The new Employment Rights Act 2025 will introduce a number of “day one rights”, which are protections that apply from the first day of employment, rather than after a qualifying service periods.
What is changing?
- Statutory Sick Pay (SSP)
Employees are entitled to SSP from their first day of absence, paid at 80% of earnings (up to the statutory cap), with the three-day waiting period and lower earnings threshold abolished. - Paternity Leave & Unpaid Parental Leave
Both rights are available from day one, with unrestricted eligibility. While paternity pay still requires 26 weeks’ service, the leave can be taken after day one, subject to notice requirements. - Bereavement Leave
A new, day one entitlement to unpaid leave, at least one week, must be taken within 56 days of the bereavement. This includes losses before 24 weeks of pregnancy. - Additional Family Related Protections
Enhanced protections apply to pregnant employees and those returning from maternity leave, guarding against dismissal for at least six months post-return.
What Employers Need to Know in Practice
- SSP is due immediately, without any waiting days. Employers should update absence policies, payroll systems, and train managers to process first-day absences accurately.
- Paternity and unpaid parental leave (previously restricted by service) are now available from day one. Notice periods apply, including a transitional 28-day notice for new parents until July 2026.
- Employers must provide at least one week of unpaid leave, with employees having up to 56 days to take it. Appropriate protections against dismissal or redundancy must be embedded in policy.
Practical Advice for Employers
- Review Employment Documentation – Update handbooks and associated family related policies to reflect new day-one entitlements and removal of qualifying periods.
- Revise Policies and Admin Systems, particularly around SSP protocols
- Train Managers and Staff – Ensure HR and line managers understand the changes: how to process absences, handle leave requests, and support bereaved employees.
- Stay Alert for Secondary Legislation
Key details: especially regarding unfair dismissal compensation caps, are still subject to regulations.
Unfair Dismissal Changes
- The day-one right to claim unfair dismissal was removed. Instead, employees gain protection after six months’ service from January 2027, replacing the previous two-year period. The statutory cap on compensation may be removed, though details will follow in secondary legislation.
Final Thought
The Act reflects a growing focus on supporting employees from day one. For employers, this is an opportunity to demonstrate commitment to fairness and wellbeing. Preparing now, through policy updates and manager training, will help businesses meet legal requirements and foster a positive workplace culture.
