New rights to sick pay and parental leave for millions of workers

The UK government has introduced significant employment law reforms that expand access to Statutory Sick Pay (SSP) and parental leave rights. These measures represent one of the most substantial updates to workplace protections in recent years and are intended to support employees facing illness or family responsibilities.

The reforms remove the 'lower earnings limit' for SSP, making it available to all workers regardless of their pay level from the first day of illness. Previously, employees had to earn an average of at least £123 per week to qualify, which excluded many part-time and low-paid workers. Furthermore, the three-day waiting period has been abolished, meaning eligible employees are entitled to SSP from the very first day they are off sick, rather than the fourth.

Expanded parental leave rights

In addition to sick pay reforms, the government has significantly expanded parental leave rights to provide greater flexibility and support for working parents. Paternity leave and unpaid parental leave will now become day-one rights. This means employees no longer need to complete a qualifying period of continuous service (previously 26 weeks for paternity leave and one year for unpaid parental leave) before they can take time off to care for their children.

Furthermore, the rules surrounding bereavement leave have been broadened. The right to statutory bereavement leave, previously restricted to parents who lost a child under the age of 18 or suffered a stillbirth, has now been extended to cover the loss of any close family member.

Flexible working as the default

The reforms also strengthen the right to request flexible working. While employees already had the right to request flexible working from their first day of employment, employers are now required to accommodate these requests unless they can demonstrate a genuine business reason for refusal. This shifts the presumption in favour of flexible working, placing a higher burden on employers to justify why a request cannot be met.

What employers need to do

These changes will require employers to update their HR policies, payroll systems, and management practices. The removal of the SSP waiting period and lower earnings limit will inevitably increase the cost of sick pay for many businesses, particularly those employing part-time or lower-paid staff.

Employers should review their current sick pay and leave policies to ensure they comply with the new day-one rights. It is also essential to train line managers on how to handle flexible working requests under the new, stricter framework. By preparing now, businesses can manage the transition smoothly and ensure they remain compliant with the latest employment legislation.