If you employ Personal Assistants using a Direct Payment, it’s important to understand upcoming changes being made to employment law with the Employment Rights Act 2025. This new law introduces significant updates to workers’ rights and employer responsibilities. The employment law changes included in the Act will happen in 2026 and 2027. Here’s what you need to know.
Key changes coming in 2026
Statutory Sick Pay (SSP)
From 6 April 2026, employees will be entitled to SSP from the first day of sickness, removing the previous 3 day waiting period. The earning threshold will also be removed; employees will no longer have to earn over a certain amount to qualify for SSP. If you currently employ Personal Assistants, you will need to inform them of this change, a template letter is available here.
Parental and paternity leave
From 6 April 2026, employees can give notice for paternity leave or parental leave from their first day of employment. The restriction on taking paternity leave after shared parental leave will be removed.
The Fair Work Agency
A new government body, the Fair Work Agency, is being set up in 2026 to enforce employment rights such as minimum wage, holiday pay, and SSP.
Adult Social Care Negotiating Body
There will be a new negotiating body for adult social care, who will be responsible for negotiating fair pay agreements. This will start in October 2026, with negotiations expected to start in 2027 and the first agreements taking effect in 2028.
Employment tribunal time limits
From October 2026, time limits for making a claim to an employment tribunal will increase to 6 months for all claims. The current time limit for most claims is 3 months. This means even short-term employees can challenge dismissals, so maintaining clear documentation is more important than ever.
The Employment Rights Act 2025 introduces important changes for Direct Payment employers. While some updates may seem complicated, careful preparation, including updated contracts, clear policies, and accurate record-keeping, will help you stay compliant and support your staff. Planning early can save stress and prevent legal issues down the line.
If you want to know more about the upcoming changes, or have any questions, please contact our Information, Advice and Guidance (IAG) team by phoning 01903 219482 (option 3), or emailing advice@independentlives.org.