This year has brought some of the most significant changes to employment law in a long time. I’ve been talking to clients about these in detail over recent weeks, and I wanted to pull everything together in one place so you have a clear picture of what’s changed, why it matters and what you need to do about it.
Sick Pay Just Got More Expensive
From April, Statutory Sick Pay is now payable from day one. The waiting days have gone and lower earners are now eligible. On paper that sounds like a small tweak, but in reality it removes one of the natural deterrents to short-term absence. If your absence management is a bit loose, this is where it will start to cost you.
What tends to happen in businesses without proper structure is that patterns get missed, managers avoid conversations and absence increases without being challenged. With the new Fair Work Agency now actively enforcing employment rules — rather than waiting for tribunal claims — you also need an audit trail to show how you’ve managed absence. If you can’t evidence it, you’re exposed.
Your sickness policy should clearly set expectations and trigger points should actually be used. Return-to-work conversations need to happen every time, not just when it feels serious. Absence records need to be accurate, consistent and kept for at least six years. Managers need to feel confident addressing absence early, because once patterns set in they’re much harder to deal with. You also need to be able to distinguish between general sickness and disability-related sickness, as they require different approaches to avoid the risk of discrimination claims.
If you want to get this sorted, I can provide an updated sickness and absence policy that reflects the current rules and sets out a clear process for managers to follow. If you suspect someone in your team has recurring sickness that may be disability-related — mental health issues, diabetes, cancer, chronic fatigue, ADHD, autism and so on — please pick up the phone so we can make sure you’re handling it correctly.
Parental Rights Are Now Day One Entitlements
Also from April, a number of family-related rights became day one entitlements. That includes unpaid parental leave and paternity leave, meaning employees can request these from the moment they start with you, regardless of how long they’ve been in post. The qualifying period that previously acted as a buffer has gone.
Whilst many of these entitlements are unpaid, the legal and operational exposure is where businesses need to pay attention. Parental and family-related rights are closely linked to protected characteristics, which means a poorly handled refusal isn’t just an HR problem — it’s a potential tribunal claim. You can no longer fall back on length of service as a reason to push back.
Operationally, you could see a noticeable increase in requests from newer employees who previously wouldn’t have been eligible, which has a real impact on resourcing, particularly in smaller teams.
Your policies need to reflect the new day one entitlements — anything referencing a qualifying period will now be wrong. Managers need to know how to handle requests properly, and any refusal needs to be documented with a clear business reason. Vague or verbal responses are where discrimination claims start.
An updated staff handbook and a standalone parental leave policy are the quickest way to get this right. I can provide both, fully updated to reflect the Employment Rights Act 2025 changes, with clear guidance built in for managers. Just get in touch and I’ll get it sorted.
If You Can’t Prove It, It Didn’t Happen
One of the biggest changes in April — and the least talked about — was the launch of the Fair Work Agency. Think of it as HMRC, but for employment law. ACAS and the tribunal system are no longer the only things to be aware of. The Fair Work Agency can come after you proactively, without a single complaint from an employee. They can turn up at your premises and demand to see contracts, records and any evidence they choose. They will be policing pay, holiday, absence, working time and various other elements of workers’ rights — and where they need to run an investigation, they’ll charge you for their time.
If you don’t have accurate records and you fail compliance rules, you can now face heavy fines or even imprisonment. They can also file a tribunal claim against you without the employee being involved at all.
Most businesses think they’ve got this covered, but when you look at the detail, records are often incomplete, inconsistent or spread across different systems — which is fine until someone asks for evidence. The expectation is now a full audit trail, including the ability to evidence holiday entitlement, holiday taken and decisions made going back six years. If someone challenged you tomorrow, could you prove what’s happened? If the answer is “not easily”, that’s the gap to close, and quickly.
If you’re not sure where the gaps are, I can work through a records audit with you and help you get things in order before they become a problem. Better to do it now than under pressure later.
Your Hiring Mistakes Will Show Up Faster
Looking ahead to January 2027, one of the biggest shifts is the move to unfair dismissal rights after just six months. But don’t wait — this applies to all new hires from 1 July 2026. This significantly reduces the window you have to identify and deal with issues in new starters. It also increases the risk when dismissing existing staff. And the compensation cap for unfair dismissal awards has been removed entirely, so getting a dismissal wrong will cost you considerably more than it used to.
Most problems don’t appear immediately — they build over time, whether that’s performance, attitude or general culture fit. In many businesses those issues are left too long before being addressed. You now have less than six months. Any new hire who isn’t working out needs to be dealt with by month five at the latest, which isn’t long if your probation process is informal or reactive.
Your probation process needs clear assessment and review points, not a vague six-month check-in. By the time you reach six months, it’s too late. Expectations need to be set from day one with documentation to match, and managers need to deal with issues when they arise rather than letting them drift.
I have a probation period pack that gives you everything you need: a structured review process, documentation templates and manager guidance. For key hires, I’d also recommend looking at psychometric testing before you make an offer — it’s a genuinely useful tool for assessing culture fit and reducing the risk of a costly bad hire. Get in touch and I can talk you through the options.
What Comes Next
This legislation is already in force for most of these changes, and there is more coming later in 2026 and into 2027. The best time to get your house in order is now, not when the Fair Work Agency is at your door or a tribunal claim lands in your inbox. If any of this has raised questions or you’re not sure where to start, give me a call and we’ll work through it together.