Marek Zemanik

The Chartered Institute of Personnel and Development (CIPD) is calling on the UK government to work with the Scottish government to provide employers in Scotland with a plan and clear guidance to implement hundreds of new changes made to employment rights laws this week.

Employers in Scotland are already struggling to hire suitable talent, with the CIPD data revealing over a quarter of Scottish organisations (28 per cent) currently have hard-to-fill vacancies, and 50 per cent anticipate problems over the next six-months with recruiting staff.

In response, the professional body for HR and people development is calling on the UK government to prioritise creating an implementation plan and clear guidance to better support Scottish employers and reduce their likelihood of having to cut their headcount.

The new employment laws – expected to be come into effect from 2026 – include changes to unfair dismissal rules, statutory sick pay reforms and the right to guaranteed hours for those on zero hours contracts.

But the CIPD is warning that the scale and complexity of measures in the bill could compound challenges facing many employers in Scotland, following recent increases in employer National Insurance costs and the national living wage.

To help with this, the CIPD is calling on the UK government to consult meaningfully with employers in Scotland on the details of all these measures which are still to be decided through secondary legislation.

Marek Zemanik, senior public policy advisor for the UK nations at the CIPD, said: “Our research shows that the raft of changes planned to employment regulation, could stall growth in Scotland and deter employers’ hiring plans.

“The success of the bill depends on effective consultation with employers, a clear implementation plan, along with appropriate support and proper enforcement. Scottish businesses, and smaller firms in particular, must also have adequate understanding and time to prepare for the changes.

“Without this, there is a risk that new laws, which the government hopes will improve working lives, could have the unintended consequences of undermining job creation and efforts to boost labour market participation and growth.”