The government claims the modifications will help ensure that lower-paid workers have financial protection when they are ill and can help limit the spread of infection within a workplace.

The update comes as fresh research from conciliation service Acas indicated the new entitlements on sick pay will have the greatest impact on staff and employers. The study also found that new protections on unfair dismissals, as part of the Employment Rights Act, were also identified as having a substantial impact.

Niall Mackenzie, Acas chief executive, said: "The Employment Rights Act is a major shake-up in employment law and will impact businesses and workers across the country. It's crucial that both employers and employees get to grips with the new rules, and Acas remains best placed as independent experts helping everyone at work throughout this period of change."

The Acas study revealed that 43% of employers believe that workers receiving sick pay from the first day of illness rather than the fourth would have the most significant impact, with 36% of employees also stating it as their primary concern.

The second most popular reform was protection against unfair dismissal after six months in a job instead of two years, chosen by 31% of employers and 30% of workers. 

The Employment Rights Bill changes will be implemented from 6 April onwards.

Key changes

Statutory Sick Pay will be available to all eligible employees regardless of their earnings (the Lower Earnings Limit is being removed).

Statutory Sick Pay will be payable from the first full day of sickness absence (the three-day waiting period is being removed).

The rate of Statutory Sick Pay for all employees will be calculated at 80% of their average weekly earnings or the flat weekly rate, whichever is lower.

Key dates:

April 2026: Statutory Sick Pay (SSP) and Paternity Leave become 'Day One' rights
April 2026: The new Fair Work Agency launches to enforce holiday pay and sick pay rules
January 2027 (Projected): The new "6-month rule" for unfair dismissal takes effect

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