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Looking Ahead to 2026: What the Employment Rights Act 2025 (ERA 2025) Means for the Social Sector

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Picture of Alison Smith
Alison Smith
CEO, Director and Lead Consultant
  • Date Article Posted: January 6, 2026
Legal & Compliance Pay & Benefits People & Equality

The Employment Rights Act 2025 represents the most significant reshaping of UK employment law in over a decade. As it rolls out across 2026 and 2027, social sector employers must be prepared for sweeping changes—especially in a landscape where budgets are tight and staffing pressures are growing. 

 

Key changes from April 2026 to know 

  • New statutory rates – Statutory rates for family leave, sick pay, redundancy pay and National Minimum Wage (including the National Living Wage) will change 
  • Statutory Sick Pay (SSP) from day one of absence, and no Lower Earnings Limit – From April 2026, all employees—including those on low pay—will be eligible for SSP without a “waiting period” and the lower earnings threshold will be removed. This will make SSP more universal.  
  • Enhanced family rights – From April 2026 the qualifying period for both paternity leave and ordinary (unpaid) parental leave are removed.   
  • Collective consultation protective award – the protective award for failing to collectively consult failure will increase from 90 days’ pay, to 180 days’ pay.  
  • Whistleblowing changes – From April 2026 any disclosure made regarding sexual harassment, which are in the public interest, will qualify as a “protected disclosure”.
  • Reduced unfair dismissal qualifying period and removal of compensation cap – From January 2027, employees with just six months’ service—not two years—can claim unfair dismissal, and the compensation cap will be abolished. Social sector employers should take the time from April to review their use of and management of probation periods to prepare for this change.

 

Key changes coming from October 2026 onwards 

Likely changes will include restrictions on employers being able to use “fire and rehire” practices, extending the time limits for employees to make claims to Employment Tribunals up to 6 months, increased duties on employers to prevent sexual harassment, including from third parties, establishment of Fair Pay Agreements (FPA) in the adult social care sector and increased Trade Union rights.  

 

What this means for social sector employers 

These reforms shift the balance of power toward employees—heightening the importance of proactive policies, sound processes, and accurate recordkeeping. Labour intensive functions like scheduling, shift management, and redundancy processes are under the microscope. With financial and reputational risk rising—especially through uncapped unfair dismissal claims—compliance is more critical than ever. 

 

How Roots HR can support your organisation in 2026 

Roots HR is designed specifically for the social sector. We help small and medium not-for-profit organisations navigate these legal shifts while maintaining positive workplace culture: 

  •  Support Services: Ongoing HR support—phone, email, and consultancy—for real time guidance during rollouts or disputes. 
  •  Webinars & Resources: Keep your team informed and confident in navigating change. 
  •  Policy Updates: We can help you refresh sickness absence, flexible working, family leave, dismissal procedures, and more, keeping them in line with ERA 2025. 

 

 

Special offer: 10% Off Roots HR’s COMPLY Plus subscription

For a limited time, any COMPLY Plus subscription starting before 2nd of April 2026 will benefit from a 10% discount*. Perfect timing to ensure full coverage through the rollout of the ERA 2025.* 

*T&Cs apply 

 

Join our March webinar – Stay #HRfit for 2026 

We’re hosting a free webinar in early March 2026, designed for social sector HR and leadership teams. You’ll learn: 

  • Timetable of changes and critical compliance steps for 2026 
  • Practical planning workshops and case studies 
  • Q\&A with employment law experts 

 

 Sign up for our newsletter to stay informed—newsletter subscribers will receive priority booking for the March webinar. 

 

Ready to safeguard your social sector organisation? 

Adapting to ERA 2025 doesn’t have to be overwhelming. With Roots HR as your partner, you can stay compliant and supported through every step.  

Subscribe now to our newsletter, claim your 10% discount, and secure your spot on the March webinar. 

Let’s build a stronger, fairer social sector workforce in 2026—together. 

 

Legal & Compliance Pay & Benefits People & Equality

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