Fifty-five per cent of payroll professionals feel more exposed to personal or organisational risk as the Employment Rights Act 2025 comes into force, a report found.
Three-quarters were confident their systems could flag new requirements such as day-one entitlements correctly, but 55% still felt more exposed thanks to stronger enforcement measures that have been introduced, according to payroll and HR software company MHR.
The Fair Work Agency is now responsible for investigating non-compliance with legislation, including underpayment of wages.
MHR’s survey also revealed that AI is transforming the sector, as 91% of payroll managers and senior leaders said their organisation is using AI, but this is kept to limited or moderate use, with only 10% using it extensively.
Manual processes are still being relied on, with 56% of payroll managers and senior leaders using spreadsheets for processing and 49% manually input data. MHR suggests that this could be contributing to mistakes being made across payroll, as 87% admitted to making mistakes that resulted in employees not being paid correctly or on time in the last 12 months.
Nearly four in 10 of UK payroll teams (39%) admitted their organisation has found it difficult to implement changes from the ERA and 59% said there has been a lot of manual work involved in shifting to guaranteed hours contracts. Just under two-thirds (63%) of payroll professionals said their organisation received the right support from the government to...
To display this content from YouTube, you must enable advertisement tracking and audience measurement. 2 min As young people take to the streets across Europe to protest poor school conditions and...