Employment Rights Act 2025: What nursery owners need to know now
Running a nursery in 2026 is already tricky enough with staffing pressures and rising costs. Add into that significant employment law changes, and it’s hard to know what you need to know.
Our partner Citation have pulled together what’s happened, what’s coming and what you can do now.
Already in force since April 2026
Statutory Sick Pay
From 6 April, SSP changed in two important ways:
- No more ‘waiting days’ – SSP is now payable from the first day of sickness absence, not day four
- No more earnings threshold – every employee qualifies, no matter what they earn.
For nurseries with part-time or variable-hours staff, this extends SSP to people who previously didn’t qualify. Lower earners receive either 80% of their average weekly earnings or the standard rate (£123.25 per week), whichever is lower.
The likely knock-on effect is more short-term absences and higher SSP costs. Solid absence management processes – consistent return-to-work conversations, self-certification completed every time, managers who know when to escalate – will keep this manageable.
Day-one parental leave rights
Both paternity leave and unpaid parental leave are now day-one rights meaning there’s qualifying service period needed.
This isn’t to be confused with statutory paternity pay which still requires 26 weeks’ service. But the right to take the leave is immediate, from the first day of employment.
With many nursery teams made up of staff of parenting age, it’s worth making sure your policies reflect this and your managers know how to handle requests.
The Fair Work Agency
On 7 April, the Fair Work Agency (FWA) was established – a new single enforcement body covering National Minimum Wage, holiday pay, and SSP.
The FWA is in a transitional year, but enforcement officers will be able to enter premises, request records, and issue penalties of up to 200% of any underpayment (capped at £20,000 per worker). The best thing to do right now is make sure your payroll records, holiday pay calculations and SSP records are accurate and easy to produce.
On the horizon and what to prepare for
Unfair dismissal from six months – 1 January 2027
From January, employees will be able to bring an unfair dismissal claim after just six months’ service, down from the current two years. The compensation cap will also go.
For nurseries, this puts more weight on how you manage the early months of employment. A few areas worth reviewing now:
- Probation period length – six months carries more risk than it used to; a shorter period with the option to extend may work better
- Check-in frequency – documented regular reviews through probation, not just a single meeting at the end
- Induction and onboarding – clear expectations from day one make a real difference.
Extended harassment duties – October 2026
From October, employers must take “all reasonable steps” to prevent harassment. This duty extends to third parties – parents, visitors, contractors.
In nursery settings, where staff have regular contact with parents at drop-off and collection, this is worth taking seriously. Updated policies, clear reporting routes, and manager training will all count towards demonstrating compliance.
How Citation can help
These are real changes, arriving at a time when nursery businesses are already stretched. You don’t have to work through them alone.
Citation supports nursery owners with HR, employment law and Health & Safety compliance – from policy and contract updates to manager training and day-to-day advice when things get complicated.
As an NDNA member, you’re entitled to a 10% discount on new client contracts. Call 0345 844 1111 or click here and quote ‘NDNA’ when you get in touch.
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