Making flexible working the default option could be the most difficult aspect of the Employment Rights Bill for employers to implement, according to a new survey of UK HR professionals.
The research, commissioned by HR software provider Ciphr, polled 300 HR decision-makers to identify which of the government’s proposed reforms would be most difficult to implement in terms of time, resources and cost. The Employment Rights Bill introduces sweeping changes to UK workplace regulations, with several policies still under consultation but many already on track for phased introduction.
Among the most pressing issues cited by employers is the requirement to improve access to flexible working, with over a fifth (22%) of respondents identifying it as the biggest challenge. The legislation aims to make flexible working the default where practical, shifting the burden of justification onto employers, who must now clearly consult with staff before refusing requests and explain their reasoning.
Concerns over on-site roles
The survey found that employers in industries where remote or hybrid work is less common were most likely to anticipate difficulties in meeting the new flexible working obligations. This includes 35% of retail organisations, 33% of those in hospitality, leisure and tourism, 29% in engineering, manufacturing and construction and 25% in transport and logistics.
While existing law gives employees the right to request flexible arrangements such as compressed hours or remote working, employers currently have broad scope to refuse requests based on one of eight statutory business grounds. The new rules significantly tighten that process and place more emphasis on transparency and consultation.
Tribunals, sick pay and equality plans also rank high
Other top concerns include a strengthening of legal protections for workers involved in industrial action, identified by 21% of respondents, and an extension of employment tribunal claim limits from three to six months, selected by 17%.
Several measures tied in fourth place with 16% of respondents each. They include: extending statutory sick pay by removing the lower earnings limit and waiting period; introducing day-one rights to paternity leave; changes to the qualifying period for unfair dismissal; and a requirement for organisations to offer guaranteed hours to eligible zero and low-hours workers.
Organisations with 250 or more employees face an additional reporting obligation from April 2027, when publishing Equality Action Plans becomes compulsory. This includes reporting on gender pay gaps and menopause-related actions. Among larger employers surveyed, 22% cited this requirement as their most significant compliance challenge.
The administrative and financial implications of new responsibilities were particularly concerning to organisations with larger workforces. Among businesses with over 1,500 employees, 27% cited the cost of providing statutory sick pay as their main challenge, while 23% expressed concern about new liabilities for protecting staff from third-party harassment.
Smaller employers, defined in the survey as having between 10 and 49 staff, were most likely to identify statutory probation periods and stronger protections for pregnant workers and new mothers as their biggest hurdles, both selected by 23% of respondents in that group.
A complex legislative landscape
Claire Hawes, chief people and operations officer at Ciphr, said the findings showed how embedded working culture was slow to shift in some sectors, despite the widespread adoption of hybrid models during the pandemic.
“I’m encouraged but also a little surprised to see that expanding the remit of flexible working still tops the list of challenges for organisations,” she said. “After years of hybrid working, and the proven business benefits of supporting good work/life balance for employees, you might expect employers to feel more confident. But the data tells us the difficulty now lies less in writing the policy and more in embedding fair and transparent decision-making, especially in sectors where presence on-site is the norm.”
She added that while some frontline roles simply cannot be done remotely, flexible working should ultimately be about giving people more autonomy over how they work.
“There’s no doubt that many of these employment reforms are going to prove complex, admin-heavy, and perhaps costly for some employers to implement,” she said. “Whether it’s managing multiple flexible-working requests, meeting new consultation steps, publishing Equality Action Plans or, potentially, dealing with increased employment tribunal claims, HR will be at the forefront and in the firing line.”
Hawes believes the reforms offer long-term business advantages, even if the short-term lift is significant. “Done well, the changes introduced by the Employment Rights Bill could help employers to broaden talent pools, boost retention and engagement, reduce absenteeism and create more inclusive, trusting workplaces,” she said.
