Two-fifths of employees do not understand how the changes to parental leave introduced under the Employment Rights Act 2025 will affect them, according to research by Reward Gateway | Edenred.
Its survey of more than 2,000 UK employees also found that, of this group, 21% do not understand the changes at all.
Key changes in the Employment Rights Act 2025, implemented in April 2026, include paternity leave and unpaid parental leave becoming day-one rights, removing the previous one-year service requirement; the availability of statutory sick pay (SSP) from the first day of illness, removing the waiting period and the lower earnings limit; the reduction in the qualifying period for unfair dismissal protection from two years to six months, alongside the removal of the compensation cap for claims; and a ban on zero-hours contracts, giving workers the right to a contract that reflects their actual hours worked and compensation for cancelled shifts.
Reward Gateway | Edenred’s research also found that 41% of respondents are unclear about their new redundancy rights and protections regarding pay transparency and discrimination, and 40% do not understand the new unfair dismissal protections.
Two fifths (39%) are unaware of the strengthened flexible-working rights coming into effect in 2027, and 37% stated they are unsure of their personal standing around the fundamental shifts in holiday pay and entitlement.
Chris Britton, director of people experience at Reward Gateway | Edenred, said: “With the first major changes now taking place, the burden 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.”
