Employment Rights Act: what it means for your business
The Employment Rights Act 2025 came into force yesterday (6 April 2026), marking one of the most significant shifts in employment law in a generation. With wide-ranging reforms already in effect and more to follow over the next two years, scaffolding and access businesses need to act now to ensure they are compliant.
The most immediate change affecting employers is the introduction of Statutory Sick Pay from day one. The previous three-day waiting period has been removed, meaning SSP is now payable from the first full day of sickness. The earnings threshold that previously excluded lower-paid workers from eligibility has also been scrapped, bringing more employees into scope, although many will qualify for a lower amount than the standard weekly rate of £123.25 for 2026/27. Scaffolding businesses should review their absence reporting and self-certification arrangements as a priority.
From this month, paternity leave and unpaid parental leave both become day one rights, removing the previous service requirements of 26 weeks and one year respectively. Employers should update their contracts and HR policies to reflect these changes without delay.
Also taking effect this month are significant reforms to trade union law, including changes to the balloting process, notice periods before industrial action, and protections for workers taking action. Separately, a new Fair Work Agency has been established as an enforcement body outside the Employment Tribunal system, focusing on statutory minimum wage compliance and gangmaster licensing among other areas.
Looking ahead, employers should be aware that from January 2027 the qualifying period to bring an unfair dismissal claim will reduce from two years to six months. Critically, it is service from the point the legislation takes effect that counts, meaning any new starters joining on or after 1 July 2026 will qualify under the new rules. The current cap on unfair dismissal compensation will also be removed. Scaffolding businesses should review their probationary period arrangements, induction processes and performance monitoring of new employees well ahead of that date.
The wider context is significant. Employment tribunal backlogs currently stand at more than 61,000 open cases, and the volume of claims is expected to rise considerably as the qualifying service period reduces. Employers who receive a tribunal claim would be well advised to begin preparing their case promptly on receipt of formal notification.
Employment law specialist Gray Rigge, writing in the March edition of Scaffolding Insider, sums up the challenge facing employers: "further consultations on the detail of the Act are still ongoing, meaning the picture will continue to evolve. Staying close to those developments and taking professional legal or HR advice where needed is strongly recommended".
NASC members are encouraged to consult the March edition of Scaffolding Insider for a full breakdown of the change
