity pay continues to have a qualifying period. However, this distinction deserves careful attention. The legislation creates an asymmetry that employers and HR professionals must manage carefully.

Day-one paternity leave permits employees to take leave, but not all employees will qualify for statutory payment of that leave immediately. Some employers will provide contractual paternity pay from day one, extending payment rights beyond statutory minimums. Others will not. Where an employee takes paternity leave but does not qualify for statutory pay, the leave may be unpaid unless the employment contract provides otherwise. Employers should clarify this in contracts and handbooks to avoid misunderstanding.

Bereaved Partner's Paternity Leave: A New Entitlement

The Act introduces a new form of family leave with no modern precedent in UK law: Bereaved Partner's Paternity Leave (BPPL). Under this provision, fathers or partners who lose their partner during pregnancy or within the child's first year of life are entitled to up to 52 weeks of leave. This entitlement acknowledges the devastating circumstances families face when a parent dies and recognizes that remaining parents may require extended time away from work to manage grief, childcare, and practical arrangements.

The leave is available to fathers and non-biological parents in same-sex partnerships. The qualification rules are complex and relate to the circumstances in which the child remains in the care of the surviving parent. Employers should familiarize themselves with these rules, as claims for BPPL may be emotionally sensitive and require compassionate administration. The leave may be taken flexibly, and employers cannot force all leave to be taken in one continuous block.

Statutory Sick Pay Reform: Elimination of Waiting Days

The most substantive reform to sick pay in decades is the removal of the three-day waiting period before statutory sick pay (SSP) becomes payable. Under the previous regime, employees had to be absent from work for three consecutive days before SSP qualified. This meant many short-term illnesses went uncompensated, creating pressure on workers to return to work whilst unwell and risking transmission of illness to colleagues.

From 6 April 2026, SSP is payable from the first day of sickness absence. This change applies to all new absences from 6 April onward. Employees can notify their employer that they are ill and immediately qualify for statutory payment after satisfaction of the employer's notification requirements. The notification deadline remains unchanged; employers may require notification by a specified time on the first day of absence, typically before the start of the working day.

The elimination of waiting days will increase SSP costs for employers, particularly in sectors with high short-term absence rates. However, employers can offset some costs through lower overall absence rates if employees can access immediate payment and therefore do not face financial pressure to work whilst unwell. In industries with significant illness-related absenteeism, such as healthcare and hospitality, the policy change may drive operational improvements as employers invest in occupational health and flexible working arrangements.

Statutory Sick Pay and the Earnings Threshold

The Act also removes the Lower Earnings Limit (LEL) for SSP qualification. Previously, employees earning below a threshold of approximately £125 per week did not qualify for SSP. This excluded low-wage workers from statutory sick pay protection, forcing them to choose between working whilst unwell or losing income. From 6 April 2026, all employees are entitled to SSP regardless of earnings level, provided they satisfy other qualification requirements such as notification and continuity of employment.

The removal of the LEL reflects a policy judgment that sick pay should be universal rather than limited to higher earners. Low-wage workers, often employed in precarious sectors, face the greatest hardship if absent without pay. Universal SSP access supports public health by enabling ill workers to remain home without fear of income loss. The practical effect is to extend SSP to approximately 500,000 workers who previously fell below the threshold.

Statutory Sick Pay Rate and Payment Calculation

From 6 April 2026, the weekly rate of SSP increases to £123.25. This rate applies to illnesses lasting one week or more. The calculation of SSP depends on average weekly earnings. SSP is paid at the lesser of the statutory rate (£123.25) or 80 percent of average weekly earnings, calculated over the eight weeks preceding the first day of sickness absence. For employees with low or fluctuating earnings, the 80 percent calculation may yield lower payment than the statutory rate.

Employers calculate average weekly earnings by dividing the employee's gross pay (excluding certain benefits) during the eight-week reference period by eight. Weeks in which the employee was not required to work do not count toward the average. This methodology can produce unexpected results where employees have had holidays, unpaid leave, or suspension during the reference period. Employers should document these calculations carefully and consider challenging complex cases through HMRC guidance.

Neonatal Care Leave: A New Family Leave Right

The Act introduces an entirely new leave entitlement: neonatal care leave. This right permits parents (either mother or father) of children requiring prolonged hospitalization in neonatal intensive care or special care units to take leave to remain with the child during treatment. The leave is available from day one of employment, recognizing that neonatal stays are traumatic and support during treatment is essential.

Eligible parents can take up to 12 weeks of neonatal care leave, provided the child has been in hospital care for at least seven consecutive days. The leave is paid at £194.32 per week from 6 April 2026 (the same rate as statutory maternity pay and adoption pay). The payment is calculated at the lesser of the statutory rate or 90 percent of average weekly earnings.

Neonatal care leave fills a significant gap in UK family support. Parents whose children are hospitalized in neonatal units previously had no statutory right to take time away from work without jeopardizing employment or income. The new right acknowledges both the emotional needs of parents and the clinical benefits of parental presence during hospitalization. Employers must be prepared to receive applications for neonatal care leave and to calculate qualifying periods and payment rates accurately.

Increases to Statutory Pay Rates from April 2026

The government regularly reviews and increases statutory pay rates in line with inflation. From 1 April 2026, several statutory payments increase significantly. Statutory Maternity Pay and Statutory Adoption Pay rise to £194.32 per week (the cap for these payments). This rate also applies to neonatal care leave from the same date. Statutory Paternity Pay also increases to £194.32 per week for qualifying employees.

These increases reflect the government's commitment to supporting working families through improved statutory payments. However, increases to statutory rates impose costs on employers, particularly small businesses that employ many women of working age or staff with family responsibilities. Some employers may need to adjust budgets for statutory pay liabilities, particularly in female-heavy sectors such as healthcare, social care, and education.

National Living Wage and Minimum Wage Rates from April 2026

Coinciding with the April 6 employment rights changes, the government increases the National Living Wage (NLW) and National Minimum Wage (NMW) rates. The NLW for workers age 21 and above rises to a new rate reflecting inflation since the previous rate was set. Apprentice minimum wage and minimum wage rates for younger workers also increase accordingly. Employers must update wage calculations for all affected employees and ensure payroll systems reflect the new rates from the first payroll date on or after 1 April 2026.

Gender Pay Gap Reporting Deadline: 30 March 2026

The public sector gender pay gap reporting deadline occurs on 30 March 2026, one week before the April employment rights changes. Public authorities with 250 or more employees must file gender pay gap reports with the Equality and Human Rights Commission. Delayed reporting attracts penalties. Employers should complete calculations and submissions well ahead of the deadline to avoid last-minute processing failures. The 2026 gender pay gap reports will be the first to reflect any impact of the employment rights changes announced in the autumn 2024.

Employer Implementation: Practical Steps

Employers should take the following steps before 6 April 2026. First, update employment contracts and staff handbooks to reflect day-one paternity and parental leave rights and removal of service requirements. Second, revise sick pay policies to reflect immediate SSP entitlement from day one and removal of the LEL. Third, implement new payroll procedures to calculate SSP without waiting periods and to track neonatal care leave and BPPL eligibility.

Fourth, train HR and payroll staff on the new rules, particularly the calculation of SSP when earnings vary and the identification of qualifying neonatal care scenarios. Fifth, update absence management procedures to record the date of first absence for SSP calculation purposes and to manage postponement requests where business detriment can be demonstrated. Sixth, update national minimum wage payroll rates and ensure all employees receive the new rates from 1 April. These implementation steps require planning but are necessary for compliant administration of the new rights.