Retailers are being urged to review employment policies and workforce planning ahead of significant changes to employee rights coming into force in April.
Reforms under the Employment Rights Act 2025 will introduce new family-friendly leave entitlements and expanded statutory sick pay provisions that could affect staffing, scheduling and HR processes across the retail sector.
From 6 April 2026, employees will gain day-one rights to paternity leave and unpaid parental leave, removing the current qualifying periods of 26 weeks and one year respectively.
Employees will also be able to take paternity leave after shared parental leave, which is not currently permitted.
The legislation will also introduce a new entitlement to bereaved partner’s paternity leave, allowing fathers or partners to take up to 52 weeks’ leave if the mother or primary adopter dies.
This will be available as a day-one right, although whether the leave is paid will remain at the employer’s discretion.
At the same time, statutory sick pay (SSP) rules will expand significantly. SSP will become payable from the first day of sickness absence, replacing the current three-day waiting period.
The lower earnings limit will also be removed, meaning some lower-paid and part-time workers will qualify for SSP for the first time.
From April, the SSP flat rate will rise to £123.25 per week, with employees receiving either that amount or 80 per cent of their average weekly earnings, whichever is lower.
Kathryn Walters, senior associate in the employment team at law firm Clarke Willmott, said retailers should act now to prepare for the operational impact of the reforms.
“Retailers already operate in a challenging environment, with tight margins, rising rents and fluctuating footfall,” she said.
“These April 2026 reforms will affect day-to-day operations, from managing leave requests to planning staffing and scheduling.”
Walters said retailers should begin preparing by reviewing contracts, strengthening recruitment processes and ensuring managers are trained on the new rules.
“By reviewing policies, updating contracts and training managers now, businesses can protect their workforce, maintain stability and manage staffing challenges such as high turnover roles, seasonal recruitment and temporary cover,” she said.
“This isn’t just a compliance exercise – it helps reduce the risk of disputes or penalties.”
She added that businesses should focus on three key steps: reviewing contracts and policies to ensure they reflect the new statutory entitlements; strengthening recruitment and onboarding processes; and training managers to apply policies consistently across the workforce.
“Employees are increasingly aware of and exercising their statutory rights,” Walters said. “It will be essential that managers understand and implement policies fairly and consistently if employers want to limit exposure to Employment Tribunal litigation.”
The reforms form part of a broader overhaul of UK employment law. A new Fair Work Agency will launch in April 2026 to oversee inspections and enforcement of employment rights.
Further measures under the legislation are expected to roll out later this year and into 2027, including changes to unfair dismissal rules, updates to zero-hours contracts and new redundancy protections.
“The Employment Rights Act marks the biggest change in employment law in a generation aimed at strengthening employee rights and improving workplace protections,” Walters said.
“Retailers, and indeed all employers, are advised to prepare accordingly as these changes start to trickle out over the next 12 to 18 months.”
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