How UK Employers Are Responding to the Proposed Employment Rights Bill--and What It Means for Workforce Strategy

LONDON, Nov. 24, 2025 /PRNewswire/ -- As the UK moves closer to potentially enacting the proposed UK Employment Rights Bill, a new survey of employer sentiment, conducted by Indeed Flex, the online marketplace for flexible and temporary work, shows high awareness, rising concern and imminent shifts in workforce strategy among UK 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 how their business operates and their workforce. 

• 36% identify expanded day-one rights as the biggest risk to their operations.
• In terms of workforce adjustments, 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 their business is 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.
• 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 could drive up overheads. One respondent said "it's another cost increase for struggling businesses." Meanwhile, the prominence of day-one rights as a risk signals the caution felt by employers, as another respondent stated "day-one rights could turn out to be a nightmare if new staff immediately turn out to be unsuitable."

The anticipated increase in automation or technology investment further underline that employers view the changes as more than just a HR issue; it's business-wide, and potentially a positive one, with one respondent saying 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, 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.

About the Survey
Methodological note: The survey was conducted by Indeed Flex in November 2025. Results based on the responses of 800 UK-based employers across: Consumer Packaged Goods, Food/Beverage, Hospitality and Tourism, Manufacturing, Real Estate and Property, Retail and Wholesale, Shipping and Distribution, Transportation.

About Indeed Flex

Indeed Flex is transforming temporary staffing by empowering job seekers with control and choice over where, when, and how they work. The platform provides businesses with a reliable, high-quality workforce and an integrated Vendor Management System (VMS) that improves staffing visibility, reduces costs, increases efficiency, and boosts productivity.

Visit IndeedFlex.com for more information.

Media Contact:
indeedflex@nextpr.com 

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