The HR and health & safety software provider surveyed business leaders across various industries – including construction, retail, education, healthcare, finance, and transportation – about their knowledge, understanding, and preparedness for key reforms. These include new day-one rights, expanded flexible working, and changes to statutory sick pay (SSP).

The survey respondents were mostly small business owners, with 47% having 1-10 employees, 34% employing 11-50 staff, and 19% with more than 50 employees.

Key insights from the research include:

• Lack of awareness: 35% of business owners are unaware of Labour’s proposed reforms, and 48% are unclear on the potential legal risks.
• Compliance concerns: 42% of respondents lack confidence that their current HR policies comply with existing employment law.
• Preparedness for reform: Only 12% of business owners feel knowledgeable about what operational changes they would need to make if the reforms pass.
• Readiness to act: Just 19% believe they are fully prepared to implement policy changes, with 36% admitting they are unsure or ill-equipped.

Additional findings show:

• Expert advice sought: 60% of business owners are likely to seek expert advice to navigate the reforms, yet only 23% are currently accessing third-party support.
• Information gathering: 57% of business owners are staying informed by monitoring news and reading online content.
• Time concerns: 42% identify the time required to implement changes as their biggest worry.

The research highlights a growing need for support as business owners face significant legislative changes ahead.

Lucy Cobb, Advice Operations Manager at BrightHR and employment law specialist, says: “With a new Labour Government now in situ and already starting to implement one of the biggest shake-ups to employment law in decades, it is imperative that businesses prepare now for substantial changes to their HR operations, policies, and processes. 

“Our research shows that, despite most business owners being aware that Labour has proposed over 60 changes to employment law, many feel under-confident about the steps they will need to take to implement these changes correctly. A sizeable 81% of those surveyed do not feel fully equipped to make the policy and procedure changes needed to implement employment law reforms, and yet only 23% are actively accessing third-party support to help them prepare.

“Getting employment law wrong can be incredibly costly, leaving businesses at risk of tribunal claims, legal fees, and reputational damage. Especially now, with over 60 employment law reforms on the horizon affecting everything from sick pay and parental leave to new day-one rights, business owners must act accordingly to ensure they have the correct policies, procedures, and documentation in place when new legislation comes into effect.

“I would advise business owners to seek expert legal support if they are unsure about what they will need to change in their business to stay compliant. Expert advisors can help business owners determine exactly what they will need to do to ensure their policies and processes are in line with the laws as and when they come into effect, while comprehensive HR software like BrightHR can provide them with the tools, software support and document templates they will need to adjust their operations efficiently and compliantly.”