75% of businesses unprepared for new employee rights rules, warns lawyer
Roy Magara, solicitor advocate and founder of Magara Law, said: “Many organisations are still operating with outdated assumptions about flexibility and probation."
Most UK businesses are not ready for major new employee rights, said Roy Magara, solicitor advocate and founder of Magara Law.
The Employment Rights Bill, which passed through the House of Lords and received Royal Assent at the end of 2025, will come into effect on 1st January 2027.
Magara said: “Many organisations are still operating with outdated assumptions about flexibility and probation.
“The two-year safety net for unfair dismissal will be replaced, and employers will need to justify their actions from day one.
“If it came into force today, around three-quarters of employers simply wouldn’t be ready. It represents a fundamental shift in employment risk.”
Research from FGS Global found 58% of over 500 UK businesses had little or no awareness of the changes.
The Bill will bring day-one rights to sick pay and paternity leave starting April 2026.
Magara said key sectors like retail, hospitality and logistics are not prepared.
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