Marvin OnumonuUK organisations risk a spike in tribunal claims as HR teams are not fully ready for the Employment Rights Bill, research from Empowering People Group found.
Only 17% of HR leaders in companies with more than 500 staff had completed an impact assessment and drawn up an action plan.
Another 17% either had not started or did not know if any work had begun.
Many are still at early stages, with 36% in initial talks or doing basic research, and 27% midway through a formal assessment.
This leaves little time to get ready for new duties expected to start as soon as the Bill receives Royal Assent.
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.”
While HR leaders reported they understood the Bill, 19% said their teams were not well aware of its potential impact.
Nearly half (45%) of HR leaders said their teams were overstretched or facing burnout as a main concern linked to the Bill.
Employee-relations (ER) transformation was called a medium to very high priority by 95% of HR leaders, but only 34% said their organisation was making a significant investment.
Half said investment was only moderate, raising questions on whether HR teams have the capacity for the changes ahead.
71% of organisations reported more ER cases in the past year.
Main reasons were workload and workplace stress (38%) and employees being more willing to speak up (32%).
Nearly half (46%) said artificial intelligence (AI) was helping employees raise grievances in a more robust, legally-structured way.
Fowler added: “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.”
He said: “Without this decisive investment in digital ER infrastructure, updated processes and stronger capability, the significant change to come will outpace their ability to respond.”
