Print article
Author
Article:
The Employment Rights Act 2025 (ERA 2025) is overhauling employment law in England, Wales and Scotland and its impact upon all employers, including farming and rural businesses, cannot be underestimated. The implementation is being phased across 2026 and 2027, but April 2026 brought some key changes to the employment landscape, and these are set out below.
Statutory Sick Pay (SSP)
The lower earnings threshold for SSP has now been abolished meaning that all employees (even those on zero hours contracts – which may benefit many seasonal farm workers) are eligible for SSP. Furthermore, SSP is now paid from the first day of sickness absence. The rate of SSP will be 80% of an employee’s earnings or the current flat rate, whichever is lower.
Whistleblowing and sexual harassment
Sexual harassment has been brought within the list of wrongdoings that can form the subject matter of a whistleblowing disclosure. Workers who “blow the whistle” on sexual harassment can benefit from whistleblowing protections against detriment and unfair dismissal.
Voluntary action plans
Employers with 250+ employees now have the option to produce and publish a voluntary action plan alongside their gender pay gap data. From Spring 2027 the provision of this information will become mandatory and so employers would be well advised to start preparing action plans now. In these documents employers must show the steps they are taking both to reduce their organisation’s gender pay gap and support employees experiencing menopause.
Trade union key changes:
- Collective redundancy awards: For all dismissals on or after 6 April 2026 the maximum protective award for failing to collectively consult has been doubled to 180 days’ pay.
- A simplified recognition process: The likely majority support test has been removed, and unions only need show the Central Arbitration Committee that they have 10% membership of the proposed bargaining unit for an application to be accepted.
- Sweetheart unions: Employers can no longer block independent unions’ voluntary recognition requests by recognising a different, non-independent union.
It is likely that employers will see an increase in independent unions bringing, and succeeding in, recognition claims, potentially increasing unionisation in previously non-unionised workplaces.
Family-related employment rights
In April several changes to family-related employment rights came into force. These include the removal of the requirement to have 26 weeks’ service for paternity leave, the entitlement to unpaid parental leave from day one, the removal of the restriction on taking paternity leave after shared parental leave, and the introduction of a new right to Bereaved Partner’s Paternity leave.
Fair Work Agency (FWA)
The FWA was established on 7 April 2026. The FWA will ensure legal compliance with pay (including national minimum wage, holiday pay and SSP), the regulation of employment agencies, licensing standards and enforcing unpaid employment tribunal awards.
What should employers do?
As a result of these changes there are some steps that farming and rural business employers should take to protect themselves, remain complaint and prepare to tackle further changes in 2027. Employers should ensure that:
- Policies are up to date such as for SSP and whistleblowing. This is important where seasonal labour or historic arrangements may be in place and now outdated.
- HR systems accurately calculate holiday and the new SSP payments. Systems must also keep organised and accurate records.
- Changes are communicated to employees and where necessary employment contracts are reviewed and updated.
- Internal processes for identifying when collective consultation is triggered are robust.
- HR and management teams are comprehensively trained and aware of the new protections for employees.
Above all, if employers are unsure of what they must do to remain compliant, they should seek legal advice without delay.