Charities & The Employment Rights Act 2025: ready or not?
The Employment Rights Act 2025 (the ERA) brings a significant wave of reforms to UK employment law. While many of these changes apply to all employers, they carry particular importance for charities, where people-first values, tight budgets and complex workforce structures often intersect.
Several new ERA measures came into force on 6 & 7 April 2026, with more arriving later in the year. Now is the moment for charities to get ahead—protecting staff, supporting volunteers and ensuring compliance while continuing to deliver vital services to communities.
So what are the recent changes that charity leaders need to ensure they are aware of?
April 2026 changes
- Increased cap on protective awards in redundancy situations
Where an employer is proposing to make 20 or more employees redundant at one establishment within 90 days or less they are under a duty to collectively consult with these employees. A failure to do so can result in claims for a "protective award". Previously the protective award was for up to 90 days uncapped pay for each affected employee; this has now doubled to up to 180 days' pay for each affected employee i.e. approximately 50% of annual wage costs
For charities navigating restructures, redundancies or funding challenges, this significantly raises the financial risks of non-compliance.
- Day-one rights to paternity leave and unpaid parental leave
These entitlements are now available from the first day of employment.
In a sector built on compassion and people-centred values, this supports a more inclusive and family-friendly culture — something many charities strive to lead on.
- Statutory sick pay (SSP) now a day-one right for all workers
A major development for charities heavily reliant on casual workers, sessional staff and support workers.
This change helps strengthen workforce wellbeing but will require careful budget planning for charities.
- Sexual harassment disclosures expressly protected under whistleblowing law
Whistleblowing legislation which protects a worker reporting certain types of wrongdoing now expressly includes disclosures about sexual harassment.
- Simplified trade union recognition process
With trade unions only needing 10% support in the proposed bargaining unit and only a simple majority to win a ballot — charities may see a rise in trade union recognition requests.
This is particularly relevant in larger frontline or social care organisations.
- New requirement to keep annual leave records for six years
A practical but important administrative change especially for charities with diverse worker types and variable working hour practices in place.
- Bereaved partners' leave
Bereaved partners’ leave - where a mother or adopter dies during childbirth or within the first year - has been extended from 2 weeks to 52 weeks. There is however no statutory pay applicable to such leave.
- Introduction of the Fair Work Agency
The ERA also establishes the Fair Work Agency (FWA), a single enforcement body for workers’ rights.
The FWA brings together (1) the Employment Agency Standards Inspectorate (2) the Gangmasters and Labour Abuse Authority and (3) HMRC’s national minimum wage enforcement teams
The FWA will gradually expand to include enforcement of sick pay and holiday pay, making it a key body that charities will need to engage with in light of the FWA's oversight and enforcement powers.
The takeaways for charities — at a glance
By taking proactive steps, charities can continue to champion good employment practices while ensuring they remain resilient and mission focused.
Policies, employment contracts, volunteer agreements and internal processes will need reviewing and updating in light of the above and to ensure compliance.
Many charities will also need to revisit budgeting, workforce planning and operational models to ensure they’re fit for purpose under the new framework.
Our employment & pensions team can support you with all of this — from updating documents to advising on practical implementation so you can stay ahead of the employment reforms with confidence.
Is there more on the horizon?
Looking ahead to October 2026 and into 2027, charities can expect further waves of ERA measures, being implemented including the introduction of six month unfair dismissal rights, tighter rules on fire and rehire practices, and new protections aimed at reducing the use of zero hours contracts. These changes will shape how charities manage their workforce, engage volunteers, and plan for organisational change.
For more detail of these future changes, visit our HR Law Hub, where you’ll find detailed briefings, bulletins, and webinars offering practical guidance on navigating the ERA reforms confidently.
