If you’re running a small or medium-sized business right now, you don’t need anyone to tell you that things feel heavy. Between unpredictable economic conditions, continued global uncertainty, and the ripple effects of the conflict in the Middle East, employers are juggling more than ever.
And just when you think you’ve caught your breath, along comes a new wave of legislation to get to grips with. We’ve known about the Employment Rights Bill for a while now, but it’s now the law.
Here’s our previous blog on this topic.
The changes taking effect from April 2026 under the new Employment Rights Act 2025, formerly the Employment Rights Bill. Some measures are already in force; others will take effect later in 2026 and 2027.
But for today, we’re focusing on what’s right in front of you, the changes that begin next month.
- Day-One Rights for Paternity Leave and Unpaid Parental Leave
Historically, employees had to reach certain milestones before they were eligible for family-related leave. That’s changing and quite significantly.
From 6 April 2026, employees will be able to take:
- Paternity leave from day one of employment (previously required 26 weeks’ service)
- Unpaid parental leave from day one (previously required 1 years’ service)
This is a substantial shift and one that may require you to update policies, onboarding materials, and payroll systems.
If your employee becomes newly eligible for paternity leave under the new rules and their baby is due between 5 April and 25 July 2026, they only need to give 28 days’ notice (instead of the usual 15 weeks).
From 26 July 2026, the standard notice period returns.
However, please remember these changes apply to leave, not pay. The rules for statutory paternity pay remain unchanged.
For employers already managing tight staffing levels, this increased flexibility for employees may feel like yet another plate to spin. But with clear internal processes and early communication, it’s manageable.
We have a great payroll department that is guiding many of our clients through these complex changes. If you would like to learn more about our payroll department, please email our payroll manager, Nichola Rixon.
- Bereaved Partner’s Paternity Leave
This is one of the Act’s most compassionate additions.
If the mother or primary adopter dies, the surviving father or partner will now be entitled to up to 52 weeks of bereaved partner’s paternity leave, to be taken within the first year after the birth or adoption.
Key points:
- This is a day-one right (no length of service required).
- Whether the leave is paid is entirely at your discretion.
This is an emotionally sensitive situation for everyone involved, and while it’s not likely to happen frequently, it’s important for your policies to reflect this new right so you’re prepared if needed.
- Statutory Sick Pay (SSP): Big Changes for Employers
SSP is undergoing some of the most impactful updates, particularly for SMEs.
Here’s what changes from April 2026:
- SSP will be payable from day one of sickness, removing the current four-day waiting period.
- The lower earnings limit is being scrapped, meaning lower-paid employees will become eligible for SSP for the first time.
- SSP will now be calculated as the lower of:
- 80% of the employee’s average weekly earnings, or
- The flat rate
- The flat rate rises from £118.75 to £123.25 on 6 April 2026.
For small businesses, this may entail additional costs and administrative pressure, especially given that sickness levels remain unpredictable across many sectors.
Anticipating changes and updating forecasting models can help mitigate risks. Please reach out to your usual manager if you require assistance with any forecasts.
- Collective Redundancy: Increased Protective Awards
If your business ever faces the prospect of collective redundancies, the stakes have now increased.
The maximum protective award compensation for failing to properly consult employees has doubled:
- From 90 days’ pay to 180 days’ pay
This reinforces how crucial it is to follow the rules of collective consultation correctly.
If this is an area you’ve never had to deal with before, now might be a good time to familiarise yourself with the requirements or identify external HR/legal partners who can support you if needed. We can make recommendations if you need any.
5. Whistleblowing: New Protection for Reporting Sexual Harassment
Workers who raise concerns about sexual harassment will now benefit from the same whistleblowing protections already in place for other serious wrongdoing.
That means protection from:
- Detriment, and
- Unfair dismissal
For employers, this is an opportunity to:
- Revisit your whistleblowing and anti-harassment policies
- Ensure your reporting processes are safe, transparent, and accessible
- Strengthen your workplace culture around accountability
So What Should SMEs Do Now?
You don’t need to overhaul everything overnight, but you should begin putting the right foundations in place.
Here are some practical steps:
- Review and update your policies, especially those relating to:
- Paternity leave
- Bereavement leave
- Sickness and SSP
- Whistleblowing
- Redundancy consultations
Final Thoughts
It’s completely understandable if these changes feel like “one thing too many” right now.
The world is uncertain enough as it is. But the good news is that with the right guidance, a bit of forward planning, and a bit of tweaking, you should be in a good position.
We are here for you, so if you want to discuss this topic further, please email your normal manager.
You can find further information on this topic on the ACAS website here. ACAS also offers good training programmes if you want to train your internal team.