Employment Rights Act 2026: Practical Compliance Checklist for UK Employers

Last reviewed: 2 May 2026

The Employment Rights Act 2026 employer checklist below addresses the most significant package of UK employment law reforms in a generation. A first wave of measures took effect on 6 April 2026, introducing day-one paternity and unpaid parental leave rights, expanding statutory sick pay eligibility, and doubling the maximum collective redundancy protective award. Further phased changes covering fire-and-rehire restrictions, tipping practices and additional consultation obligations are expected through October 2026 and into 2027. This guide provides HR managers, general counsel and SME owners with a single, practical resource: ten immediate compliance actions, a legislative timeline, sample contract language, payroll worked examples and a staged implementation planner, everything needed to meet the new employer obligations UK 2026 demands.

Quick Action Checklist, 10 Immediate Steps for the Employment Rights Act 2026

Use this numbered list as your starting point. Each action links to a detailed section below. Industry observers expect enforcement activity to focus first on the measures already in force, so prioritising these steps now reduces tribunal exposure.

1. Update employment contracts. Revise clauses covering paternity leave, unpaid parental leave and the probationary period to reflect day-one entitlements and the new qualifying period. Issue contract variation letters to existing staff.
2. Reconfigure payroll for SSP. Remove the lower earnings threshold and the three-day waiting period from your payroll software. Run parallel test calculations before the next pay cycle.
3. Amend parental leave policies. Rewrite the employee handbook to confirm that paternity leave and unpaid parental leave are available from the first day of employment, no qualifying service period required.
4. Recalculate redundancy budget models. The maximum collective redundancy protective award period has been doubled. Update financial models and briefing packs used by senior management when considering restructures.
5. Issue staff communications. Send an all-staff email (or intranet notice) summarising the changes, directing employees to the updated handbook and confirming the new paternity notice form.
6. Train line managers. Brief managers on day-one rights, the revised probation procedure and correct absence-reporting steps under the expanded SSP rules.
7. Test payroll output. Process a dry run for at least three employee profiles (full-time, part-time and a new starter) to confirm that SSP and parental pay calculations are correct.
8. Review disciplinary and probation procedures. Align your dismissal process with the shorter qualifying period for unfair dismissal claims and document performance concerns from day one.
9. Audit record-keeping. Confirm that absence records, consultation logs and payroll data are stored for a minimum retention period that supports a potential tribunal claim window.
10. Schedule forward-looking reviews. Diarise reviews for October 2026 and Q1 2027 to address phased measures (fire-and-rehire code, tipping obligations, further consultation requirements) as commencement regulations are published.

Overview and Timeline of Key Employment Rights Act 2026 Measures

The Employment Rights Act 2026 implements the Government’s Plan to Make Work Pay. Rather than a single “big bang” commencement, the reforms are being introduced in phases. The table below summarises the measures already in force and those with confirmed or anticipated dates, drawn from the official GOV.UK implementation timeline.

Employers should treat the 6 April 2026 items as immediate obligations. The later phases remain subject to commencement regulations, so the practical advice is to monitor the GOV.UK timeline page and build flexibility into compliance project plans.

Contracts, Handbooks and Policies, How to Update Employment Contracts 2026

Contractual documentation sits at the heart of this Employment Rights Act 2026 employer checklist. Every employer that uses written contracts of employment or an employee handbook will need to review, and in most cases amend, several key provisions.

Contract Clauses to Add or Replace

The following clauses should be reviewed as a priority. Where a clause references a qualifying service period that has now been removed or shortened, the wording must be updated to reflect the current statutory position.

• Paternity leave clause. Remove any reference to a 26-week continuous employment requirement. Replace with language confirming eligibility from day one: “You are entitled to paternity leave from your first day of employment, subject to providing the required notice in accordance with statutory requirements.”
• Unpaid parental leave clause. Similarly remove the previous one-year qualifying period. Confirm the entitlement from the start of employment: “Eligible employees may take up to 18 weeks of unpaid parental leave per child, available from the first day of employment.”
• Probationary period clause. Align the stated probation length with the new statutory framework and include a clear reference to performance-management steps that will be followed during the initial period.
• Sickness absence and SSP clause. Update to reflect that SSP is payable from the first qualifying day of absence (no waiting days) and that all employees, regardless of earnings level, are now eligible.
• Redundancy and consultation clause. Where contracts contain a summary of redundancy procedures, ensure that the protective award exposure is not understated; reference the current statutory maximum.

