As we move into 2026, many organisations are beginning the year facing a materially different employment landscape.
A recent Telegraph article, “It’s just not right’: Businesses brace for Labour’s worker revolution”, highlights growing concern among employers following the introduction of the Employment Rights Act. This is not resistance to fair treatment of workers, but the operational response required. Business leaders are rightly concerned about the cost implications of changes such as day-one sick pay and the broader impact of extending probation periods, expanding HR teams, and investing in additional management training, all in order to manage risk, cost, and compliance.
This theme was echoed in a recent CityHR webinar, where Nick Hurley, Partner at Charles Russell Speechleys described a “blizzard” of regulation and the knock-on effects that HR leaders and businesses may have to contend with:
- Potentially messier C-suite exits following the abolition of the compensation cap for unfair dismissal claims
- A possible reduction in early-stage share awards for senior hires, driven by increased downside risk
- A more fluid talent market if non-competes are restricted to three months or banned altogether
- Increased regulatory focus on DE&I, further embedding it into culture, governance, and leadership agendas
From our perspective at Oakleaf Partnership, we see this underpinned by three realities:
- Employment reform will not land evenly across sectors
- HR, Reward, and Employment Law capability is becoming business-critical, not administrative
- Workforce strategy, cost modelling, and policy design will need to move faster and with greater precision
As organisations adapt, the conversation must move beyond ideology and into execution: how businesses remain competitive, compliant, and fair in an increasingly complex regulatory environment.
The question now is not whether change is coming, but how well prepared employers are to absorb it.
For a further discussion or to explore the very active talent market for HR specialists able to help with this preparation, please contact Sarah Alexander
