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Employment Rights Act 2025: Day-One Employment Rights Explained For Small Businesses
One of the most discussed elements of the Employment Rights Act 2025 is the expansion of ‘day-one employment rights’.
For small business employers, this raises practical questions:
What rights are actually changing?
When do the employment law changes apply?
What is confirmed legislation versus consultation?
How does this affect probation periods and dismissal risk?
This blog post separates confirmed changes from proposals so you can prepare proportionately and remain compliant.
What Are Day-One Employment Rights?
Day-one employment rights remove qualifying service periods for certain statutory entitlements. Instead of employees needing months or years of service before accessing particular rights, they become entitled from their first day of employment.
Under the Employment Rights Act 2025, several reforms affect qualifying periods, particularly in relation to statutory sick pay and family leave.
It is important to distinguish between confirmed changes scheduled for implementation and reforms that remain subject to consultation.
Confirmed Changes Affecting Day-One Rights
Statutory Sick Pay (SSP) changes – expected April 2026
One of the most significant confirmed employment law changes for 2026 relates to statutory sick pay reform.
The Employment Rights Act 2025 confirms:
Statutory sick pay will be payable from day one of sickness absence (removal of the current waiting period).
The lower earnings limit for SSP eligibility will be removed, meaning more workers qualify.
These statutory sick pay changes are legislated, although detailed operational guidance and commencement regulations are still being finalised.
Day-one family and parental leave rights – expected April 2026
Certain family-related employment rights are expected to apply from the first day of employment.
This affects areas such as:
Paternity leave
Unpaid parental leave
Other qualifying family leave entitlements
For SME employers, this means:
New starters may request statutory leave earlier than under previous rules.
Employment contracts and handbooks may require updating.
Onboarding discussions should reflect updated statutory rights.
These are confirmed legislative changes, though precise implementation dates should be monitored.
Important Distinction: Unfair Dismissal Is Not Day One
There has been confusion around whether unfair dismissal protection will become a day-one right. It will not.
Instead, the unfair dismissal qualifying period is expected to reduce from two years to six months (anticipated 2027 implementation).
This is a significant shift in employment law, but it does not create immediate day-one unfair dismissal protection.
For employers, this means:
Probation period management becomes increasingly important.
Performance concerns must be documented early.
Clear expectations should be set from the start of employment.
Strong probation processes will be central to managing dismissal risk under the Employment Rights Act 2025.
What Remains Subject To Consultation
Although statutory sick pay reform and family leave extensions are confirmed, some related areas remain subject to consultation or further regulation, including:
Detailed dismissal process requirements during early employment
Associated procedural safeguards
Compensation framework adjustments
As with many large employment law reforms, secondary legislation and ACAS guidance may follow primary legislation.
This staged approach is one reason the current employment law landscape can feel unsettled.
Why Day-One Employment Rights Matter For SMEs
For small businesses, expanded day-one rights increase:
Financial exposure (particularly around statutory sick pay)
Administrative requirements
The importance of correct documentation
Tribunal risk if processes are mishandled
However, entitlement expansion does not remove managerial discretion. Where small employers have:
Clear contracts
Up-to-date policies
Structured probation reviews
Consistent performance documentation
They remain well positioned to manage employment risk effectively.
The Employment Rights Act 2025 raises compliance expectations - but it does not prevent employers from managing performance or capability fairly.
Practical Steps For Small Business Employers In 2026
To prepare for day-one employment rights without overreacting:
Review sickness absence policy wording in light of statutory sick pay changes.
Check employment contracts for outdated qualifying period references.
Update onboarding documentation to reflect confirmed statutory rights.
Strengthen probation review templates and documentation processes.
Monitor confirmed commencement dates before implementing structural changes.
Employment law compliance in 2026 is about accuracy and proportionality - not panic.
Need Assistance?
The expansion of day-one employment rights under the Employment Rights Act 2025 represents one of the most practical changes facing small business employers.
Understanding the difference between confirmed law and proposed reform allows SMEs to prepare confidently and avoid unnecessary disruption. If you are unsure how the Employment Rights Act 2025 affects your business, taking advice early can reduce risk and provide peace of mind. Get in touch with us today to understand how we can help.