Most employers say they are still not fully prepared for the biggest overhaul of UK employment law in a generation, with unfair dismissal reforms emerging as their biggest concern ahead of further changes due to take effect.
New research suggests that while awareness of the Employment Rights Act 2025 is high, many organisations have yet to review the policies, contracts and procedures needed to comply with the legislation as implementation continues through 2026 and 2027.
Employers are preparing for a series of reforms covering dismissal rights, zero-hours contracts, statutory sick pay, trade union rights and family leave. But research by UK law firm Birketts found that 81 percent of HR professionals and business leaders described their organisation as only “somewhat prepared” for the Employment Rights Act, while just 9 percent considered themselves fully prepared.
In a survey of more than 270 HR professionals and business leaders, it found that employers were already planning significant changes to their employment practices, with more than 83 percent saying they were likely to revise probationary provisions before further reforms are introduced from January 2027.
Unfair dismissal tops concerns
The biggest concern identified by employers was the planned introduction of unfair dismissal protection after six months’ service, combined with uncapped compensation, which was cited by 70 percent of respondents.
Guaranteed hours for qualifying zero-hours workers ranked as the next biggest concern, followed by expanded trade union rights, restrictions on fire and rehire practices and the introduction of day one rights to statutory sick pay and enhanced family leave.
The Employment Rights Act received Royal Assent last year, but many of its provisions are being introduced in stages, requiring employers to update workplace policies over the coming months.
Early planning urged
Matthew Newnham, head of employment and partner at Birketts, said the research showed that many employers understood the significance of the legislation but had not yet completed preparations.
“Our research shows that while most employers recognise the significance of the Employment Rights Act 2025, many are still only part of the way towards being fully prepared. The scale of change is unprecedented, and organisations are having to navigate multiple complex reforms at once – often while balancing day-to-day operational pressures.”
He said the proposed unfair dismissal reforms represented a fundamental change in legal risk for employers.
“The move to full protection after six months, coupled with uncapped compensation, represents a fundamental shift in risk for employers and will require careful review of recruitment, performance management and dismissal processes.”
The findings suggest many organisations are taking a proactive approach to reviewing contracts and HR processes well before the remaining provisions of the legislation come into force.
Birketts said early planning would help employers identify compliance gaps, reduce legal risk and make implementation of the remaining reforms smoother as the new employment rights framework continues to be phased in.
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.
- William Furney
- William Furney
- William Furney
- William Furney
