The Employment Rights Act: What Your Business Should Have Done By Now
27 May 2026 · By Oliver Tasker
The Employment Rights Act is no longer a distant problem for the future. We have officially entered the first major phase of implementation, and the expectation is clear: businesses should already have taken action.
While the most talked-about headline reforms (like the overhaul of unfair dismissal) aren't landing until January 2027, several critical compliance shifts went live in April 2026.
If you haven’t audited your employment contracts or payroll processes lately, you are likely carrying immediate legal risk. Let’s break down exactly where your business needs to be now.
The Timeline So Far: What’s Already Live?
The Act is rolling out in stages rather than a single "go-live" date. Here is what has already changed over the last few months:
February 2026 (Trade Union Reforms): Industrial action protections were tightened, making dismissals for participating in industrial action automatically unfair, alongside simplified union processes.
April 2026 (The Big Employer Shift): This was the first major wave of day-one rights and compliance updates for standard businesses.
7 April 2026 (The Fair Work Agency Launch): A brand-new enforcement body is now active. This isn’t a passive organisation-the Fair Work Agency has the power to proactively investigate businesses and enforce compliance on statutory sick pay and holiday pay.
The Crucial "Day-One" Rights (From 6 April 2026)
The biggest immediate operational impact stems from the changes introduced on 6 April. Several key rights now apply from an employee's very first day on the job:
Statutory Sick Pay (SSP): The waiting days and lower earnings thresholds are gone. SSP is now payable from day one of sickness for all eligible staff.
Family Leave: Both paternity leave and unpaid parental leave have officially become day-one rights.
Redundancy Penalties: If you fail to consult properly on collective redundancies, the maximum penalty has doubled to 180 days’ actual gross pay per employee.
Whistleblowing: Sexual harassment claims are now officially classified as a 'qualifying disclosure' under whistleblowing law.
Your 4-Point Compliance Checklist
To ensure your business isn't exposed to a risk of a tribunal claim or an audit by the new Fair Work Agency, you should have already completed the following four steps:
1. Contract & Policy Updates
Because employment contracts must be issued on or before an employee's first day, your documentation needs to immediately reflect the new day-one SSP rules (ensure you have updated your absence reporting processes too) and updated family leave wording. Outdated templates mean non-compliance.
2. Payroll Alignment
Your payroll systems must be actively configured to calculate SSP from day one of absence, regardless of how much the employee earns, and track leave entitlements flawlessly from their start date.
3. Manager Training
Your line managers are your first line of defence. They need to understand how to handle sickness absences proactively and the vital importance of following your procedures-especially as we prepare for deeper unfair dismissal changes at the start of 2027.
4. A Proactive Risk Review
With the enforcement landscape shifting, you should already be reviewing your reliance on zero-hours contracts, casual workers, and current flexible working practices to see where your vulnerabilities may lie.
Catching Up Before the Next Wave
If you read through that checklist and realise that your business is falling behind, don’t panic. You aren't the only business owner playing catch-up, but you should act now.
Think of the April changes as the baseline. Getting your contracts updated, your payroll adjusted, and your managers trained now is the only way to safeguard your business before the even larger legislative shifts arrive later this year and in early 2027.
Let's Ensure You’re Covered
If you want an expert eye to review where your business currently stands, ensure your contracts are watertight, and protect you from compliance risks, let's talk.
Call Oliver directly: 01522 776270
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