New research from WorkNest has revealed that more than three quarters of businesses have yet to complete an impact assessment for the Employment Rights Bill reforms, leaving many organisations ill equipped for some of the most significant workplace legal changes in over a decade.
53% of HR and business leaders surveyed by WorkNest say they have not yet carried out an impact assessment, and a further 26% said they have no plans to do so. Just 5% have completed one, and 16% report they are currently in the process of doing one.
There is also almost zero confidence that line managers are fully prepared, with just 1% saying their middle management is ‘fully prepared’. Half of HR professionals (51%) described their line managers as unprepared and 31% said they are only partially ready.
With managers responsible for implementing new rights, policies, and processes day-to-day, this poses a significant operational and legal risk.
Patrick Caroll-Fogg, Employment Law Adviser at WorkNest said: “Talks about the Employment Rights Bill started some time ago and we heard so much about what was coming in 2026 and 2027 that many employers probably felt it was a way off. The reality is that it’s not. It’s fast approaching and the impact will be vast, employers really do need to act now and we recommend that an impact assessment is the essential starting point.
“Identify where your biggest organisational risks lie, highlight the systems and policies that need redesigning, and determine the training investment needed for managers. If businesses do this, they will start to build a credible roadmap to being compliant.”
When asked which area of the reforms they believe poses the greatest risk of grievances or tribunal claims, respondents most frequently cited harassment and third-party liability duties (42%). This reflects growing employer concern about broadening responsibilities and the consequences of non-compliance.
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