the UK's new employment law is a talent risk, not just a compliance check.

tl;dr

• The Employment Rights Act (ERA) simply validates what UK talent already expects: flexibility, mobility, and predictability.
• For employers, just complying with the new "Day One" rights isn't enough.
• The solution is to move beyond mere compliance and proactively invest in manager relationships and offer predictable flexibility.

The UK’s new Employment Rights Act (ERA) is here, focused on core changes like "Day One" rights, flexible working, and addressing exploitative contracts. It’s designed to bring legislation in line with modern expectations. But here’s the truth: the law is catching up to the trend, not setting it. Our data shows that the majority of UK employers are lagging behind in practice.

We see this not as a compliance gap, but as a significant talent risk. When you only do what is legally required, you lose the opportunity to connect with and retain the talent that’s ready to move on.

Here are the four key insights on how the ERA is intersecting with the reality of the modern workforce.

flexibility is a "day one" dealbreaker.

The ERA strengthens the right to request flexible working from day one. Talent isn't waiting for the law to catch up; they’re already treating flexibility as a non-negotiable right.

the insight.

This trend is already costing you talent. An overwhelming 43% of UK talent wouldn’t even consider accepting a new job without work location flexibility. The demand for flexible hours is nearly identical at 44%. In short: if you’re not offering it, you're not in the conversation.

the risk.

There is a dangerous disconnect right now: 81% of employers still don't allow talent to set their own schedules. As the Act makes it harder to deny flexibility, employers relying on rigid, traditional models will face a wave of statutory requests they are completely unprepared to handle culturally.

action for employers.

Don't wait for a statutory request. Proactively offer schedule autonomy and location flexibility in your job descriptions. Speak clearly and confidently about how you empower your people, and you will attract the 44% of talent who actively filter roles based on this criteria.

"day one rights" will accelerate the "portfolio career."

The Act's removal of the two-year qualifying period for unfair dismissal de-risks the decision to leave a secure job. It removes a major barrier to job mobility: fear.

the insight.

Right now, job security concerns are keeping some talent in place (34% are worried their job will disappear). However, simultaneously, 33% of UK talent actively desire a "portfolio career," where they switch sectors and roles frequently.

the connection.

"Day One Rights" effectively de-risk the decision to leave. The legislative change subsidises the "portfolio career" ambition, liberating "trapped talent" who were staying put simply to "earn" security.

the risk.

Retention will become significantly harder if you’ve relied on that two-year hurdle. The 34% of talent who felt "stuck" due to security concerns may suddenly feel safe enough to explore new opportunities.

action for employers. 

You need to re-recruit your existing workforce. You must rely on the relationships they have built: 76% of UK talent have a strong relationship with their manager. This is your stability anchor and your primary retention tool. Invest in this relationship.

the "right to predictability" vs. the "side hustle" reality.

The Act aims to end exploitative zero-hours contracts by offering guaranteed hours. While that offers necessary security, we see a crucial nuance: many workers want the flexibility to maintain a second job.

the insight.

The Act assumes talent wants one secure job. The reality is that 33% of UK talent have already taken on or are actively looking for a second job to help navigate the rising cost of living.

the conflict.

Guaranteed hours offer security, but that security must not come at the cost of the flexibility required to maintain a side hustle.

the opportunity.

Talent is turning to second incomes to survive this economic moment. Employers who offer "predictable flexibility"—rosters set far in advance that allow talent to confidently plan for a second income—will win over the one-third of the workforce currently juggling multiple roles.

managers are the "ERA implementation engine."

The Act introduces complex compliance requirements—from managing "Day One" flexible requests to navigating new fair dismissal procedures.

the insight.

Managers are the only stability anchor left. While trust in leadership has dipped, 76% of UK talent have a strong relationship with their manager—a percentage higher than the global average. They are the guide and the friend in the volatile environment, with 60% of talent already seeking reassurance from them.

the risk.

If you burden managers with the administrative weight of the ERA without proper training, you risk breaking the strongest link you have.

action for employers.

Invest in training managers on the intent of the Act (fairness and flexibility) rather than just the process. They are the ones who will have to explain to the 52% of sceptical talent why a request was denied or how the company’s vision aligns with their career path. Empower them to be the trusted partner talent needs.