Employers say they’re ready for the Employment Rights Act, but improving rotas will be key to compliance

Ahead of the next wave of regulation coming into force under the Employment Rights Act 2025 (ERA), new research from AI workforce management platform, Quinyx shows a clear disconnect between business confidence and compliance reality.

Nearly eight in ten (79 percent) businesses employing shift workers say they are prepared for the ERA’s new rules on shift work, with almost the same number (80 percent) saying they are confident their rotas are fully compliant. Yet just over half (51 percent) of employers admit they currently struggle with the complexity of compliance in their rotas, and not even a third (31 percent) say they are fully prepared for the forthcoming shift-work requirements.

The new rules are expected to come into force throughout 2027, and will give workers on zero and low-hours contracts:

●      the right to be offered guaranteed hours that reflect the hours they already regularly work

●      reasonable notice of shifts

●      payment when a shift is cancelled, moved or cut short at short notice.

Being able to meet these requirements of the ERA will rest upon precise record keeping: the tracking of each zero- and low-hours worker’s shifts, and a clear record of when shifts are offered, changed or cancelled, putting the rota at the centre of compliance. However, how rotas are currently created and shared in businesses further highlights the confidence versus preparedness gap.

According to employers surveyed, two in five (40 percent) still create rotas in Excel or similar software, and more than one in five (22 percent) use pen and paper. Only a quarter (25 percent) use AI to create rotas aligned with regulation. Nearly two in five (39 percent) print rotas and pin them up in staff areas, 28 percent send them by WhatsApp or text and 21 percent pass them on verbally.

Encouragingly, employers are aware of the challenges they face and the fixes that are required to overcome them. Two in five (40 percent) say they’ll need to upgrade their workforce management technology, and 38 percent expect to give managers better training.

Nonetheless, employers remain concerned about the potential of the new legislation to hit their bottom-line. Over a third (34 percent) expect that the ERA will cause staff costs to increase, and 23 percent will have to reduce the number of employees – putting further strain on the workforce that remains.

Ned Gammell, Head of UK&I at Quinyx, said: “Frontline businesses are operating under increasing pressure. Costs are rising and the ERA will add a new layer of complexity to every rota written.

Getting rotas wrong will have far-reaching implications, from a dissatisfied workforce to a compliance breach. While many businesses feel ready, you can’t reliably track hours worked and shift notice given on a spreadsheet, a noticeboard, or a WhatsApp group.

“Businesses that give their managers the right tools and training, and build compliance into how rotas are planned and shared from the start, will keep greater control of costs and give workers the stability and predictability the new rules are designed to deliver.”

While a compliance matter for businesses, the legislation also has far reaching benefits for shift workers. Over half (57 percent) of UK shift workers surveyed are aware of the Employment Rights Act and 42 percent expect better mental health, and 37 percent expect a better social and family life as a result of the new rules.