The Daily Telegraph quotes Nick Hurley on the impact of incoming reforms to the Employment Rights Act on businesses of all sizes
The UK's Employment Rights Act 2025 - which became law in December 2025 - represents a significant overhaul of employment law, introducing worker protections including guaranteed hours for zero-hours contracts, limites on "fire and rehire" practices, stronger harassment rules, and day-one paternity leave. The Act attempts to modernise workplace rights across numerous areas from unfair dismissal to union access. It is expected that most changes will be phased in throughout 2026 and 2027.
Ministers say the reforms will hand "much-needed job security to workers" and "rebalance power more fairly towards employees".
The Daily Telegraph reports, however, that some UK bosses fear the changes will "burden them and their businesses with yet more costs at a time when businesses are already reeling from tax raids".
Nick Hurley, Partner and Head of our Employment team, is interviewed in the article and explains:
We have seen more clients getting in touch recently and saying, ‘We’ve got somebody. They’ve only been with us a year or less. We want to let them go. What are the risks?'
"Some employers have been doing a little bit of pre-emptive gardening in terms of weeding out weaker-performing employees. One client even said to me that they know [the changes are] potentially far off, but it’s already starting to concentrate minds a bit more in relation to whether employees are keepers, or whether they are people they should get rid of.
Nick goes on to explain that much of the focus has been on the impact of the changes on industries like hospitality, retail and leisure. But the reforms will also make it more difficult for high earners in sectors like banking and the law to change jobs.
Employers have become a lot more circumspect and cautious about the bigger hires. The whole recruitment process around more senior people is going to tighten. That is a very foreseeable effect.
Read the full article in The Daily Telegraph here (subscription required).