Handbook Updates and Sample Policy Language

The employee handbook is typically the first document staff consult. At a minimum, update the following sections:

• Family-friendly policies. Add a prominent note confirming day-one paternity rights 2026 and day-one unpaid parental leave. Include the revised notice requirements and a new request form template.
• Sickness absence policy. Remove any reference to the lower earnings limit and the three waiting days. State clearly: “SSP is payable from the first qualifying day of sickness absence for all employees.”
• Redundancy policy. Reflect the doubled protective award period and update the step-by-step consultation process to emphasise early engagement with employee representatives.

Employee Communications

Issuing a contract variation without explanation creates confusion and risk. Best practice is to send a covering letter or email that summarises what has changed, why (referencing the Employment Rights Act 2026), and what employees should do if they have questions. Retain a copy of the communication and any signed acknowledgements for your records. For employers covered by UK business compliance obligations, maintaining a clear audit trail is particularly important.

Pay and Payroll, Statutory Sick Pay Changes 2026

The statutory sick pay changes 2026 are among the most operationally disruptive of the April measures, because they require payroll system reconfiguration, not merely policy rewording.

What Has Changed

• Lower earnings threshold removed. Previously, employees earning below the lower earnings limit were ineligible for SSP. From 6 April 2026, all employees qualify regardless of earnings.
• Three-day waiting period removed. SSP is now payable from the first qualifying day of sickness absence, rather than the fourth.

Payroll Action List

1. Contact your payroll software provider to confirm that the April 2026 SSP update has been applied.
2. Run test calculations for employees at different earnings levels (see worked example below).
3. Brief payroll staff on the new rules, especially the removal of the waiting-day deduction.
4. Update sickness reporting procedures so that line managers record the first day of absence accurately.
5. Review occupational sick pay schemes, if your company scheme tops up SSP, confirm whether the interaction has changed.

SSP Worked Example

These changes apply to all absences commencing on or after 6 April 2026. Employers should check Business.gov.uk for the current weekly SSP rate and update internal calculators accordingly.

Holiday Pay Records and Record-Keeping

While the primary payroll change centres on SSP, the reforms also reinforce the importance of accurate working-time and holiday-pay records. Maintain comprehensive records for a minimum of three years, this window aligns with the standard employment tribunal limitation period for unlawful deductions from wages claims.

Redundancy, Consultation and Collective Redundancy Protective Awards 2026

The doubling of the maximum collective redundancy protective award is one of the highest-impact changes for employers planning workforce restructures. This section of the Employment Rights Act 2026 employer checklist is critical for any organisation considering headcount reductions.

What Has Changed

From 6 April 2026, the maximum protective award period that an employment tribunal can order for failure to comply with collective redundancy consultation obligations has been doubled. This significantly increases the financial exposure for employers who do not follow the correct consultation procedure. For a deeper exploration of downsizing legal requirements, process and employee rights, see our dedicated guide.

Practical Consultation Checklist

• Trigger point. Confirm whether you are proposing to dismiss 20 or more employees at one establishment within a 90-day period, the statutory threshold for collective consultation.
• Notify the Secretary of State. File the HR1 form within the required timeframe (at least 30 days before the first dismissal for 20–99 redundancies; at least 45 days for 100 or more).
• Elect employee representatives. If there is no recognised trade union, arrange elections for employee representatives before consultation begins.
• Consult meaningfully. Provide written details of the reasons for redundancy, the numbers and descriptions of employees affected, the proposed selection criteria, the proposed method of carrying out dismissals, and the proposed method of calculating any redundancy payments.
• Document everything. Retain minutes, correspondence and decision records, tribunals scrutinise the quality of consultation, not merely its existence.

Protective Award Calculation Example

Under the doubled maximum, a tribunal can now award up to the new cap period of pay per affected employee. For an employer making 50 roles redundant with an average weekly pay, even a partial protective award can produce a substantial aggregate liability. Industry observers expect tribunals to use the increased maximum to penalise employers who treat consultation as a formality rather than a genuine process.

