The Employment Rights Bill has now received Royal Assent and is officially law as the Employment Rights Act 2025.
The changes will be implemented on a phased basis throughout 2026 and 2027, requiring employers to review and update their employment contracts, policies and practices.
One of the most significant changes for the payroll industry is the reform of Statutory Sick Pay, which will become a day one right from April 2026, with eligibility extended to lower-paid workers and a new approach to how payments are calculated.
In this Smart Talk our expert Cybill Watkins, Product Legislation Manager, walks you through what’s changing, what it means in practice and how you can prepare ahead of implementation.