Major Sick Pay Overhaul Takes Effect from April 6
Significant changes to sick pay regulations will come into force on April 6, 2026, marking a substantial shift in employment rights across the country. From this date, Statutory Sick Pay will be payable from the very first day of sickness absence, rather than after a waiting period, and will be accessible to a broader range of employees.
Government Aims for Financial Security and Health Protection
The government asserts that these modifications are designed to ensure that lower-paid workers have greater financial stability when they fall ill. Additionally, the reforms aim to help reduce the spread of infections within workplaces by encouraging employees to stay home when unwell without facing financial hardship.
Recent research indicates that the new sick pay entitlements will have a profound impact on both workers and employers. A study commissioned by Acas, the conciliation service, examined changes under the Employment Rights Act and found that enhanced protections against unfair dismissal are also expected to be highly influential.
Key Findings from Acas Research
The survey revealed that 43% of employers believe that workers receiving sick pay from the first day of illness, instead of the fourth, will have the greatest impact on their business. Meanwhile, 36% of employees identified this change as their primary concern.
Protection from unfair dismissal after six months in a role, rather than two years, was the second most frequently cited reform, selected by 31% of employers and 30% of workers. Employers ranked new paternity leave rights as their third most significant concern, while workers highlighted changes to flexible working arrangements.
Niall Mackenzie, Acas chief executive, commented: "The Employment Rights Act represents a major shake-up in employment law and will affect businesses and workers nationwide. It is crucial that both employers and employees understand the new rules. Acas remains best placed as independent experts to assist everyone during this period of transition."
Comprehensive Changes Under the Employment Rights Act
The act introduces a series of reforms with staggered implementation dates:
April 2026: Pay, Leave, and Consultation Adjustments
- Minimum hourly pay rates increase: £12.71 for workers aged 21 and over, £10.85 for ages 18-20, and £8.00 for under-18s and apprentices.
- Statutory parental pay rises to £194.32 per week.
- Statutory Sick Pay increases to £123.25 per week, payable from day one of absence.
October 2026: Enhanced Protections Against Unfair Practices
- "Fire and rehire" practices become more difficult, requiring stronger justification and robust consultation for changes to core terms like pay.
- Sexual harassment obligations expand, mandating employers take "all reasonable steps" to prevent harassment, including by subcontractors, agency workers, and clients.
- Reporting sexual harassment will be specifically considered as a protected disclosure on its own, subject to existing whistleblowing conditions.
Positive Impact on Women and Low-Paid Workers
Research from the Trades Union Congress indicates that approximately 4.7 million women are set to benefit from stronger sick pay provisions starting in April. This includes more than 830,000 women who will receive statutory sick pay for the first time, primarily those earning below the previous threshold of £125 per week.
Paul Nowak, TUC general secretary, stated: "For too long, women have borne the brunt of a sick pay system that is not fit for purpose and a culture of exploitative, insecure work. The Employment Rights Act is an important step forward for women at work."
A Government spokesperson added: "The Employment Rights Act is a huge boost for women in the workplace, introducing enhanced protections for pregnant women and new mothers, menopause action plans for large employers, and rights for parental leave from day one. Women thriving in the workplace is not just important for equality but for boosting economic growth."
From April, fathers and partners will also have a day one right to paternity leave, and all parents will gain the day one right to unpaid parental leave under the act's provisions.
Acas has committed to working with employers, workers, and their representatives on implementing the Employment Rights Act, updating its advice and training to support the transition.