Probation, Dismissal and Dispute Processes, Probation Rules 2026

The New Probation Framework

The Employment Rights Act 2026 reforms the qualifying period for unfair dismissal protection. Early indications suggest that the combination of a shorter qualifying period and day-one rights will lead to a measurable increase in tribunal claims during the first year of employment. Employers should therefore treat probation as a structured, documented process rather than an informal “settling-in” period.

• Set clear objectives. Provide written performance objectives at the start of employment and review them at defined intervals (e.g. 4 weeks, 8 weeks, 16 weeks).
• Record concerns promptly. Any performance or conduct issues should be documented in writing at the time they arise, not compiled retrospectively if a decision to dismiss is made.
• Follow a fair process. Even during probation, a dismissal must follow a procedure that is broadly consistent with the ACAS Code of Practice on Disciplinary and Grievance Procedures. Failure to do so increases tribunal risk and may lead to an uplift in compensation.
• Retain evidence. Keep records of probation reviews, training provided, support offered and the employee’s response for at least 12 months after the end of employment.

ACAS Early Conciliation and Litigation Risk

Under the current rules, a prospective claimant must notify ACAS before issuing a tribunal claim. Employers who receive an ACAS early conciliation notification relating to a probationary dismissal should seek legal advice immediately. With the changes in worker protection trends intensifying, responding promptly and proportionately to early conciliation is more important than ever.

Enforcement, the Fair Work Agency 2026 and Tribunal Exposure

The Employment Rights Act 2026 paves the way for the establishment of the Fair Work Agency, a single enforcement body intended to consolidate the functions of several existing regulators. While its full operational launch is subject to further commencement regulations, employers should prepare now.

• Anticipated remit. The Fair Work Agency 2026 is expected to oversee enforcement of minimum wage compliance, working-time regulations, statutory sick pay obligations and certain aspects of agency worker rights.
• Proactive audit. Conduct an internal compliance audit covering pay records, working-time records and SSP calculations. Identify any gaps before the Agency becomes operational.
• Record retention. Maintain payroll, absence and consultation records for a minimum of six years where financial liabilities may arise, and three years for standard employment claims.
• When to contact legal counsel. If you identify non-compliance during an internal audit, or if you receive any communication from a regulatory body, seek specialist employment law advice before responding.

Implementation Planner, Employment Rights Act 2026 Employer Checklist in 30/60/90/180 Days

Use this planner to assign responsibility and track progress across your organisation. The likely practical effect of treating compliance as a phased project, rather than a one-off exercise, is that errors are caught early and tribunal risk is minimised.

Involve your payroll provider, HR business partners, line managers and, for larger organisations, in-house or external legal counsel at each stage. Compliance is a cross-functional exercise, and the Employment Rights Act 2026 touches every department that manages people.

Conclusion and Next Steps

The Employment Rights Act 2026 employer checklist set out above covers the critical compliance steps every UK employer should have completed, or should now be completing, following the 6 April 2026 commencement. The three highest-priority actions are: reconfiguring payroll for the statutory sick pay changes 2026, updating contracts and handbooks to reflect day-one parental entitlements, and recalculating redundancy exposure in light of the doubled protective award. With further phased measures expected through October 2026 and into 2027, this is not a one-off project but an ongoing compliance programme.

Employers who build a structured implementation plan now, assigning clear ownership, deadlines and review dates, will be best placed to manage tribunal risk and meet their evolving employer obligations UK 2026 and beyond.

Sources

1. GOV.UK, Plan to Make Work Pay and Employment Rights Act Timeline Update
2. Business.gov.uk, New Employment Rights: Guidance for Businesses
3. CIPD, Employment Law Changes 2026
4. Pinsent Masons, Employment Rights Bill Timeline 2026 and Beyond
5. Federation of Small Businesses, UK Employment Law Update 2026
6. Squire Patton Boggs, Employment Rights Act 2025 Checklist for October 2026
7. Make UK, 10 Point Plan 2026: Employment Rights Act HR To-Do List
8. WBW Solicitors, April 2026 Employment Law Changes Checklist
9. ACAS, Advisory, Conciliation and Arbitration Service