Sick pay changes biggest concern for employers

A new survey has found that the biggest worry for employers when it comes to the Employment Rights Act is changes to statutory sick pay.

Employment Rights Act 2025

First announced in October 2024, the Employment Rights Bill received Royal Assent on the 18^th of December 2025 and is now the Employment Rights Act 2025, which will be rolled out in phases.

Most key changes are expected to start from April 2026, followed by further provisions in October and in 2027, including things like:

• Changing the qualifying period to claim unfair dismissal from two years to six months.
• A strengthened right to request flexible working arrangements from day one in a role.
• Zero hour and agency workers will gain rights to request guaranteed hours based on a 12-week average.
• It will be more difficult for employers to use ‘fire and rehire’ tactics for contract changes (except in insolvency).
• The three-day waiting period for Statutory Sick Pay (SSP) will be eliminated.
• Enhanced rights for time off work for bereavement.
• Better access to paternity and parental leave from day one.

Sick pay reforms will have the biggest impact on employers

Workplace expert, Acas, commissioned YouGov to ask which changes in the Employment Rights Act 2025 will have the biggest impact on bosses and workers.

New rights on sick pay topped the polls for both, followed by new protections on unfair dismissals.

Employers ranked new paternity leave rights as their third biggest concern, while workers opted for the new changes on flexible working.

As many as 43% of employers said that workers getting sick pay for the first day of illness, rather than the fourth day, will have the biggest impact on them.

The sick pay changes will come into force on the 6^th of April 2026.

Targeted support for bosses and workers

The insights gained from the report will help Acas to better target the support needed by workers and bosses.

Commenting on this, Niall Mackenzie, Acas Chief Executive, said, “It is clear from our polls that new worker rights on sick pay and protections from being unfairly dismissed from work are at the forefront in the minds of employers and workers.

“Acas will play a crucial role working with employers, workers and their representatives on the implementation of the Employment Rights Act and updating its advice and training.

“These reforms represent the biggest shake-up to employment law in a generation. Acas remain best placed as independent experts helping everyone at work throughout this period of change.”

To find out more about contracting, please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.