The Employment Rights Bill: What Employers Need to Know for April 2026

As the UK Government continues its efforts to modernise employment law, the Employment Rights Bill is nearly at the stage of receiving Royal Assent, which is expected this Autumn, with some of its provisions taking effect from April 2026. These forthcoming reforms represent the most comprehensive update to UK employment law in recent years, and employers should begin preparing for the changes ahead.

To help employers stay ahead of the changes, MBM Commercial is hosting a live webinar on Thursday 30th October, led by our Hannah Roche, Partner and Head of Employment Law and Chris Scobie, Associate.

Ahead of the Webinar, below is an up-to-date summary of the most relevant April 2026 changes that employers should prepare for.

Strengthening Family-Friendly Rights

The Employment Rights Bill effects a significant expansion of support for parents and carers, introducing several new day one rights that remove existing qualifying periods and strengthen job protection during and after family-related leave.

Paternity & Parental Leave

• Paternity leave will become a day one entitlement, removing the current 26-week continuous service requirement under the Employment Rights Act 1996.
• Parental leave (up to 18 weeks unpaid leave per child under 18) will also be available from day one of employment, removing the existing one-year qualifying period.
• The sequencing rule that currently requires paternity leave to be taken before shared parental leave will be abolished, offering families greater flexibility in structuring time off.

Increase to the Collective Redundancy Protective Award

The Bill doubles the maximum protective award payable for failure to properly consult in a collective redundancy situation from up to 90 days’ actual pay to up to 180 days’ actual pay per affected employee. This reflects a policy shift towards stronger collective consultation and worker protection.

Reforms to Statutory Sick Pay (SSP)

The Bill seeks to modernise SSP to make it fairer and more inclusive, particularly for those in temporary, part-time, or low-paid work.

Key reforms:

• Day-one entitlement: SSP will be payable from the first day of absence, removing the current three-day waiting period.
• Removal of the lower earnings limit: The current threshold (£125 per week) will be abolished, ensuring all workers can access SSP.
• Pro-rated payments: Workers earning below the current threshold will receive 80% of their average weekly earnings if this is lower than the statutory SSP rate.
• Improved enforcement: Responsibility for SSP enforcement will transfer to the new Fair Work Agency (FWA)- see below - to ensure consistency and accountability.

Additional Whistleblowing Protections

The Bill significantly expands whistleblowing protections in light of growing scrutiny over how employers handle sexual harassment and misconduct disclosures.

Key changes include:

• The definition of a “protected disclosure” will explicitly include reports of sexual harassment or related misconduct.
• This is, arguably, just a clarification of the law but will mean that awareness is raised and that employees who report sexual harassment will be protected from being dismissed or subject to a detriment for reporting the issue (i.e. they will be given the same protection as other whistle-blowers).

Establishment of the Fair Work Agency (FWA)

A central reform under the Bill is the creation of a new Fair Work Agency (FWA), a single enforcement body consolidating functions currently held by multiple regulators such as HMRC, the Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate.

Expected to launch in April 2026, the FWA will:

• Act as a central point of contact for workers and employers on employment rights and compliance.
• Streamline enforcement and provide consistent guidance across pay, working time, and leave entitlements.
• Possess enhanced investigatory and sanctioning powers, including civil penalties, compliance orders, and public naming for serious breaches.
• Coordinate national campaigns and data-sharing initiatives to tackle non-compliance across sectors.

Addressing Gender Pay Gaps & Supporting Menopause

The Bill reinforces the Government’s ongoing commitment to equality and inclusion in the workplace.

Gender Pay Gap Reporting

• Employers will be encouraged to publish narrative explanations and action plans alongside pay gap data to demonstrate progress and transparency. From April 2026, this will be voluntary, becoming mandatory for larger employers in 2027.

Menopause Support

• The Bill encourages adoption of formal menopause policies addressing awareness, reasonable adjustments, and flexible working.
• If voluntary adoption remains low, such policies may become mandatory in future phases, and for larger employers will be made mandatory in 2027.
• Managerial training and open discussion around menopause are highlighted as key best practices for wellbeing and retention.

What now?

The Employment Rights Bill marks the most extensive update to UK employment legislation in decades. By focusing on fairness, inclusion, transparency, and accountability, it reshapes the framework within which employers engage their workforce. The first phase of changes (referred to above) are coming into force in April 2026. Further, and more significant, changes will be coming into force in October 2026 and in 2027 such as “day one” unfair dismissal, new rules on firing and rehiring, further strengthening of the law around sexual harassment, and more family friendly rights.

For employers, the message is clear: preparation should start now. Begin by reviewing your policies, updating contracts and systems, and investing in training. As a first step, we encourage you to join our webinar on 30 October, as a reminder please click the link above to register to join.