Most businesses know something is shifting in employment law. Fewer know quite how much. The Employment Rights Act 2025 is the biggest overhaul of UK employment legislation in a generation, and its changes are landing in waves across 2026 and 2027. The qualifying period for unfair dismissal is dropping from two years to six months. The cap on compensation for unfair dismissal is being removed entirely from January 2027, meaning tribunals can award based on actual loss with no upper limit. Fail to consult properly during a redundancy process and the penalty doubles to 180 days’ pay per affected employee. A new Equality (Race and Disability) Bill is also in the pipeline, bringing further obligations around pay gap reporting and equal pay.
That is not background noise. That is a direct financial risk sitting in your employment decisions right now, and it lands hardest on the businesses that are not ready for it.
The organisations that are handling this well are not necessarily the biggest or the most resourced. They are the ones with the right HR people in place. Individuals who can step in and bring a bit of clarity to what can feel like constant change.
What does that look like in practice?
It is HR leaders who can take complex legislative updates and turn them into something practical and workable across the business. Not just policies that sit in a folder, but real changes that managers understand and actually use.
It is about building a culture where people feel supported and listened to, especially when things are evolving. That connection between leadership and employees becomes even more important during periods of change.
We also see a big difference in businesses where managers are properly supported. HR is not just there to advise, it is there to give managers the confidence to lead well, handle difficult conversations, and keep teams engaged.
Then there is the commercial side. Strong HR talent does not just protect the business, it improves it. Better hiring decisions, stronger retention, and a clearer sense of direction all follow when HR is operating at the right level.
When that is in place, you can feel it across the business. Morale improves, teams work better together, and performance tends to follow.
From our side, this is exactly where we add value. At Broster Buchanan, we work closely with businesses to introduce HR professionals who can make an immediate impact, whether that is on an interim basis to steady the ship, or as a long term hire to shape the future.
These are people who do not just tick boxes. They bring a level of confidence, experience and calm that helps businesses move forward without second guessing every decision.
If HR has felt like a pressure point recently, it is usually a sign that something needs strengthening rather than stretching further.
If you are reviewing your HR structure, I have been working in recruitment for 25 years – and specialising in HR recruitment for the better part of that time – and I can give you a straightforward assessment of where you are now and what strategy you need to employ for the future.
Get the Right Help with your HR Recruitment Today
Rachel Pike
Senior Director
