26 | TECHNICAL
Countdown to April: the changes that will affect you T he Employment Rights Act (ERA) 2025 isn’t a reform where everything changes overnight. While some early employee had three ‘waiting days’ off sick, and only if they earned at least the lower earnings limit (LEL). Those eligibility rules will now be swept away. From 6 April payroll providers may wish to proactively warn clients about the expected increase, to prevent misunderstandings.
measures took effect immediately upon Royal Assent in December 2025, April 2026 marks the first point at which substantial changes to day-to-day payroll processes become necessary. This article examines what changes in April 2026 under the Act and what those changes mean in practice for payroll. Pre-April 2026 Although April 2026 marks the first major operational shift, the ERA has already begun to take effect following Royal Assent in December 2025. Among the earliest changes were the repeal of the Strikes (Minimum Service Levels) Act
2026, SSP entitlements will start from the first qualifying day of sickness absence, without any waiting days. Consequently, an absence of a single day will now trigger SSP. At the same time, the removal of the LEL means all employees will be eligible for sick pay regardless of their weekly earnings. However, the previous limit has, in effect, been supplanted by a new rule which mitigates the effect of the limit’s removal: SSP will now be paid at the lower of the standard flat rate (£123.25 per week for 2026/2027) or 80% of the employee’s weekly pay. The removal of the LEL will increase
These changes are straightforward in theory but have significant practical implications. Paying SSP from day one is likely to make established workflows more delicate, due to the day-one right and higher numbers of staff being eligible. Payroll teams will have to liaise “These changes are straightforward in theory but have significant practical implications”
2023 and the rollback of key provisions of the Trade Union Act 2016, simplifying industrial action procedures and removing the ten-year ballot requirement for political funds. These changes were the first wave of reforms under the Government’s broader intent to rebalance workplace rights and reduce procedural barriers for employee representation. Statutory sick pay (SSP) The most significant April 2026 change for pay professionals is to SSP. Under the old rules, SSP kicked in only after an
the overall number of cases where SSP will need to be paid. It’s critical
that payroll systems which previously automatically skipped SSP calculations for these staff members are updated to account for this. Businesses that don’t could be walking into a minefield of potential claims. Finally, Payroll Managers who process wages on behalf of multiple clients may end up fielding questions about the changes and increased frequency of SSP line items. Where they haven’t already,
closely with human resources (HR) and line managers to pre-emptively update established systems and reporting processes.
Paternity and parental leave At the same time, April 2026 will also bring significant updates to family-related leave entitlements. Previously, employees
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