New sick pay rules: countdown is on for employers to prepare

Time is running out for employers to get ready for employment law legislation which comes into force at the start of the financial year, including major changes to sick pay.

That’s the message from the team at Swindon-based HR Dept, which is seeing a surge in enquiries from employers trying to get to grips with the new rules.

From 6 April, many of the sweeping changes introduced by the Employment Rights Act will have to be complied with. This means employers must urgently review and update their staff contracts, handbooks, payroll systems, and internal policies to ensure full compliance and avoid potential legal disputes.

One of the most significant alternations is to Statutory Sick Pay (SSP), with the removal of the three-day waiting period. In addition, all employees will become eligible for SSP, regardless of their level of earnings.

Changes will come in for paternity leave, with the 26-week qualifying period being removed (although eligibility for paternity pay remains at 26 weeks). The 26-week qualifying period for unpaid parental leave is also being removed (for children born on or after 6 April 2026).

An introduction which has received little media attention is bereaved partners’ paternity leave. This applies if a primary carer dies within the first year of a child’s birth. Up to 52 weeks leave will be available (to mirror maternity entitlements) and pay is at the employer’s discretion.

“This is a major change for employers, particularly with the SSP rules which – while good news for employees – will be very challenging for employers. And these changes will incur a huge amount of paperwork for employers, as contracts need to be updated, payroll has to be adjusted, and internal policies reviewed,” said Helen Imbusi, Head of HR Consultancy at the HR Dept. “With implementation just days away, employers need to act now to avoid getting into hot water.”

There are yet more changes being introduced from October, including the extension of the employment tribunal time limit from three to six months. From January 2027, there will be another wave, including a reduction from the current two years’ service qualification for unfair dismissal claims, meaning anyone employed six months prior to this date will be eligible.

Helen said: “It’s no exaggeration to say the Employment Rights Act represents the biggest upheaval that employers have had to face for decades, and navigating the sheer volume of legislation is a minefield. Even those employing just two or three staff members are seeking support from us, to ensure they are fully compliant.”

For help and advice with implementing the Employment Rights Act, email helen.imbusi@hrdept.co.uk or call 01793 683 398. For more about the HR Dept, visit https://www.hrdept.co.uk/swindon-north-wiltshire-east-cotswolds/.

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