Improving access to flexible working is expected to be the biggest challenge for UK employers as they prepare to implement the wide-ranging reforms set out in the Employment Rights Bill, according to a new survey by HR and payroll software provider Ciphr.

The legislation, which aims to overhaul workers’ rights across sectors, is set to impact every employer in some way. While many of the reforms remain under consultation, HR and payroll professionals will be central to managing the complex operational changes required to stay compliant.

Ciphr surveyed 300 UK HR decision-makers about which proposed policies present the greatest challenges in terms of time, cost, and resource. Topping the list was the requirement to expand flexible working access, with 22% citing it as the most difficult reform to implement.

Currently, all employees have the right to request flexible working, but under the new bill, this is set to become the default where practical. Employers will be required to properly consider requests, consult with employees before decisions are made, and only refuse on clearly stated “reasonable” grounds.

The findings suggest organisations where on-site presence is central such as in retail, hospitality, engineering, and logistics will face the steepest learning curve. Around 35% of retail HR professionals, 33% in hospitality and tourism, 29% in engineering and manufacturing, and 25% in logistics identified flexible working reform as their most pressing concern.

Other key challenges cited included:

Improved legal protections for workers involved in industrial action (21%)
Publishing Equality Action Plans (including menopause action plans) (17%)
Extension of tribunal claim time limits from 3 to 6 months (17%)
SSP reform and day-one paternity leave rights (16%)
Requirement to offer guaranteed hours to zero and low-hours workers (16%)

For large employers (250+ staff), the publishing of Equality Action Plans emerged as the biggest anticipated challenge (22%). Meanwhile, among the UK’s largest firms (1,500+ employees), statutory sick pay changes (27%) and third-party harassment liability (23%) drew the most concern. In contrast, smaller employers (10-49 staff) were more apprehensive about statutory probation periods and protections for pregnant workers.

Claire Hawes, Chief People and Operations Officer at Ciphr, said, “I’m encouraged but also a little surprised to see that expanding the remit of flexible working still tops the list of challenges for organisations. After years of hybrid working, and the proven business benefits of supporting good work/life balance for employees, you might expect employers to feel more confident. But the data tells us the difficulty now lies less in writing the policy and more in embedding fair and transparent decision-making, especially in sectors where presence on-site is the norm.”

She added that while the administrative burden may be heavy, the long-term business value of inclusive, people-focused reforms should not be underestimated. “Whether it’s managing multiple flexible-working requests, meeting new consultation steps, or publishing Equality Action Plans, HR will be at the forefront and in the firing line. Done well, these changes could help employers broaden talent pools, boost retention, and create more trusting workplaces.”

Hawes recommends organisations begin their preparation now by auditing policies, aligning leadership expectations, upskilling managers, and investing in integrated HR and payroll systems to automate compliance.

Want to go deeper? Join our upcoming Reward Strategy Insight Series on the Future of Reward to explore how payroll, reward, and HR professionals can navigate the Employment Rights Bill and other key policy changes. Register your interest here.