The Employment Rights Act (ERA) introduces major changes for employers, including expanded employee rights, updated statutory sick pay rules and stronger expectations around workplace harassment prevention.

Although some of the ERA measures relating to strikes, trade union activity and paternity leave have already come into force – April 2026 sees a large number of changes to employment law come into force. Employers need to prepare now in order to ensure they remain compliant.

While the policy work and leadership alignment are crucial steps, compliance relies on the everyday interactions that make up a business. You need to be sure that your managers know how to answer a sickness query, process a payslip correctly or what to do when a flexible working request lands on a Friday afternoon. And from April, these moments are where compliance either holds or doesn't.

Where the Employment Rights Act will impact first

Your processes relating to sickness absence, statutory sick pay, working hours, pay fairness and flexible working are the ones most likely to be tested early. These are also the ones that typically have a lot of handoffs, room for inconsistency and the most direct impact on how employees feel treated.

This is why it is important to do more than just review an updated policy. Try to see how the actual process works across HR, payroll and line management. Find the points where judgement calls need to be made with incomplete information or where the handoffs happen. These are the moments where the ball can get dropped and compliance problems start. Addressing them now will be considerably less painful than doing so after a grievance.

Managers are making legal decisions – often without realising it

The ERA brings expanded day-one rights, changes to statutory sick pay and a higher bar on consistency and fairness. This means your line managers will be making legal decisions, even if they don’t know it.

What’s needed isn’t always more training but clearer guardrails. To do their job well, your line managers should have a clear understanding of what's in their discretion, what needs escalating and why the way things were handled informally before may not be defensible now. There are risks created when busy managers feel like they need to improvise when they're uncertain. Giving them clearer guardrails is all about making sure they have less reason to go with their gut.

Harassment prevention: what employers must do before October 2026

Employers are legally required to proactively prevent sexual harassment rather than just respond when something happens. From October 2026, that standard rises further and employers must take ‘all reasonable steps’ to ensure their workplaces are free of harassment. For the first time, employers will also carry liability for harassment by third parties such as clients and contractors.

In practice this means making sure your risk assessments get closely reviewed and not just filed. Any training needs to be repeated over the next seven months to make sure teams know how to report and managers feel equipped to handle potential incidents effectively. Also, it is important that everything is documented as ‘all reasonable steps’ will be tested evidentially. You will need to show the actions you have taken and when.

Here is a quick spot check to carry out in April. Ask yourself:

• When was your risk assessment last reviewed?
• Has you introduced new teams, new locations or more client-facing work?
• Are managers confident about what to do when something is raised informally?

If any of that is uncertain, you need to begin addressing it now.

Ensuring payroll reflects HR decisions

Statutory sick pay changes need to be applied correctly from April with pay, eligibility and deductions reflecting actual working patterns.

When occasionally something goes wrong, you need to have a clear route to catch it quickly, fix it and explain it. That requires HR and finance working together using a shared understanding rather than assuming the other has it covered.

You need to say something, even if it's not perfect

Your employees need to be told what's changing, what it means for them and who to contact if they have any concerns or questions. A clear and honest message, even one that acknowledges things are still settling, is better than waiting until you have all the answers.

Why employers must document compliance decisions

The ERA raises the expectation that your business will be able to demonstrate how its managing people risk. Being able to do so requires clear ownership and record keeping of decisions made, actions taken and risks identified. If you don’t already have someone doing this, it’s time to nominate a team member to keep this log up to date, proportionate and available when needed.

Preparing for the new reality

You shouldn’t think of April as a deadline, but as the beginning of a new era. One where employee expectations are higher, enforcement is more confident and informal practices are harder to defend. If you’re unsure where pressure might surface, or how defensible your current approach is, speak to Sharon Broughton or your usual RSM contact.

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