Employment roadmap sets 2026 reforms, but sick pay deadline looms

Employment roadmap sets 2026 reforms, but sick pay deadline looms

Nine-month window to overhaul sick pay sparks concern as employers brace for biggest workplace reform drive in decades.


The government has published its official roadmap for implementing the Employment Rights Bill, laying out phased changes through 2027 — but a tight nine-month deadline for major sick pay reforms is prompting concern among employers.

The new legislation, which includes sweeping updates to sick pay, zero-hours contracts, and unfair dismissal protections, is being described by the CIPD as “the most significant workplace reforms in a generation.” The phased implementation begins immediately after Royal Assent — expected in September 2025 — and continues through to 2027.

Ben Willmott, head of public policy at the CIPD, welcomed the clarity: “This roadmap gives greater clarity on the timelines for implementing the most significant workplace reforms in a generation.” He noted it was “positive that the government has recognised the importance of further consultation on key areas still to be finalised, such as the new statutory probation period and new rights for zero hours workers.”

However, the timeline for changes to statutory sick pay — due to come into force in April 2026 — has drawn concern. The new rules scrap the three-day waiting period and remove the lower earnings limit, making SSP payable from day one for all employees, including those earning below £123 per week. Employers must now update payroll systems and absence policies by spring.

“Employers only have nine months to prepare for changes to the statutory sick pay regime,” said Willmott. “We’d hoped they’d be given more time to prepare for this significant change.”

The roadmap also confirms the launch of the new Fair Work Agency (FWA) in April 2026 — a single enforcement body merging existing regulators and equipped with new powers, including cost-recovery from non-compliant employers and the ability to bring claims on behalf of workers. Despite this, enforcement capacity remains a key concern. The employment tribunal system is facing a record backlog of nearly 50,000 cases, with average waits nearing 12 months.

“It’s positive to see the government commit to ensuring the enforcement system has the capability and capacity to cope,” said Willmott, but he warned, “questions remain about the funding to deliver on this.”

The CIPD is urging the government to fund ACAS and appoint additional labour market inspectors, particularly to support micro and small businesses.

April 2026 also brings day-one entitlements for paternity and unpaid parental leave, while October 2026 introduces a ban on “fire and re-hire” practices — except in genuine rescue situations. By 2027, most forms of exploitative zero-hours contracts will be curtailed, with employers required to offer guaranteed hours after a 12-week reference period. Workers will also gain day-one unfair dismissal protection, subject to a new statutory probation period.

That probation model — currently out for consultation — may allow dismissals without full procedural protections for up to nine months. Business groups have cautiously welcomed the proposal as a way to balance employee rights with hiring flexibility, but legal experts say the rules remain “highly provisional.”

Much also depends on how the government defines “low-hours” work for the purposes of mandatory guaranteed-hours offers — draft secondary legislation is expected early next year.

While the roadmap marks a decisive shift in UK labour regulation, execution risks remain.

“Adequate investment [in enforcement] will help employers avoid costly and time-consuming employment tribunal claims and reduce pressure on the tribunal system, where waiting times are already at record levels,” Willmott said.

The full roadmap, policy papers, and consultation documents are now available on gov.uk.


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