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Only 17% have completed an impact assessment and produced an action plan.
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17% haven’t started assessing the Bill at all or don’t know if assessment has started.
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19% of HR teams are not well aware of the Bill’s potential impact.
Cheshire, 4 December 2025 – New research from Empowering People Group reveals a widening gap between HR leaders’ confidence in their Employment Rights Bill (ERB) readiness and the actual level of preparation inside UK organisations.
The ‘ERB Research: The compliance tsunami’ report, which surveyed 210 HR leaders in companies with more than 500 employees, shows that only 17% of organisations have completed an impact assessment and developed an action plan. A further 17% either haven’t started assessing the Bill’s impact or don’t know if any assessment has begun, leaving nearly one in six large employers effectively unprepared for the most significant shift in employment rights in a generation.
Even among organisations that have begun work, most remain at an early stage – 36% are only in initial discussions or preliminary research, while 27% are still midway through a formal assessment. This slow pace leaves little time to prepare for duties that will take effect immediately once the Bill receives Royal Assent, leading to a significant rise in tribunal risk.
Simon Fowler, CEO at Empowering People Group. said:“Following Rachel Reeves’s Autumn Budget, HR and business leaders are still navigating one of the most demanding people landscapes in years. 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.”
The report highlights awareness gaps within HR teams as part of the problem. While HR leaders themselves report high personal awareness, 19% say their HR teams are not well aware of the Bill’s potential impact – a disconnect that risks last-minute pressure, inconsistent decisions and increased case escalation.
At the same time, HR functions are already stretched – 45% of HR leaders cite “overstretched teams or burnout” as a key concern linked to the ERB. The research shows that although 95% of HR leaders classify employee-relations transformation as a medium to very high strategic priority, only 34% say their organisation is making a “significant investment”. Half (50%) report only “moderate investment”, suggesting many HR teams may lack the internal capacity to handle the scale of the upcoming change.
The rising volume and complexity of Employee Relations (ER) cases further heighten the risk. Seventy-one percent of organisations have seen an increase in ER cases over the past year. When asked what’s contributing to this, the primary causes were workload and workplace stress (38%) and employees having greater willingness to speak up (32%). At the same time, nearly half (46%) say the contributing cause is AI enabling employees to raise more robust, legally-structured grievances, thus adding pressure.
“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. 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,” concluded Fowler.
To explore the full findings and recommendations, download the complete Employment Rights Bill research report here.
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About The Empowering People Group
The Empowering People Group has four dedicated businesses, AdviserPlus, Working Transitions, Halborns and Learning Nexus, which drive client business performance through people performance.
AdviserPlus optimises the management of employee relations processes for HR, line managers and employees by combining cloud technology, data insight and expert guidance.
Through AdviserPlus’ case management technology and people support, the business helps line managers to feel confident and capable when dealing with employee relations issues without introducing risk to the business. It empowers leaders, engages people and drives efficiency.
Employee relations transformation helps HR to be viewed as a strategic partner, bringing labour savings through digitalisation of processes or reduction in absenteeism costs with MI and analytics, impacting the bottom line and delivering people performance improvements.
