UK Introduces Day-One Sick Pay and Family Leave Rights April 6, 2026

Statutory Sick Pay Reforms

The Employment Rights Act 2025 eliminates the three-day waiting period for statutory sick pay (SSP) effective April 6, 2026. Employees will now receive full payments from the first day of illness, with the weekly rate increased to £123.25 from £118.75. The lower earnings limit for SSP eligibility has been removed, ensuring all employees qualify for the benefit. For lower earners, payments will be the lower of the prescribed rate or 80% of their normal weekly earnings. Employers must update payroll systems, with guidance provided by the Fair Work Agency. The reforms are expected to impact sectors with high numbers of low-wage workers, such as retail and hospitality.

Day-One Family Leave Rights Introduced

Day-one family leave rights are introduced under the Employment Rights Act 2025, allowing paternity leave and unpaid parental leave from the first day of employment. Paternity leave has been temporarily reduced to 28 days (from 15 weeks), with new claims eligible from February 18, 2026. Bereaved partners’ paternity leave allows up to 52 weeks of leave if the mother or primary adopter dies within the child’s first year. These changes aim to support new parents regardless of job tenure, particularly in industries with high employee turnover. The Trades Union Congress (TUC) estimates over 500,000 new parents will benefit from this reform.

Collective Redundancy Protections

The Act introduces collective redundancy protective awards to deter violations of mass layoff procedures. Employers failing to comply with redundancy consultation requirements face a maximum penalty of 180 days’ pay, double the previous 90 days’ limit. The Fair Work Agency, established in 2025, oversees enforcement, including mediating disputes, providing compliance guidance, and imposing penalties. The agency will also launch a public awareness campaign to educate employers and workers about their rights, with streamlined processes for reporting violations.

Enhanced Recordkeeping and Voluntary Measures

Employers must now maintain holiday pay records for six years to demonstrate compliance with labor standards. Businesses are encouraged to develop voluntary action plans on gender equality and menopause support, guided by the Equality and Human Rights Commission (EHRC). Additional reforms, such as flexible working rights and protections for zero-hours workers, are scheduled for implementation in October 2026 and 2027, respectively. The phased rollout has raised concerns among labor unions about delayed protections for vulnerable workers.

Statutory Rate Increases

Statutory rates like the National Minimum Wage and family-related pays increase from April 1, 2026. The National Minimum Wage for workers aged 23 and over rises to £11.44 per hour, up from £10.42, while the rate for workers aged 18-20 increases to £10.42 (from £9.50). These adjustments are part of the government’s economic strategy to address inflation. The Fair Work Agency will simplify enforcement of new protections, including standardized reporting requirements and enhanced support for workers filing grievances.