The Employment Rights Act 2025 is set to introduce some of the most significant changes to UK employment law in decades, with Royal Assent having been received last week. ‘These reforms coincide with broader market shifts highlighted recently in The Telegraph’s feature, which explores how the political and regulatory landscape is driving renewed demand for HR expertise.
🔗 https://www.telegraph.co.uk/business/2025/12/22/labour-hands-hr-big-comeback-woke-retreat/
Florence Brocklesby, Founder of Bellevue Law says, the Act will require “numerous and significant” changes to established policies, contracts and internal processes. However, she stresses that this is not a simple policy‑update exercise:
“Effective implementation will require strategic decision-making, clear communication and training. Like any significant project, this will be time-consuming and require decision-making and leadership at board level, as well as adequate HR resource for implementation.”
Why robust HR support is now critical
The Act introduces enhanced unfair dismissal rights, including uncapped compensation, a change already causing concern among employers, echoed by HR industry leaders quoted in the Telegraph article. As claims become potentially more costly, organisations must be confident that all levels of management understand and apply the new legal obligations.
Florence notes:
“Employers will need adequate HR resource to roll-out implementation of the changes required by the Employment Rights Act… ensuring line managers are trained in effective and compliant performance management.”
Should companies increase their HR investment?
Most employers will need to. Implementing the Act’s requirements will take place over the next 18 months and will require:
- strategic decision-making
- communication planning
- training for line managers
- board-level oversight
For many, this will mean expanding HR capacity, something consistent with The Telegraph’s reporting that HR professionals are already in rising demand as businesses prepare for new compliance pressures.
The need for stronger hiring and performance processes
With unfair dismissal rights kicking in after just six months, employers must ensure their recruitment processes are robust and that performance management starts immediately. Effective early-stage interventions reduce both risk and wasted resource.
This will require managers to be properly trained, including in handling difficult conversations.
Risks of insufficient HR coverage
Without sufficient HR support, employers risk:
- ineffective implementation of new policies
- poor communication and lack of understanding among staff
- increased risk of non-compliance
- greater exposure to legal claims
Growing demand for HR professionals
As highlighted both by Florence and in The Telegraph piece, the current legal reforms are driving demand for:
- senior HR leaders with change management experience
- expanded People teams in larger organisations
- fractional or consultancy HR support for SMEs
Early investment will help organisations manage the transition smoothly and protect themselves from avoidable risk. If your organisation needs support navigating these changes, the team at Bellevue Law is here to help.
