Employers face compliance test as employment rights reforms take effect

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The changes, which took effect on April 6 under the Employment Rights Act 2025, introduce a series of updates spanning family leave entitlements, statutory sick pay and trade union access, with further measures expected later this year. The reforms represent one of the most wide-ranging updates to UK employment protections in recent years.

Early signals suggest that while many organisations have been preparing for the changes, concerns remain about how they will operate in practice, particularly in relation to workplace relations and the administrative burden placed on employers.

Day one rights and sick pay changes take effect

Among the most immediate changes is the expansion of so-called “day one” rights, allowing employees to access certain family-related entitlements from the start of their employment rather than after a qualifying period. This includes rights linked to parental leave and flexible working, part of a broader push to improve job security and work-life balance.

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Reforms to statutory sick pay also form a key part of the package. The government has moved to remove waiting periods and widen eligibility, meaning more workers will qualify for sick pay from the first days of illness. The aim is to reduce presenteeism and support healthier workplaces, though employers have raised concerns about cost implications and potential misuse.

The legislation also introduces changes to trade union recognition and access, making it easier for unions to engage with workers across different workplaces. These reforms are expected to have a gradual impact over the coming months as businesses adapt to new engagement requirements.

Employers warned on compliance and communication

The Chartered Institute of Personnel and Development (CIPD), the professional body for HR and people development, said organisations must now move beyond preparation and ensure full compliance with the new rules.

Peter Cheese, its chief executive, warned that employers needed to act quickly to update policies and ensure staff understood the changes. “April 6 marks a significant moment for some of the most substantial elements of the Employment Rights Act 2025. The conversations we’ve been having with employers suggest many have been preparing for this moment, but all organisations must be aware of the reforms that now become law,” he said.

He outlined the breadth of the changes and the need for organisations to adapt their internal processes. “The changes are far reaching, from the expansion of day one family-related rights, to changes to statutory sick pay, reforms to the statutory recognition process for trade unions, and penalties for non-compliance. The focus for employers now needs to shift from preparation to compliance.”

Cheese stressed that communication would be critical, particularly for line managers expected to implement the changes on the ground. “To do this, employers need to share updated workplace policies and clearly communicate these to all staff, particularly line managers who will need to understand the potential implications for their teams and the queries they may raise.”

Risk of increased workplace conflict

Alongside the operational changes, employers are also being warned to prepare for potential tensions in the workplace as new rights take effect.

Drawing on recent survey data, Cheese pointed to expectations of rising conflict linked to the reforms. “The CIPD warns that some elements of the Act may lead to increased conflict at work. The CIPD’s February Labour Market Outlook found that more than half of employers surveyed (55%) anticipate a rise in workplace conflict from one or more elements of the Act,” he said.

“This month’s changes to trade union recognition pave the way for the next phase of reforms relating to trade unions coming in across this year, so there’s a little more time to prepare.”

He noted that while some organisations have experience working with unions, others may be entering unfamiliar territory. “Many businesses will have worked with unions before but for others it will be entirely new. This is the time for employers to be aware of changes which give the rights of access of unions to every workplace, and how they should prepare for greater engagement with trade unions.”

Smaller firms face greater compliance pressure

Smaller businesses in particular may face challenges navigating the new legal landscape, especially where HR expertise is limited.

Cheese warned that the breadth of reforms could leave some employers exposed if they fail to keep pace with the changes. “All employers need to be aware of the reforms to workers’ rights happening this year, and look at guidance from the Government, ACAS and bodies including the CIPD, bringing in HR expertise as needed,” he said.

“This will be especially true for smaller businesses, who often have limited resources and experience of labour market regulations, and could unintentionally fall foul of the law given the breadth of worker rights reforms happening this coming week and later this year.”

Further reforms still to come

The April measures mark only the first phase of a wider programme of employment law reform, with additional provisions expected to be introduced through secondary legislation over the coming months.

Cheese said employers should treat the current changes as part of a longer transition. “April marks the first set of significant changes coming into force but there is a considerable roadmap from Government outlining what is still to come,” he said.

“As the CIPD we are supporting our members with practical guidance and will continue to engage with government to reflect insights from employers and HR professionals as further reforms move through secondary legislation.”

Experts say the the immediate challenge for employers is ensuring that policies, processes and people management practices are aligned with the new legal framework, while preparing for further change in what is becoming an increasingly complex employment landscape.

William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.

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