Millions of UK workers left in the dark as historic employment reforms approach

The UK is on the brink of the most significant transformation of workplace rights in decades, yet new data reveals a stark information deficit, with millions of employees unaware of their new legal protections.

As the Employment Rights Act 2025 (formerly the Employment Rights Bill) prepares for its first major wave of implementation in April 2026, Reward Gateway | Edenred’s research reveals that the very people the law is designed to protect – ranging from new parents to those facing redundancy – remain largely unaware of how the changes apply to them personally.

Billed as a “generational upgrade,” the reforms aim to end the era of insecure work. Key changes coming into force include:

• Day-one rights: Significant shifts to parental leave and sick pay. Paternity leave and unpaid parental leave will become ‘day-one’ rights, removing the previous one-year service requirement. Statutory Sick Pay (SSP) will also be available from the first day of illness, removing the “waiting period” and the lower earnings limit
• Unfair dismissal reform: The qualifying period for unfair dismissal protection is set to be slashed from two years to just six months, alongside the removal of the compensation cap for claims
• Zero-hours protections: A ban on exploitative zero-hours contracts, giving workers the right to a contract that reflects their actual hours worked and compensation for cancelled shifts

Despite the scale of these reforms, nearly 42% of employees admit they do not understand the upcoming changes to parental leave well enough to know how they are personally affected. This figure includes 21% who say they do not understand the changes at all.

The confusion extends across the entire spectrum of the new Act. 41% of workers are unclear on their new redundancy rights and protections regarding pay transparency and discrimination, and 40% do not understand the new unfair dismissal protections. 39% remain in the dark about strengthened flexible working rights, while fundamental shifts in holiday pay and entitlement leave 37% of the workforce confused about their personal standing.

Chris Britton, Director of People Experience at Reward Gateway | Edenred, commented: “With the first major changes just around the corner, the burden now falls on both the government and employers to ensure that “making work pay” isn’t just a legislative slogan, but a reality that employees understand and can navigate.

“We are looking at a fundamental shift in the relationship between employer and employee. A right that an employee does not know about is a right they cannot exercise, and employers share a responsibility to ensure their staff are both empowered and informed. Many of these changes will significantly impact the lives of employees, yet the lack of awareness could also pose issues for businesses.  These figures should serve as a wake-up call that we need a massive, nationwide effort to explain these topline changes in a way that resonates with employees across the UK.”