Workplace expert Acas has commissioned YouGov to examine which reforms in the Employment Rights Act 2025 will have the greatest impact on employers and workers. The findings show that changes to sick pay and unfair dismissal rights are at the forefront of concern — particularly for businesses.

Sick pay reform tops employer concerns The most significant change for employers is the extension of Statutory Sick Pay (SSP) from day one of absence. Currently payable from the fourth consecutive day of sickness, the reform means staff will qualify from the first day of illness.

In the survey, 43% of employers said this would have the biggest impact on their organisation. Employers should prepare for increased short term absence costs, review sickness absence policies, update payroll systems, and ensure managers are trained to handle absence consistently and fairly.

Unfair dismissal protection reduced to six months From 1 January 2027, employees will gain protection from unfair dismissal after six months’ service, instead of the current two-year qualifying period. Thirty-one per cent of employers identified this as a major impact. Businesses should review recruitment processes, strengthen probation procedures, ensure clear documentation of performance management, and confirm that fair reasons and procedures are followed before dismissal decisions are made.

Day-one paternity leave rights From 6 April 2026, employees will be entitled to paternity leave from their first day of employment, removing the current 26-week qualifying period. Twenty-eight per cent of employers ranked this as a key change. Employers should update family leave policies, contracts, and workforce planning arrangements to reflect the new entitlement.

Flexible working reforms ahead Further reforms in 2027 will improve access to flexible working arrangements. Employers must continue to follow the Acas Code of Practice when handling requests and ensure decisions are evidence based and properly documented. Niall Mackenzie, Chief Executive of Acas, said the reforms represent “the biggest shake-up to employment law in a generation,” and confirmed that Acas will update its guidance, training and support to help employers implement the changes effectively. Employers are encouraged to review policies now and plan ahead for staged implementation dates.