A survey of 1,050 senior decision-makers found 27% of employers rank day-one paternity leave among the hardest Employment Rights Act changes to implement, second only to statutory sick pay at 30%.
The paternity leave shift took effect on 6 April, removing the previous 26-week service requirement and forcing employers to rework policies, payroll systems and manager guidance built around that threshold.
SMEs face the sharpest pressure: consultants said day-one paternity leave can create immediate staffing gaps, while SSP from the first day of illness has brought an unbudgeted payroll hit and left some small firms non-compliant.
Another 23% of employers flagged new unfair-dismissal protections due in January 2027 as a top challenge, while 12% cited stronger protections for pregnant workers and those returning from maternity leave.
Acas and employment lawyers urged businesses to audit contracts, remove outdated qualifying periods and ensure managers apply the new rules correctly to avoid disputes and unlawful refusals.