For many, the immediate effect appears minimal, with most reporting no changes to current hiring or business planning. But uncertainty remains, and some organisations are reviewing policies in anticipation of new requirements.

Key concerns centre on cost implications. Proposals to enhance statutory sick pay and bereavement leave could increase financial pressures, particularly for smaller firms already grappling with rising employment costs. While employers generally support fair treatment and modernisation of employment law, they stress the need for balance. Overly burdensome legislation, they warn, risks accelerating automation, reducing headcount, or pushing operations offshore.

The reforms include making flexible working a day-one right, introducing guaranteed hours for zero-hours workers, banning “fire and rehire” practices, and extending protections for family leave. While many of these measures are viewed as reasonable, some fear that greater flexibility expectations could disadvantage manufacturing businesses, where remote work is often impractical. Employers also highlight the risk of abuse of additional leave entitlements, calling for safeguards to prevent misuse.

Despite these concerns, businesses acknowledge the importance of updating employment rights and protecting vulnerable workers; but legislation should stimulate growth rather than create barriers. Several business leaders emphasise the need for a broader economic strategy focused on manufacturing and wealth creation, warning that policy decisions disconnected from real-world business challenges could undermine competitiveness.

While the proposed changes may not significantly disrupt all businesses, the cumulative effect combined with existing cost pressures could be substantial for some sectors. Employers are calling for clarity, fairness, and a balanced approach that supports both workers and the businesses that employ them.

If you need guidance on how these changes will affect your business, come along to an employment seminar hosted by Freeths Solicitors on 11th November. You will learn the latest legal developments, what they mean for your organisation, and how to prepare for the sweeping reforms ahead.

Held at the University of Wolverhampton Science Park, the cost is £15 for a Chamber member, and £25 for a non-Chamber member.

You can sign up here.