Birketts launches ERA Audit tool as seven in 10 cite unfair dismissal reforms as biggest concern.
UK Top 50 law firm Birketts has launched a new Employment Rights Act (ERA) 2025 Audit, designed to help employers assess their readiness for the most significant overhaul of employment law in more than 30 years.
The launch follows Birketts’ latest survey of HR professionals and business leaders, which reveals that while awareness of the reforms is high, many organisations are still only partially prepared for the scale of change ahead.
More than four in five respondents (81%) described their organisation as only “somewhat prepared” for the ERA 2025, while fewer than one in ten (9%) consider themselves fully prepared.
The findings underline the complexity of the reforms, which introduce wide-ranging changes affecting dismissal rights, zero-hours workers, employment contracts, trade union activity and statutory entitlements.
Key areas of concern for employers
The survey highlights that the most pressing concern for employers is the introduction of unfair dismissal rights after six months’ service, combined with uncapped compensation. This was cited by 70% of respondents as their primary concern.
Other areas causing significant concern include:
- Guaranteed hours contracts and new protections for zero-hours workers (13%)
- Enhanced trade union rights and changes to industrial action rules (8%)
- Restrictions on ‘fire and rehire’ practices (5%)
- Day one rights to statutory sick pay and expanded family leave entitlements (4%)
Additionally, the research shows that employers are already anticipating the need for fundamental contractual changes. More than 83% of respondents say they will “almost certainly” revise their current probationary provisions ahead of the implementation deadline of 1 January 2027.
Supporting employers through change
Commenting on the findings, Matthew Newnham, Head of Employment and Partner at Birketts, said: “Our research shows that while most employers recognise the significance of the Employment Rights Act 2025, many are still only part of the way towards being fully prepared. The scale of change is unprecedented, and organisations are having to navigate multiple complex reforms at once – often while balancing day-to-day operational pressures.”
“What stands out in particular is the level of concern around unfair dismissal reforms. The move to full protection after six months, coupled with uncapped compensation, represents a fundamental shift in risk for employers and will require careful review of recruitment, performance management and dismissal processes.”
In response to these findings, Birketts has developed a flexible ERA 2025 Audit tool to support organisations at different stages of their compliance journey.
The tool offers three tailored options:
- a ‘DIY’ electronic self-assessment, enabling organisations to identify potential compliance gaps and prioritise planning
- a supported audit, providing additional expert insight into areas of risk
- a full audit by Birketts’ HR consultants, including tailored recommendations to address gaps and mitigate legal and financial exposure.
Where Birketts undertakes a full audit, clients receive a comprehensive action plan designed to support implementation and reduce liability risks.
Matthew Newnham added: “We developed our ERA Audit tool to give employers a clear, structured way to assess their readiness and focus their efforts where it matters most. Whether through a self-assessment or a full consultancy-led audit, the aim is to provide practical, actionable insights that help organisations stay ahead of the changes.”
“Early, proactive planning will be key. By identifying gaps now and putting in place a robust action plan, employers can not only manage legal risk but also ensure a smoother transition as the reforms take effect.”
A transformational shift for HR teams
The ERA 2025 represents a step change in employment rights, with far-reaching implications for employers’ policies, contracts and people strategies. HR teams are required not only to respond to changes already in force, but also to prepare for a pipeline of reforms still to come.
With implementation milestones approaching and enforcement risks increasing, Birketts is encouraging employers to take early, strategic action to achieve compliance with the law.
The firm’s research suggests there is a clear gap between awareness and readiness – one that could expose businesses to significant operational and legal risk if left unaddressed.
The ERA 2025 Audit tool is available now via the Birketts Employment Rights Act hub.
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