HR teams’ top priority is to ensure that new employment rights are implemented.

According to a study by Freeths, the top priority for HR departments in the next year will be adapting to Employment Rights Bill.

As HR professionals prepare to face the vast reforms in 2025, 38% cite this as one of their five top priorities, while 33% mention compliance with HR laws.

Freeths’ survey of 2025 revealed that diversity and inclusion were less important. Only 5% of respondents ranked diversity and inclusion as one of their top five priorities in 2018, compared to a 27% ranking in 2024.

Employee engagement and retention were rated highly by respondents. 29% and 26%, respectively. Nearly a quarter (22%) of respondents ranked employee wellbeing and health as important.

According to Freeths the number of companies promoting whistleblowing increased dramatically from 28% to 37% between 2024 and 2025.

The Employment Rights Bill is a major item on many to-do lists. However, it still causes concern. Nearly two thirds (64%) of respondents are concerned with the impact of the day-one unfair dismissal right, while 49% are concerned with the right to statutory sickness pay on the first day of illness.

Many business owners are concerned about the cost of complying with legislation. 18% of businesses fear an increase in court claims. 10% are concerned about the costs associated with changing work practices.

Nearly half (45%), would support a “initial period of employment” of six months where rights would be delayed. The government is reportedly considering this.

Six out of ten businesses have not yet implemented training on reasonable steps to avoid sexual harassment despite new employee protections being in force since last October. This is being developed by a third of businesses.

The trust in artificial intelligence is down since last year. Only 46% of respondents felt they understood the legal risks of AI, particularly those related to discrimination and data privacy.

Rena Magdani is a partner at Freeths and the national head of employment. She said that research revealed “a few surprises”, especially in AI and D&I.

While businesses are facing uncertainty about new employment laws, and the challenges of the workforce, it’s good to see so many continue to focus on improving compliance and transparency.

Last week, the government published a number of Amendments for the Employment Rights Bill. The bill will be read in its third reading tomorrow and Wednesday (12 and 11 March) at the House of Commons. The bill will be sent to the House of Lords.

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