Yes. The Employment Rights Act 2025 small business owners need to know about is already in force — if you employ anyone in the UK, these new laws apply to you.

Changes that apply to ALL employers right now?

Change	In force from
Day-one Statutory Sick Pay	6 April 2026
Day-one parental leave rights	6 April 2026
Holiday pay record-keeping (6 years)	6 April 2026
Strengthened sexual harassment duty	6 April 2026
Fair Work Agency enforcement	April 2026

What about my payroll cost?

SSP is paid by the employer, not the government. The removal of the three-day waiting period means you now pay from day one of any sickness absence. For businesses with part-time or lower-paid staff, this is a real cost change — update your payroll software and budget accordingly.

What if I use zero-hours contracts?

You can continue to use zero-hours contracts for now. But from 2027, workers who have worked a consistent pattern will have the right to a guaranteed hours offer that reflects their actual working pattern. Begin auditing your arrangements now.

Common questions

My business has fewer than 10 employees — does the ERA still apply?
Yes. The Employment Rights Act 2025 does not include small employer exemptions for most provisions. All employers must comply with the April 2026 changes immediately.

Do I need to rewrite all my employment contracts?
You should update contracts to reflect day-one SSP and parental leave rights. If you have a staff handbook, that needs updating too. The October 2026 and 2027 changes will require further updates.

What is the Fair Work Agency?
A new body that consolidates enforcement of National Minimum Wage, holiday pay, and SSP into one organisation with enhanced investigation and penalty powers. Treat it as a step up in enforcement risk.