Act Now: New Employment Laws Incoming

Words like strategy, strategic thinking, and strategic leadership are often thrown around in boardrooms and management meetings. They sound impressive—evoking visions of forward-thinking, proactive leadership—but far too often, they lack substance when it comes to practical application.

Now, more than ever, it’s time to bridge the gap between buzzword and behaviour.

With the new Employment Law Bill making its way through Parliament, businesses across the UK are approaching a tipping point—especially in relation to the anticipated restrictions on fire and rehire practices. For too long, many employers have relied on a ‘variation of terms’ clause to implement changes such as shift patterns, location moves, or working hours. But this approach is soon to come under heavy legislative scrutiny. When the Bill becomes law, the changes it brings could significantly reduce the flexibility that employers currently have.

The Strategic Wake-Up Call

Strategic leadership isn’t about waiting for legislation to land—it’s about anticipating change, assessing risk, and making informed decisions that futureproof your business. The most strategic thing a business owner can do right now is to review operations, workforce planning, and contractual flexibility before new laws constrain their options.

Many employers have good intentions but poor timing. Making organisational changes after new regulations come into force could mean having to overcome more bureaucracy, legal risk, and potential conflict with employees. The alternative? Strategic preparation. And it needs to start now.

The Role of Strategic Leadership

Strategic leadership is the ability to see the broader picture, connect the dots, and lead your business through change—not reactively, but intentionally. It’s about balancing legal compliance with commercial necessity and making decisions that align with both your long-term goals and your duty of care as an employer.

Too often, strategy is mistaken for aspiration. It’s written into plans but not embedded into behaviour. Strategic leadership demands action—especially when external factors like government legislation threaten to narrow your choices.

A Legislative Game-Changer

The Bill introduces a new Section 104I into the Employment Rights Act 1996. It effectively bans employers from dismissing employees who refuse to accept contract changes and then rehiring them on new terms—a strategy that, until now, has been a fallback for many businesses having to overcome operational restructuring and variations of terms.

This change is not theoretical—it’s expected to come into force as early as October 2025. And with very few exceptions (e.g., provable imminent financial collapse), businesses will no longer be able to rely on contract variation clauses to enforce shift changes, location moves or pay alterations without risk of automatic unfair dismissal claims.

So, What Does Strategic Thinking Look Like in Practice?

Leaders must assess, align, and act.  Let’s strip away the jargon and get down to practicalities. Strategic thinking, in this context, means:

• Audit employment contracts now: Many employers have relied on flexibility or variation of terms clauses—allowing for shift changes, relocations, or role adjustments—but under the new Bill, these clauses may no longer be enough. At HR:4UK, we are already auditing contracts to ensure they’re robust, compliant, and futureproofed. If you haven’t reviewed your employment contracts recently—or if you’re unsure whether your variation clauses offer the protection you think they do—now is the time to act.

• Scenario planning is vital: If the law were to come in tomorrow, what parts of your workforce model would be most at risk? What changes might your business need in the next 12–18 months? Can you make those changes now while still legally permitted?

• Engaging with staff early: Transparent communication with employees about potential changes increases the chances of buy-in and reduces legal challenge. The new law places heavy emphasis on consultation. Even in cases of genuine financial need, failure to consult properly will undermine any defence an employer tries to mount.

• Working with advisors: Getting the right HR advice now could save you significant cost and conflict later.  That’s exactly what we’re here for—lean on our expertise.

• Review policies and management training: Managers must be ready to handle resistance without relying on dismissal as a backstop. Strategic leadership now includes negotiation, communication, and persuasion—not just direction and enforcement.

The Risk of Delay

Delaying contract reviews or organisational change planning could trap businesses into rigid employment terms, forcing them to carry legacy structures that no longer serve their commercial needs. Worse, you could end up in the impossible position of needing change but being legally prevented from implementing it.

Strategic Leadership in 2025 = Proactive Workforce Planning

Strategic leadership now means understanding the legislative landscape, anticipating future restrictions, and adjusting before it’s too late. Once the Employment Rights Act is in place, you won’t be able to rely on business as usual.

Final Thought:

Strategic leadership is about seeing around corners. The Employment Rights Bill is the corner—and what’s coming could severely limit the agility of your business. Act now while you still have control over the direction of travel.

Fire and rehire practices will face far greater scrutiny, and businesses that haven’t planned ahead could find themselves backed into a corner.

Our advice? Don’t wait. Start now. Review your operations. Revisit your contracts. Reassess your strategic goals considering potential restrictions. Be the business that’s ready—not the one that’s caught out.

If you need support in reviewing your employment contracts or planning your workforce strategy in light of upcoming changes, HR:4UK is here to help.

At HR:4UK, we’re already working with employers to prepare for the impact of the new Employment Rights Bill. Whether you need to review your employment contracts, update flexibility clauses, plan workforce changes, or upskill your managers in handling employee consultation—we’re here to help.

With legislation changing fast, doing nothing is no longer an option. Let HR:4UK help you stay ahead of the curve—and stay in control of your business.