Change to law ‘now in force’ for people taking sick day

The government has confirmed that roughly 15 million people — half of the entire workforce — are set to benefit from the Employment Rights Act 2025

Major reforms affecting all workers have now taken effect – with the Government confirming that approximately 15 million people, representing half of the entire workforce, stand to benefit. Seven crucial measures within the Employment Rights Act are now legally enforceable and will have implications for anyone feeling unwell before going into work.

One notable new change will affect anybody who calls in sick. Further employment law updates include ‘day one’ rights for parental and bereavement leave, as well as an end to exploitative fire and rehire practices.

Officials say the reforms will eradicate insecure work, unfair pay and poor working conditions, putting more money in workers’ pockets and raising living standards. These include extending sick pay to up to 1.3 million of the lowest-paid employees.

In a recent parliamentary question, Labour’s Dr Beccy Cooper asked Secretary of State for Work and Pensions, Pat McFadden: “What assessment they have made of the adequacy of Statutory Sick Pay in meeting essential living costs for low-income workers.”

In response, Dame Diana Johnson, Minister of State at the Department for Work and Pensions, highlighted the new laws which are now in force. She said: “Statutory Sick Pay (SSP) is designed to provide a minimum level of support and financial security for employees when they are unable to work due to sickness whilst also balancing the cost to employers.”, reports the Mirror.

“The government has made key changes to SSP, which came into force last month. Through the Employment Rights Act, we have removed the Lower Earnings Limit for SSP. Previously, employees had to earn at least £125 per week to be eligible to receive SSP from their employer. The removal of the Lower Earnings Limit has meant this threshold no longer applies.

“This means up to 1.3 million more employees will be covered, supporting low-income workers and those who work for more than one employer. We have also removed the waiting period, so people can access sick pay from their first day of sickness absence.

“These changes will mean that employees receive around an extra £400 million a year in sick pay.”

The changes include:

• Statutory sick pay is paid from the first day of absence, instead of the fourth day. The lower earnings limit has also been removed.
• Parental leave is more readily available – including paternity leave and ordinary parental leave, or unpaid parental leave, which became a day one right, and bereaved partner’s paternity leave.
• Disclosure of sexual harassment has become a ‘qualifying disclosure’, giving protections from dismissal and detriment.
• Fines for employers who do not consult in collective redundancy situations have doubled to 180 days’ pay for each employee affected.
• Trade unions can use a simplified statutory recognition process to gain the right to negotiate with employers over pay and conditions.
• Employers must keep records of annual leave and holiday pay.

At Work and Pensions questions following the introduction of the plans, Labour MP Yuan Yang put it to Secretary of State for Work and Pensions Pat McFadden: “What assessment he has made of the adequacy of rates of statutory sick pay.”

For further details on rule changes, click here. Mr McFadden outlined the changes: “I believe my hon. Friend will welcome the changes the Government have made to statutory sick pay, which came into force earlier this month. For the first time ever, we have removed the lower earnings limit for statutory sick pay, as well as the waiting period so that people can access sick pay as soon as they need it. These changes will mean that up to 1.3 million more people will be covered, helping the low paid and those who work for more than one employer in particular.”

Ms Yang emphasised a crucial element was the immediate payments: “I am indeed very proud of this Labour Government’s historic Employment Rights Act 2025, which, from this month, means that workers will get statutory sick pay from the first day they are ill, rather than having to wait till the fourth. Too many people in Reading-even those working in health and care settings-are working through their illnesses; this measure will protect them, their clients and patients and improve the productivity of their workplaces.

“While the ERA is an important step forward, does the Secretary of State accept that the current flat rate of statutory sick pay-at four fifths of average earnings-remains a barrier to those on low incomes, and thus remains a barrier to tackling illness in the workplace?” Mr McFadden added: “I believe that removing the three-day limit and giving access to statutory sick pay from day one, as well as making it available to those who work for multiple employers, should decrease the pressure on workers to have to work through illness.

“My hon. Friend will be aware that the “Keep Britain Working” review led by Charlie Mayfield also aims to work with employers to help keep people in jobs while they cope with some of the long-term sickness issues that can develop as workers get older.”

The TUC has stated that the new Act will bring significant advantages for the nation, including enhanced health, wellbeing and job satisfaction, together with reduced workplace disputes, resulting in higher economic output and employment rates.

TUC general secretary Paul Nowak said: “The Employment Rights Act will deliver vital common sense reforms for millions of people across the country, including sick pay for all workers from day one, banning exploitative zero hours contracts and protecting workers from harassment.

“Too often in this debate the facts are ignored, but stronger rights at work are good for workers and employers – driving up labour market participation, improving health, raising productivity and boosting demand.

“The Employment Rights Act will deliver an estimated £10 billion boost to the economy – gains that far outstrip any costs. Britain will now be brought into line with other countries where workers already have better protections and, crucially, the legislation will give working people the higher living standards and secure incomes that are needed to build a decent life.

“Good employers will also welcome these changes: the Act protects them from competitors whose business models are built on low-paid, insecure employment.”

Research suggests that new sick pay entitlements are set to carry the greatest significance for both employees and businesses alike.

Fred Jerrome, Head of Workplace Policy at Acas (Advisory, Conciliation and Arbitration Service), cautioned that employers could face considerable financial penalties. He said: “6 April marked more than the new tax year – it saw the roll out of the first major employment law changes in the Employment Rights Act 2025.

“But bringing new laws into force is just the first step. At Acas, we’re working on how these reforms can be successful in practice. As well as training managers and communicating with staff about individual rights, Acas encourages employers to take a proactive approach to dealings with trade unions. Our collective conciliation service is on hand to assist with emerging disputes. It will be employers and unions who are ready to work well together who see the most benefits from the changes in April and beyond.”

A study commissioned by conciliation service Acas examining the Employment Rights Act’s reforms revealed that new protections against unfair dismissal were also recognised as significantly impactful.

Firms identified new paternity leave entitlements as their third most pressing concern, while workers attached greater significance to the revised flexible working provisions. Acas stated the research would enable it to target support for employees and employers where it is most required.

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.

“Acas will be working with employers, workers and their representatives on the implementation of the Employment Rights Act and we will be updating our advice and training.”