Businesses falling behind on 2026 reforms and line manager confidence almost zero – HR News

Summary

New research from WorkNest shows the majority of organisations are not ready for key changes in the Employment Rights Bill due in 2026. Over three quarters have not completed an impact assessment: 53% haven’t started one, 26% have no plans to, 16% are in progress and only 5% have completed an assessment. Confidence in line managers is extremely low — just 1% of respondents say middle management is fully prepared, while 51% call managers unprepared and 31% say they are only partially ready. Harassment and third-party liability duties were flagged by 42% of respondents as the area most likely to trigger grievances or tribunal claims.

Key Points

53% of HR and business leaders have not carried out an impact assessment for the Employment Rights Bill; 26% have no plans to do so.
Only 5% of organisations have completed an impact assessment; 16% are currently conducting one.
Line manager preparedness is almost non-existent: 1% fully prepared, 51% unprepared, 31% partially ready.
Harassment and third-party liability duties are seen as the biggest risk for grievances or tribunal claims (42%).
WorkNest advises immediate action: identify organisational risks, redesign systems and policies, and invest in manager training to build a compliance roadmap.

Context and relevance

This matters because managers will need to apply new rights, policies and processes day to day — low preparedness increases operational and legal exposure. The Employment Rights Bill represents some of the most significant workplace legal changes in over a decade; organisations that delay assessments, policy updates and training risk costly disputes and reputational damage. The findings tie into broader trends of heightened employer liability and the need for proactive compliance planning ahead of statutory change.

Why should I read this?

Look — if you work in HR, run a team or own a business, this is a wake-up call. The law is changing soon, most employers haven’t even checked where they’re vulnerable, and managers aren’t ready to implement what’s required. Read this to spot the gaps fast and avoid being caught out when the reforms land.