What ERA 2025 reforms are expected to have the biggest impact in the Workplace?
A recent survey launched by ACAS and YouGov asked businesses and staff which reforms from the Employment Rights Act (ERA) 2025 will have the biggest impact on the workplace.
1. Statutory Sick Pay (SSP)
The reform that was expected to have the biggest impact by both businesses (43%) and employees (36%) was the introduction of SSP from the first day of absence.
Previously, SSP was only eligible for employees after the fourth qualifying and continuous day of illness.
However, since the 6th of April 2026, SSP has become available from the first day of an employee’s absence.
2. The six-month qualifying period
Businesses (31%) and employees (30%) also agreed on what they expected would be the second-biggest reform impact: the protection from unfair dismissal changing to a six-month qualifying period.
With effect from January 2027, the two-year qualifying period will be reduced to six months, meaning employees can bring an unfair dismissal claim much sooner.
However, while this isn’t being introduced until 2027, it will apply to existing employees.
This means that an employee with at least six months’ service on the 1st January 2027 will gain protection from unfair dismissal automatically.
3. Paternity leave from day one and greater access to flexible working arrangements
The third reform expected to have the biggest impact on the workplace was split between business leaders and staff.
Businesses rated the introduction of paternity leave from day one of employment as the third-most significant reform in the ERA 2025 (28%), while employees scored greater access to flexible working arrangements as their third-biggest reform (28%).
For paternity leave, employees previously needed to have 26 weeks of continuous service before they were eligible.
However, with effect from the 6th April 2026, this has also become a day one right.
Additional measures are being introduced in 2027 around flexible working.
In particular, where an employer intends to reject a flexible working request, they must be able to link this to at least one of the eight acceptable business reasons and explain why they believe their refusal is reasonable.
If you have questions about how the ERA 2025 reforms may affect your business, contact us for support with policies, procedures, and employment law compliance.
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