The Employment Rights Act 2025 is the biggest overhaul of UK employment law in a generation, with much of the act prioritising “fairness, equality and wellbeing of workers”. Given the legal implications for employers, it’s important for HR teams and employers to know exactly what’s changing and when.

This blog explains the four key changes that are most relevant to employee wellbeing. We also give our expert advice on the actions you need to take to stay on the right side of compliance.

The information about the key legal changes in this blog have been verified by Liz Burley, HR and Employment Law specialist at Burley Law. Learn more about Burley Law.

Statutory Sick Pay (SSP) and Lower Earnings Limit (LEL) rule changes

When: 

6 April 2026

The change: 

Statutory Sick Pay (SSP) will be payable from day one of sickness absence, removing the previous three waiting days. And the Lower Earnings Limit (LEL) will be abolished. 

The changes mean that around 1.3 million low-income workers who previously didn’t qualify will now be eligible for SSP. For those below the previous threshold, SSP will be paid at 80% of average weekly earnings or the standard statutory rate (currently £118.75 per week), whichever is lower.

While these changes will have little impact for those on higher salaries and where the employer offers additional company sick pay, for low paid employees, this is a huge relief. The waiting days system was widely criticised for fuelling presenteeism, when people come to work feeling unwell because they simply couldn’t afford not to. Getting rid of the pay gap at the start of an illness is good for an individual’s financial, mental and physical wellbeing, which is also good for the workplace (after all, healthy and happy employees are much more productive).

What this means for employers:

Employers now face an immediate financial cost from the first day of an employee’s absence. The data makes this quite an urgent change. According to the CIPD’s Health and Wellbeing at Work Report 2025, mental ill health is “the leading cause of both short- and long-term absence”. With 148.9 million working days lost to sickness or injury in 2024 (ONS), organisations that don’t have a robust approach to absence management will really feel the financial impact of short term absence.

Good absence management isn’t just about tracking who is off; it’s about understanding the root causes, intervening early, and building a culture where people can manage their health before it reaches a crisis point. 

What to do now:

  • Update your absence policy and employment contracts to remove references to waiting days.
  • Audit payroll and eligibility for LEL changes.
  • Invest in line manager capability, meaningful return-to-work conversations, and a wellbeing strategy that addresses mental health proactively rather than reactively.

Gender equality action plans and menopause support rule changes

When: 

April 2026

The change:

Gender equality action plans (including specific provision for supporting employees through the menopause) will be introduced on a voluntary basis from April 2026. They become mandatory in 2027 (exact date TBC) for larger employers with 250 or more staff. 

What this means for employers:

The voluntary window is an opportunity, not a grace period: larger organisations that act now will be far better placed when the legal requirement lands. For smaller businesses, this is an opportunity to stand out as a great employer by taking action even though it is not compulsory.

The menopause affects around half the population, yet it remains one of the most under-discussed workplace health issues. Symptoms can affect concentration, mood, confidence, sleep, and physical health. Without appropriate support, many employees reduce their hours or leave the workforce altogether at precisely the point in their careers when they have the most experience and value to offer.

Effective support starts with awareness: ensuring managers understand what menopause is, how it presents differently in different people, and how to have supportive conversations. From there, it extends into flexible working, reasonable adjustments, and a culture where employees feel safe to raise health concerns without fear of stigma or career consequences.

What to do now:

  • Audit your current position honestly. Do your managers have the awareness and confidence to support employees through menopause?
  • Use the voluntary phase to build your action plan rather than scrambling to meet a deadline in 2027.

Flexible working rule changes

When: 

From 2027

The change:

Since April 2024, all employees have had the right to request flexible working from day one, with employers required to respond within two months. The Employment Rights Act 2025 goes further. From 2027, employers will be required to demonstrate that any refusal is reasonable, not just cite a ground for declining, but explain in writing why it’s reasonable in their specific circumstances.

What this means for employers:

Access to flexibility supports mental health, reduces stress and burnout, and is particularly significant for those managing caring responsibilities or long-term health conditions. When requests are refused without clear reasoning, it erodes trust and signals whose needs the organisation truly prioritises.

CIPD evidence cited in the government’s own consultation indicates that flexible working requests are still handled inconsistently across UK businesses (even where organisations believe their processes are good). The 2027 changes mean that inconsistency now carries more legal risk.

What to do now:

  • Review how requests are handled on the ground.
  • Ensure managers are documenting decisions with a clear rationale and communicating them appropriately.
  • Begin shifting the culture towards flexibility as the default. Upskill and educate managers and others who are dealing with requests on the ground.

Sexual harassment rule changes

When: 

April 2026 and beyond

The change:

Since October 2024, employers have been under a legal duty to take reasonable steps to prevent sexual harassment under the Worker Protection Act 2023. Tribunals can uplift compensation by up to 25% where an employer has failed to meet this duty.

The Employment Rights Act 2025 adds further layers across three dates:

  • April 2026: Sexual harassment disclosures have standalone protection under whistleblowing law. Any employee who raises concerns (including witnessing harassment, not just experiencing it) gains full legal protection from detriment or dismissal.
  • October 2026: The standard upgrades to all reasonable steps. Third-party harassment liability also comes into force: employers will be liable for harassment by clients, customers, contractors, or visitors, unless they have taken steps to prevent it with no requirement for a pattern of incidents before liability arises.
  • 2027: Regulations will define what “all reasonable steps” means, and NDAs preventing workers from disclosing harassment or discrimination will become void.

What this means for employers:

Psychological safety is the foundation of a healthy workplace because an employee who doesn’t feel safe cannot thrive. The mental health consequences of harassment are well-documented: anxiety, depression, and prolonged stress that feeds directly into absence and attrition. For SMEs without large HR teams or formal infrastructure, a single incident involving a client or contractor can now carry serious legal and reputational consequences if the right steps aren’t in place.

One-off training and a policy in a handbook are no longer enough to avoid liability for harassment. From October 2026, employers will need a documented, embedded, proactive approach with risk assessments, regular training, and reporting channels that employees actually trust.

What to do now:

  • Conduct a harassment risk assessment that includes third-party scenarios (like client meetings or site visits).
  • Ensure reporting processes are genuinely accessible and trusted by staff.
  • Commit to regular rather than one-off manager training.

Stay ahead of the employee wellbeing legislation changes 

The dial is shifting and the law now expects organisations to take employee wellbeing very seriously.

While these changes are overwhelmingly positive for employees, who deserve to be happy and well supported in the workplace, the burden will ultimately fall on HR professionals and line managers (particularly in SMEs) to manage all of this (probably without large teams or dedicated budgets). Beyond what’s covered here, 2027 will also bring further changes including statutory bereavement leave, enhanced pregnancy and maternity protections, and guaranteed hours rights for variable-hours workers. 

It’s a lot to think about, and that’s why peer learning and shared expertise have never mattered more.

Join a community of expert-led wellbeing support

The Altruist Wellbeing Forum is a peer membership community built specifically for HR professionals in SMEs who want to stay ahead of changes like these. Members get access to expert-led sessions, peer discussions, and practical resources on workplace wellbeing, including how to respond strategically to legislative change rather than reactively.

It’s perfect for people who want to be part of a community that’s thinking proactively about their employees’ wellbeing (rather than scrambling to catch up!).

Learn more about the Altruist Wellbeing Forum or sign up for your free trial of the membership platform.