UK organisations are facing a looming tribunal cliff edge, as confidence among HR leaders about readiness for the Employment Rights Bill contrasts with a striking lack of action across many large employers.
Despite growing pressure to prepare for the most significant overhaul of employment rights in a generation, many organisations remain at an early stage or have yet to assess the impact of the legislation at all. The result, experts warn, could be rushed and inconsistent responses that lead to costly legal disputes once the Bill becomes law.
A study published by consultancy Empowering People Group suggests a worrying mismatch between strategic intent and operational delivery. While HR leaders recognise the importance of getting ready, overstretched teams, limited investment and awareness gaps are slowing progress.
Preparation gaps widen as duties near
The research, drawn from a survey of 210 HR leaders in UK firms with more than 500 employees, found that just a small minority have completed a full impact assessment and developed an action plan. A similar proportion reported that their organisation either had not started assessing the Bill’s implications or did not know whether any work had begun.
Even among those that have started preparing, most remain in the early stages. More than a third said they were still in initial discussions or early research phases, while just over a quarter were midway through assessment. The lack of urgency comes despite the expectation that some duties under the Bill will take effect immediately upon Royal Assent.
Simon Fowler, chief executive of Empowering People Group, said the Autumn Budget may have offered short-term relief but warned that the heavy lifting for HR was still ahead.
“Following Rachel Reeves’s Autumn Budget, HR and business leaders are still navigating one of the most demanding people landscapes in years,” he said. “Rising National Minimum Wage rates, ongoing fiscal pressures and accelerating legislative change are reshaping pay strategies and tightening cost margins.”
“HR were waiting with bated breath for this Budget, but even though it isn’t as admin-burden heavy as anticipated, they need to double down on preparation for the Employment Rights Bill, because the real workload is still to come.”
Internal blind spots raise the risks
The report also uncovered uneven awareness of the Bill’s potential implications within HR teams themselves. While senior leaders rated their own understanding highly, nearly one in five said their wider teams were not well informed, raising the risk of inconsistent decisions, poor communication and increased case escalation.
Adding to the pressure, nearly half of those surveyed said their HR teams were already overstretched or experiencing burnout. This is despite most HR leaders describing employee relations transformation as a strategic priority. Only a third said their organisation was making significant investment in this area, with half reporting only moderate funding.
Fowler said that this combination of stretched capacity and uneven awareness could leave organisations scrambling to comply.
“The research shows a confidence that may be masking a lack of preparedness in action and training. To avoid rushed, late-stage compliance efforts that introduce inconsistencies and increase the risk of early tribunal claims, organisations need to complete their impact assessments, develop clear action plans and proactively evolve their ER processes now,” he said.
“HR leaders need to dedicate the time and resources required, strengthen awareness within their teams and ensure managers are equipped to handle the new duties from day one. Without this decisive investment in digital ER infrastructure, updated processes and stronger capability, the significant change to come will outpace their ability to respond.”
AI, stress and speaking up drive case complexity
The data also pointed to a marked rise in employee relations case volumes over the past year, with more than seven in 10 HR leaders reporting an increase. This rising tide was linked to a mix of structural and cultural factors, including workload stress, greater openness among employees and the emergence of generative AI tools.
According to the study, the top driver of new cases was rising workload and workplace stress, followed by employees being more willing to speak up. But nearly half of respondents also pointed to AI, saying it had made it easier for employees to generate legally structured grievances, putting further pressure on HR systems and case managers.
While the Employment Rights Bill has not yet received Royal Assent, observers have warned that some requirements are expected to apply immediately once enacted. These include changes to redundancy protections, flexible working rights and new rules around predictable working patterns, among others.
With case law likely to evolve rapidly after implementation, the cost of being caught unprepared could be high. Empowering People Group is calling on HR leaders to prioritise early implementation, workforce training and clearer escalation routes to reduce the risk of early-stage non-compliance.
The group’s report, ERB Research: The compliance tsunami, urges employers to update policies, refresh manager training and develop a long-term employee relations strategy grounded in capability, consistency and legal compliance.
