As the UK moves closer to enacting the proposed changes to the UK Employment Rights Bill, a new survey of employer sentiment that Indeed Flex conducted in November, shows high awareness, rising concern and shifts in workforce strategy among businesses.
Employers brace for regulatory shift
According to the findings, the vast majority of employers are aware of the proposed changes (88%), with nearly two thirds (63%) concerned about what it will mean for their business both in terms of operation and workforce.
- 36% identify expanded day-one rights as the biggest risk to their operations.
- 37% anticipate increasing fixed-term contracts and part-time roles.
It is clear that businesses are not waiting for the Bill to be passed before considering how they might adapt, to ensure they are ready to comply with the new rules when they come into effect.
- 60% say they are considering increased investment in automation or technology to offset costs and complexities that will come with the new changes.
- On the compliance front, 89% of businesses that use managed service providers (MSPs) or third-party workforce partners expect their reliance on them to increase and 66% of businesses that don’t currently use MSPs or third-party partners say they are more likely to use them in the future to help with compliance.
What this means for business strategy
The high level of cost concern reflects the fact that increased employee rights, administrative demands and potential shifts in employment models are likely to affect overheads. One respondent said “it’s another cost increase for struggling businesses.”
The anticipated increase in automation or technology investment further underlines that employers view the changes as more than just a HR issue; it’s business-wide. Some businesses are seeing this as a necessary and positive change. One respondent said the changes “will improve my business and growth in the long run, workers should be taken care of and made a priority.”
Finally, the strong intention to lean on MSPs and third-party workforce partners reflects a growing trend: companies are looking for specialist support to help manage compliance, administrative burden and contingent-workforce complexity.
“We are watching the developments of the Bill very closely and are ready to support our clients.” said Novo Constare, CEO and Co-founder of Indeed Flex. “Increased admin and compliance risk is an understandable concern, a lot is changing, but that’s where an MSP like ours can make everything easier, for businesses and workers.”
Looking ahead
While the final form of the UK Employment Rights Bill remains subject to parliamentary approval and royal assent, the message from UK employers is unequivocal: they are watching closely, and they are scenario planning now.
By proactively reviewing cost models, workforce structure, automation strategies and partner ecosystems, businesses aim to position themselves not just to comply, but to continue operating efficiently and flexibly in the evolving employment rights landscape.
