2026 ‘Day One’ Rights Guide: What Every Employee & Employer Needs to Know

The Employment Rights Act 2025 marks the most significant upgrade to workplace rights in a generation, reshaping the legal landscape for both employers and employees.

Employment Law Solicitor, Katie Ash, explains that “central to these reforms are what are known as ‘Day One’ rights. While some protections now apply from the very first day an individual starts work, others now have shorter qualifying periods, making key safeguards accessible far sooner than before. Together, these changes aim to modernise employment standards, better reflecting the realities of today’s workforce and ensuring a fairer, more responsive framework for modern working relationships”.

‘Day One’ Rights: Starting April 2026

Statutory Sick Pay (SSP):

• The three-day waiting period has been removed, meaning SSP is now payable from the first day of illness.
• The Lower Earnings Limit has also been abolished, so employees earning under £125 per week are now eligible to receive SSP.

Paternity Leave:

• Now a Day One right, removing the previous requirement for 26 weeks’ continuous service.

Parental Leave and Parental Bereavement Leave:

• Employees are entitled to unpaid parental leave from the start of their employment.
• Parental Bereavement leave is also available from Day One, ensuring immediate access to time off in the event of the loss of a child.
  
  

Unfair Dismissal Changes

One of the most notable changes introduced by the Employment Rights Act 2025 is the reduction of the qualifying period for ordinary unfair dismissal claims from two years' continuous service to six months.

This significantly accelerates the point at which employees acquire protection from unfair dismissal, requiring employers to take a more proactive approach to performance management and probationary reviews during the early stages of employment.

Employers should be particularly mindful of statutory notice provisions: in practice, the critical deadline for terminating employment before unfair dismissal rights arise will be a few weeks in advance of the 6 month continuous service mark as statutory notice can count towards an employee's qualifying service, so notice needs to be completed before the “six months less one week” mark. Once an employee reaches six months' service, they will generally benefit from full unfair dismissal protection, meaning any dismissal must be supported by a fair reason and a fair process.

However, certain protections have long been available from the first day of employment and remain unchanged by the new legislation. Employees have always been protected from dismissal connected to pregnancy or maternity, making a protected disclosure (whistleblowing), or raising health and safety concerns, and these automatic unfair dismissal rights continue to apply regardless of length of service.

Cap on Compensation

The Government has also committed to removing the statutory cap on compensation for ordinary unfair dismissal claims, which was previously limited to the lower of one year’s gross pay or the statutory maximum award (most recently £118,223 or one year’s pay).

This represents a significant shift in the employment law landscape, substantially increasing the potential financial exposure arising from unfair dismissal claims. Once the cap is removed, ordinary unfair dismissal claims will sit alongside discrimination and whistleblowing claims as a category of employment litigation where compensation is effectively uncapped, elevating both the commercial and reputational risks associated with dismissal decisions.

Practical Tips for Employers in 2026

Employers should use 2026 as an opportunity to review their people management processes and ensure they are prepared for the new legal landscape.

Manage probation periods proactively: The reduction from a two-year qualifying period to six months means employers will have a much shorter window in which to assess performance, conduct and suitability. Regular probation review meetings, clear objectives and timely feedback will be essential, and any concerns should be identified and addressed early.

Audit payroll and absence management systems: Employers should ensure that payroll processes are capable of accommodating Day One entitlement to Statutory Sick Pay (SSP) and the removal of the Lower Earnings Limit.

Update Contracts, policies and employee handbooks: Employers should review and remove references to employees needing 26 weeks’ service to qualify for paternity leave, unpaid parental leave and other family-friendly rights that will become available from the first day of employment.

Specialist Advice from Banner Jones

Whether you’re an employer preparing for the changes introduced by the Employment Rights Act 2025 or an employee seeking advice on your day one employment rights, our experienced Employment Law team can help.

We provide clear, practical advice to employers and employees on workplace issues and can support employers with reviewing contracts, policies, probation procedures and dismissal processes to ensure compliance with the evolving legal landscape. To discuss your circumstances or arrange a consultation with one of our employment law solicitors in Sheffield, Chesterfield, Mansfield or Dronfield, contact us today.

FAQs about ‘Day One Rights’ Changes

Does the new 6-month unfair dismissal rule apply to me if I started my job before the law changed?

Yes. The Government has indicated that employees who already have at least six months’ continuous service when the new rules come into force will immediately benefit from ordinary unfair dismissal protection. Employees with less than six months’ service will gain protection once they meet the six-month threshold.

Will I be entitled to Paternity Pay from day one, or is it just the Paternity Leave that is a day-one right?

The Employment Rights Act 2025 makes Paternity Leave a Day One right, removing the previous service requirement. However, eligibility for Statutory Paternity Pay remains subject to separate statutory conditions, including earnings requirements. Employees should therefore check both their entitlement to leave and any applicable entitlement to statutory pay.

How do these new 2026 rights apply to agency workers or those on zero-hours contracts?

Many of the reforms are intended to extend greater protection to workers in non-traditional working arrangements, including agency workers and individuals on zero-hour contracts. The precise rights available will depend on employment status and the specific provision in question, but the overall direction of travel is towards increased security, predictability of hours and boarder access to employment protections.

Can I take Unpaid Parental Leave from my first day on the job to look after my child during a school emergency?

Under the Employment Rights Act 2025, unpaid Parental Leave becomes a Day One right in the UK, meaning eligible employees will no longer need a qualifying period of service before accessing it. This will allow parents to take parental leave from the start of their employment, subject to the usual eligibility criteria relating to parental responsibility for the child. If the situation is an unexpected emergency involving a dependent, employees may also have a separate right to time off for dependants.