Updated
Updated · Business News Wales · Jul 17
UK Extends Statutory Sick Pay to Day 1 From April 2026, Scraps Earnings Floor
Updated
Updated · Business News Wales · Jul 17

UK Extends Statutory Sick Pay to Day 1 From April 2026, Scraps Earnings Floor

3 articles · Updated · Business News Wales · Jul 17

Summary

  • 6 April 2026 brought the first live change under the Employment Rights Act 2025: statutory sick pay now starts on the first day of illness, not the fourth, and no minimum earnings threshold applies.
  • Those changes widen eligibility and raise immediate payroll, absence-management and cost-planning demands for employers, especially businesses that have relied on existing probation, sickness and casual-labour practices.
  • October 2026 is set to lengthen employment tribunal claim deadlines to 6 months from about 3 months, extending uncertainty after dismissals, resignations and workplace disputes.
  • 1 January 2027 will cut the qualifying period for ordinary unfair-dismissal claims to 6 months from 2 years and remove the compensatory-award cap, increasing pressure to review contracts, probation processes and settlement strategy now.
  • The wider 2027 package also targets zero-hours scheduling, flexible-working refusals and dismissal-and-rehire practices, making the Act a phased overhaul rather than a single rule change.

Insights

New hires will soon gain full dismissal rights in six months. Is the traditional probationary period now obsolete for UK firms?
With unfair dismissal payouts soon becoming limitless, are million-pound awards against UK employers the new normal?

The 2026 Statutory Sick Pay Reforms: What the UK’s Biggest Employment Law Shake-Up Means for Workers and Employers

Overview

From 6 April 2026, the UK’s Statutory Sick Pay (SSP) system will change significantly, as required by the Employment Rights Act 2025. The reforms remove the Lower Earnings Limit, which previously excluded many low-paid and vulnerable workers from SSP, and eliminate the three-day waiting period, so sick pay is now available from the first day of absence. These changes aim to broaden access and simplify the process, marking a new era for employee welfare and employer responsibilities. As a result, more employees will have financial security during illness, while employers face new obligations and costs.

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