From sick pay to whistleblowing: Sweeping new worker rights take effect
This week marks one of the most significant shifts in employment regulations in years. From whistleblowing protections to ‘day‑one’ rights for fathers, a series of new costly rights is coming into force that businesses need to be prepared for.
The government published a report earlier this year that revealed an estimated direct cost to business will be between £1bn (low) and £5bn (high) per year once the Employment Rights Act is fully implemented.
Now, a significant amount of the reforms are coming into effect this week. Jonathan Newman, partner at law firm Norton Rose Fulbright, warned, “April’s changes are not just about new rights on paper; they signal a tougher enforcement environment for employers.”
With more reforms from the Act scheduled to come into effect throughout 2026 and into 2027. Lucy Lewis, partner at Lewis Silkin, warned businesses “should be using this moment to check and re-check their internal policies, compliance processes and HR systems.”
‘Day-one’ paternity leave rights
As of Monday, 6 April, under the Employment Rights Act, collective redundancy breaches will double, as the maximum protective award will increase from 90 to 180 days’ pay.
There will now be ‘day‑one’ rights for paternity leave and unpaid parental leave as employees no longer need 26 weeks’ service (paternity) or a year’s service (unpaid parental leave).
There will also be up to 52 weeks’ paternity leave allowed to bereaved partners, so if a mother or primary adopter dies within a child’s first year, their partner will be able to take up to a full year.
Another ‘day-one’ right will be for statutory sick pay, which will become payable from day one, with the lower earnings limit and the three‑day waiting period removed, widening eligibility.
Statutory sick pay rights are set to drive up employer costs at a time when pressures are already rising. Andrew Peters, partner at law firm TWM, stated, “The additional cost of statutory sick pay alone is expected to reach £400m a year.”
Sarah King, partner with Excello Law, added: “We are also likely to see more employees staying at home with minor illnesses where they may previously have come into work.”
Whistleblowers gain protection
As of Monday, workers who complain about sexual harassment will qualify more easily for whistleblower protections.
“That means compliance failures in the future are more likely to be identified and pursued. At the same time, sexual harassment being expressly recognised as a qualifying whistleblowing disclosure raises the stakes for how complaints are handled internally,” explained Newman.
He warned businesses to review whistleblowing procedures, ensure leadership are trained, and make sure records are robust.
The last measure to come into effect today will be a measure to encourage (but not require) employers to publish gender equality action plans, covering supporting women through menopause and reducing their gender pay gaps.
On Tuesday, 7 April, the Fair Work Agency (FWA) will be formally established, taking over enforcement of various employment rights, including the national minimum wage, sick pay, and holiday pay.
The FWA will now have the power to investigate breaches, issue civil penalties, and take action against labour exploitation.