New research from BrightHR highlights uncertainty among business owners in the UK about how they will need to prepare for Labour’s extensive agenda for employment law reform.

The leading HR and health & safety software provider surveyed business owners across the UK about their awareness, understanding, and preparedness for Labour’s incoming employment law reforms, including the introduction of new day-one rights, the expansion of flexible working, and reforms to statutory sick pay (SSP).

The survey was sent to business owners in all major industries in the UK, including construction, education, retail, healthcare, financial services, and transportation. The majority of respondents were small business owners with 1-10 staff members (47%). A further 34% had between 11-50 staff and 19% had 50+ staff.

Key findings:

• Awareness: 35% of business owners are unaware of the changes being proposed by Labour, with a further 48% unaware of the employment law risks associated with the proposed changes
• Confidence in current operations: 42% of business owners are not confident that their HR policies and procedures are compliant with existing employment law regulations
• Confidence to implement changes needed: Only 12% of business owners report they know what to change, in terms of their operations, policies, and processes, if Labour’s proposed changes come into effect
• Readiness to implement changes needed: Only 19% of business owners report that they are wholly equipped to make the policy and procedure changes needed to adapt to the proposed reforms, with 36% unsure or unequipped

Other statistics from the research show that:

• 60% of business owners are likely or highly likely to seek expert advice in understanding and implementing the proposed changes, but only 23% are currently accessing third-party support to prepare for legislative change
• 57% of business owners are monitoring the news and reading information online to prepare for the proposed legislation changes
• 42% of business owners cite their biggest concern as the time it will take to implement the changes

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.”

Click here for a full analysis and breakdown of the survey results.