UK employment law is going through some significant changes, with new rights affecting family leave and Statutory Sick Pay (SSP) having been introduced earlier this year, and further changes planned for 2027.
The changes, which have been introduced by the Employment Rights Act 2025, are designed to provide increased financial support for employees who are unwell and to make family leave more accessible, particularly for those who have recently started a new job.
The main changes are as follows:
Statutory Sick Pay
On 6 April 2026, the three ‘waiting days’ requirement was removed. As a result, SSP is now payable from the first full day of sickness absence rather than the fourth day.
Also on 6 April 2026, the Lower Earnings Limit was removed, meaning that eligible employees can now qualify for SSP regardless of how much they earn. This is particularly significant for people working part-time, irregular hours, or in lower-paid roles.
There has also been a change to the way SSP is calculated. SSP is now paid at 80% of the employee’s average weekly earnings or the statutory weekly rate of £123.25 (for 2026/2027), whichever is lower.
While these changes are good news for employees, it is likely to mean additional costs for employers, particularly those who experience a lot of short-term sickness absence.
Paternity leave has become a day-one right
Before 6 April 2026, employees needed to have 26 weeks of continuous employment to qualify for statutory paternity leave (which is a maximum of two weeks’ leave).
This has now changed to become a “day one” employment right, provided the other eligibility and notice requirements are met.
This means that new starters have greater access to paternity leave (although they may not qualify for statutory paternity pay as that still requires the 26-week qualifying period).
Employees can also now take statutory paternity leave after taking Shared Parental Leave, which was not previously permitted.
Parental leave has become a day-one right
Statutory parental leave also changed at the same time. Previously, an employee needed one year’s continuous service before qualifying for unpaid parental leave.
From 6 April 2026, that qualifying period has been removed, making it another day-one employment right. From the start of employment, employees can now take up to 18 weeks of unpaid parental leave (per child and before the child’s 18th birthday) to care for the child or to support their wellbeing. The normal limit of four weeks per child per year remains, unless the employer agrees otherwise.
This gives more parents the ability to take protected time away from work to care for their children without having to wait until they have been with an employer for a year.
Although the leave is unpaid, the change could be particularly helpful for employees who change jobs while their children are young and previously would have lost access to the right until they built up sufficient service again.
Stronger protection against dismissal during and after family leave
Currently, pregnant employees and some new parents have special protection in redundancy situations. This includes the right to be offered a suitable alternative vacancy, where one exists, ahead of employees who do not have the same protection.
The Government is looking to go further than this with plans to make it unlawful to dismiss pregnant employees and those on or returning from maternity leave except in specific restricted circumstances.
These changes are planned for 2027, although the Government has not yet finalised the details. It is likely that the new laws will affect dismissals relating to conduct, capability, and other workplace issues. Employers will face a much higher bar when it comes to demonstrating that a dismissal is lawful if it takes place during the protected period. It is also likely that the change will cover other types of family leave, not just maternity leave.
Once the changes are implemented, it will be key for employers to consider whether the employee concerned is on family leave or has recently returned and make sure their rights are considered from the outset rather than as an afterthought.
The proposed changes are intended to give employees greater confidence to take family leave without being disadvantaged. The challenge for employers will be balancing those rights with the reality that businesses sometimes need to make difficult staffing decisions. Getting the process right, treating people fairly, and knowing when to seek advice will be more important than ever.
Bereavement leave changes
Some important changes relating to bereavement leave will be introduced in 2027. Find more information on the changes here.
What should employers do?
The above changes give greater rights to employees in an ever-changing employment landscape. It is recommended that employers:
- Update payroll systems to reflect the SSP changes;
- Update policies and processes to make sure they keep pace with the changes;
- Communicate changes to staff to help ensure compliance and support a positive working environment;
- Train line managers to ensure they understand the new rules and how to apply them; and
- Keep records of business decisions for dismissals and any alternatives considered.
If you have questions or concerns about family leave, please contact Sarah Garth.
For further information please contact:
