Employment law in the UK remains in flux, and the ripple effect is being felt across both sides of the profession. As the Government’s Employment Rights Bill continues its passage through Parliament and workplace expectations evolve, law firms are experiencing change in two distinct ways: through the growing demands on their employment law teams and as employers themselves, needing to adapt policies, culture, and compliance.

For firms and employment lawyers alike, this moment is shaping the next chapter in workplace practice, talent attraction, and opportunity.

The Employment Rights Bill: Workload, Opportunity, and Preparation

The Employment Rights Bill is now in its final stages of passage through Parliament. Following multiple defeats in the House of Lords, it remains in the Commons–Lords “ping pong” process at the time of writing.

While the final version of the reforms is still being negotiated, its arrival into law remains expected in late 2025 or early 2026, with most provisions phased through 2026 and 2027.

Newly added to the Bill is the proposal for a Fair Work Agency (FWA), which would oversee compliance and enforcement of workplace standards, signalling a stronger regulatory framework for both employers and advisers.

For employment law teams, this evolving framework is already driving demand from clients seeking to understand and prepare for the forthcoming changes. Firms are increasingly reviewing contracts, working-time policies, and HR procedures in anticipation of reform. For specialist employment lawyers, this is creating greater demand for advisory expertise, tribunal experience, and policy drafting skills.

At the same time, law firms face many of the same challenges as their clients. As employers, they too will need to assess their own compliance, flexible-working practices, and workforce policies to ensure alignment with the new standards once enacted. In that sense, firms are both advisors and participants in this period of reform – and those already preparing are likely to gain a strategic advantage once the legislation takes effect.

The Latest Developments and What They Signal

Peers in the House of Lords have continued to push back on key government amendments, including those relating to guaranteed hours for zero-hours workers, the proposed day-one right to unfair dismissal, and trade-union ballot thresholds. (HR Review)

These defeats have prolonged the Bill’s journey through Parliament, with a final version still to be agreed. Business groups are calling for greater clarity, while ministers have confirmed that they do not intend to dilute the core protections within the Bill. (The Times)

For law firms and employment teams, the result is a period of heightened uncertainty around final implementatihttps://www.thetimes.com/uk/politics/article/employment-rights-bill-labour-x2sdm7hpb?utm_source=chatgpt.comon dates and specific provisions, particularly regarding dismissal rights and union thresholds. Policy and process planning must therefore remain flexible, with templates and advisory documents ready to be amended quickly once the final wording is confirmed.

The introduction of the Fair Work Agency also brings a new enforcement landscape, increasing the potential for regulatory oversight alongside tribunal actions. Against this backdrop, workload planning is becoming more complex as teams juggle client advisory work with their own internal readiness and compliance.

Managing Expectations: The Cultural Shift Inside Firms

The pace of reform mirrors the shift in workforce expectations. Across the profession, employees increasingly value transparency, inclusion, and flexibility, not just in client workplaces but within their own firms.

Hybrid working has matured into a long-term fixture, but questions remain about fairness and consistency. Employment partners are helping clients navigate these issues while HR leaders inside firms manage the same challenges themselves.

With the Employment Tribunal Service still facing significant backlog pressures, and claims linked to discrimination, harassment, and hybrid-working disputes on the rise, employment teams continue to see strong demand for both contentious and advisory work.

This creates more opportunity for growth, but also more competition for experienced lawyers who can combine technical expertise with empathy and commercial understanding.

What It Means for Hiring

At Clayton Legal, we continue to see clear trends shaping the employment law market. And, simply put demand is highest for lawyers who:

• Can interpret complex legislation clearly and advise diverse client bases
• Have a balanced mix of contentious and non-contentious experience
• Understand both the legal framework and the organisational psychology of workplace change

For those working within employment law, these changes underline just how integral this practice area has become to firm strategy. Employment teams are expanding, diversifying, and increasingly sitting at the heart of board-level conversations about people, culture, and risk. For lawyers specialising in this area, it is an opportunity to deepen expertise, move into more strategic roles, or explore firms whose values align more closely with their own.

The competition for employment law specialists remains strong, with mid- to senior-level roles among the most sought after across the sector. Firms are also reviewing how they present themselves as employers, ensuring their own workplace practices align with the values they promote externally.

Firms able to demonstrate genuine flexibility, progressive culture, and strong internal engagement are best placed to attract and retain leading talent in this climate.

Preparing for 2026: Strategy and Stability

While most reforms are not expected to take full effect until 2026 and into 2027, firms that prepare now, both for clients and for their own workforce, will be best positioned.

Practical steps include:

1. Reviewing client-advisory materials to ensure readiness for the new rights framework
2. Auditing internal policies for compliance with forthcoming obligations
3. Training partners and associates on the implications of the Fair Work Agency and extended tribunal time limits
4. Partnering with a specialist recruiter to secure senior expertise and nurture junior talent in advance of increased market demand

The next phase of employment law reform will redefine how employers operate and how legal teams structure, advise, and grow.

Looking Ahead

For employment lawyers, this remains a period of real momentum and opportunity, with new areas of expertise emerging and team structures evolving to meet client and regulatory demand. Many firms are expanding their employment practices, creating opportunities for lawyers who want to take on more strategic or advisory work in a rapidly developing area of law.

For law firms, it is a reminder that people strategies and client strategies are now deeply connected. The firms that thrive will be those that invest in their people, build balanced teams, and foster cultures that reflect the fairness and flexibility they help clients to achieve.

At Clayton Legal, we work with employment law professionals and firms across the UK to help them navigate this evolving landscape. Whether you are building your team or exploring your next career move, our specialist consultants can help you make the right connections for the future.

About Clayton Legal

Clayton Legal has been partnering with law firms across the country since 1999 and during that time has built up an enviable reputation for trust and reliability. We have made over 5,000 placements from partners to legal executives, solicitors to paralegals, and legal IT personnel to practice managers.

If you are looking for your next career move, we can help.

Across the UK’s legal landscape, risk and compliance have quietly moved from the back office to the boardroom. What was once a procedural necessity has become a defining part of how firms operate, compete, and build trust.

As we look ahead to 2026, compliance is no longer just about staying on the right side of regulation. It is about foresight, culture, and resilience, and for those working in this space, it is creating a wealth of new opportunities.

At Clayton Legal, we have seen this shift first-hand. The appetite for skilled risk and compliance professionals continues to grow, and the expectations placed on them have evolved just as quickly.

A Changing Landscape

This year has been one of the most transformative yet. Regulatory focus has widened, with new expectations emerging around AI accountability, ESG reporting, and corporate transparency. According to the UK Government’s Regulatory Initiatives Grid (November 2025), these priorities will remain central as regulators adapt to technological change and public demand for ethical governance.

In practice, that means compliance professionals are no longer the final checkpoint. They are working alongside boards and senior leadership teams to shape business strategy, manage emerging risks, and strengthen reputation.

Technology sits at the heart of this evolution. Automation, RegTech, and data analytics have made it possible to identify issues faster than ever, but they have also raised expectations. The modern compliance professional now needs to understand not only the law but also the systems and data driving it.

Skills for the Modern Compliance Professional

As compliance becomes more integrated across functions, the skills needed are shifting too. Employers are looking for people who combine legal knowledge with commercial understanding, digital literacy, and strong communication.

In 2025, there has been a sharp rise in hybrid roles that bridge compliance, ESG, and operational risk. Professionals who can interpret AI-related regulation, manage sustainability reporting, or understand data-governance frameworks are in particularly high demand.

A Financial Times analysis (June 2025) reported that business risks are pushing legal and compliance leaders to centre stage, with boards spending more time on risk, data, and culture than ever. It is a trend that is likely to accelerate through 2026 as firms formalise cross-functional teams and invest in leadership capability.

For those building their careers in this space, that means more variety and mobility. A background in finance, technology, or analytics is now just as valuable as a traditional legal foundation, and continuous learning has become a must.

Firm Strategy and Internal Evolution

While demand from clients continues to grow, the most forward-thinking firms are also looking inward. Risk and compliance are now viewed as integral to strategic planning, culture, and operational performance.

Research from the Financial Times (24 June 2025) highlights how compliance leaders are being brought into board-level discussions across professional services, reflecting a cultural shift toward accountability and resilience. The FCA’s Regulatory Initiatives Grid (2025) also reinforces the growing expectation that firms establish robust governance and conduct frameworks.

In many firms, new senior leadership roles have been created to oversee compliance strategy, data governance, and ESG oversight. This evolution gives professionals greater visibility and influence, as well as the opportunity to shape how the legal sector responds to both regulatory change and client expectations.

Cyber-Resilience Front and Centre

Cybersecurity and data protection remain two of the most pressing challenges of the moment. The Information Commissioner’s Office Annual Report 2025 recorded a further rise in reported data-breach incidents, with a growing proportion linked to human error and third-party systems. Firms are responding by strengthening their digital-risk frameworks and embedding cyber-governance expertise within compliance teams.

Professionals who can bridge legal knowledge with a practical understanding of information security and data governance are in high demand. These hybrid skills allow compliance specialists to turn regulation into prevention, helping firms not only respond to risk but anticipate it.

Talent Trends and Career Pathways

Despite sustained demand, the supply of experienced compliance professionals remains limited. The Skillcast Top 10 Compliance Challenges for 2025 report found that two-thirds of UK organisations are struggling to recruit suitably qualified staff, particularly in ESG, RegTech, and cyber-risk roles.

To address this, many firms are investing in reskilling programmes and broadening their search criteria, hiring from adjacent industries such as finance, IT, and analytics. For candidates, this is creating a buoyant market with a wider range of entry points and opportunities for progression.

What is also clear is that professionals want purpose. The strongest attraction factors are now flexibility, ethical leadership, and meaningful impact, rather than just salary or title.

Continuous Development and the Road to 2026

Keeping up with change has become part of the role. Firms are increasingly offering micro-learning and modular professional-development programmes, focusing on emerging themes such as AI ethics, climate disclosure, and conduct risk.

The Chartered Institute for Securities & Investment (CISI) Learning Trends Report 2025 highlights a sharp increase in cross-disciplinary qualifications that blend law, data analytics, and sustainability. This focus on continuous learning is creating a new generation of compliance leaders who can navigate law, technology, and culture with equal confidence.

Collaboration across departments is now one of the defining capabilities for anyone building a sustainable career in this field.

Looking Ahead

As we move into 2026, one thing is certain: risk and compliance will remain at the heart of the legal profession. The coming year will bring closer alignment between governance, ESG, and compliance functions, greater adoption of RegTech tools, and an even stronger focus on transparency and trust.

For professionals in this space, it is an exciting moment to redefine what a compliance career can look like. The work is more strategic, more visible, and more connected to business purpose than ever before.

At Clayton Legal, we continue to work closely with law firms and professionals navigating this evolving market, helping clients to build resilient, forward-thinking teams and supporting candidates ready to take their next step in a profession that is shaping

the future of law itself.

About Clayton Legal

Clayton Legal has been partnering with law firms across the country since 1999 and during that time has built up an enviable reputation for trust and reliability. We have made over 5,000 placements from partners to legal executives, solicitors to paralegals, and legal IT personnel to practice managers.

If you are looking for your next career move, we can help.

After 2017’s climate of uncertainty, largely triggered by Brexit, UK law firms are understandably cautious going forward. However, on the whole, they are demonstrating their robustness by expressing a desire to continue with business as usual. In fact, our latest white paper, The Challenges and Opportunities Facing Legal firms in 2018, reveals that a significant majority (66%) of firms are looking to increase their headcount over the coming year. Of those businesses, 4% expect to increase staffing by 5% and 11% predict that it could be by as much as 30%. So, clearly there is considerable optimism about the opportunities for headcount growth in the coming year.

However, there appears to be challenges ahead surrounding the availability of labour. Around two-thirds (67%) of those surveyed say a skills shortage is their top concern for 2018 and 20% cited staff retention. And with business lobby group British Chambers of Commerce saying that skills shortages reached ‘critical levels’ in the last quarter of 2017, it is now vital for firms to retain the talent that they already have. So, which retention strategies can be used to incentivise existing staff to stay?

Flexible hours

The most important thing is to consider what your staff value the most. New research from HSBC reveals that 89% of employees view flexible working as a key motivator – more than the 77% who were influenced by financial incentives. Yet our survey found that only 33% of respondent firms offered flexible hours and fewer still provided part-time options. While it is encouraging to see that practices are increasingly aware of the demand for adaptable working patterns, those that don’t offer them to staff – and at all levels of seniority – risk losing them to businesses that do.

Remote working

Our survey revealed that 22% of firms offer staff the opportunity to work outside of the office. And, in a profession where long hours are the norm, there’s no doubt that many employees would welcome the opportunity to dispense with their commute on occasion. Does your firm make use of the technology available that facilitates this, such as cloud storage?

Training and development

In its recent Human Capital Trends report, Deloitte found 51% of companies rated ‘investing in talent’ as an urgent priority. Consequently, it is a surprise that none of our survey respondents cited training and development as a key retention offering at their firm. Millennials, in particular, will be hard to attract without excellent training and development programmes: a recent report by PwC found that 74% of the millennials it surveyed said that learning new skills to remain employable was something that they valued highly. And, over a quarter said this was the most important factor in making an organisation an attractive employer. Given that this generation will make up three-quarters of the UK workforce by 2025, firms cannot afford to overlook their needs: doing so will mean that they could fail to engage with a large share of skilled talent over the coming years.

Bonuses, sabbaticals and other offerings

Of course, while our research shows that flexible hours, remote working and training opportunities are important ways to invest in and retain staff, they aren’t an exhaustive list. Other benefits such as bonuses, sabbaticals, employee discounts, paid volunteering leave and a holiday allowance that increases over time, are just some of the other ways to incentivise staff. The best way to find out what your staff would value is to simply ask.

Not only are these methods excellent ways to keep staff engaged, they will also make your firm more attractive to potential recruits. At a time of significant skills shortages, are you doing all that you can, to attract and retain?

To request a full FREE copy of the report, click here.

​Furthermore, to speak to the team about your recruiting needs, call 01772 259 121

Just landed yourself a new job? Congratulations!  Your effort applying and interviewing has certainly paid off, however the hard work shouldn’t stop there. Now is the time to ensure you are not only fully prepared for the role, but also that your first few weeks are a success and demonstrate you are the right hire. So what can you do to ensure your first few weeks are a glowing success? Here are our top tips.

Build relationships before you begin

If you have a break between leaving your new job and starting the next, it might be all too tempting to put your feet up and relax. And while it is important to be well rested and mentally prepared, make the time to create the foundations for strong professional relationships. Write a personal thank you to your interviewer, or hiring manager, and take time to find out what you can about your new line manager and colleagues. It is also advisable to ask if there is anything you can do to prepare – is there any reading you should be doing or research about the firm and clients you will be working in? All this will position you as an individual that is serious about their career and passionate about making a good first impression.

Review your induction schedule

It’s likely that you will have received an induction booklet or handbook prior to your start date, make sure to set plenty of time aside to read them both thoroughly.  Pay particular attention to the dress code and give yourself plenty of time to source appropriate items. And if you haven’t been issued with a schedule or policy booklet, requesting one will certainly set a good impression with the employer. And remember, if you have secured your role via a recruitment consultancy, they will also be able to assist you with liaising with your future employer so make use of your contacts there.

The first few weeks

Regardless of how busy you might be in your first few days and weeks, it is vital that you take the time to introduce yourself to your colleagues.  After all, establishing the grounds for strong professional relationships not only creates a more enjoyable work environment, but it can also help you get to know the structure and culture of the business.

It is also advisable to schedule some time at the end of your first week to sit down with your line manager to discuss how you are finding the role. This will also offer the chance to get some initial feedback, and discuss anything you are finding challenging or would like more information about.

Professional development

The end of your first week also offers a great time for you to set yourself a 90 day goal which should include where you want to be and what skills you want to develop and acquire.  Once you have this in place, regularly review it to assess how you are progressing. And ensure that you make the time to review your skill sets and discuss opportunities to develop these – whether this is via internal or external training opportunities – with your firm.

Take a look at some our other blogs to gain some more valuable career advice.

Or take a look at our current roles to find your next game-changing role.

You’ve probably heard all about artificial intelligence and its growing use in a number of widespread industries. And if you haven’t observed its use in a business context then you will surely have seen it in films like ‘iRobot’, ‘Ex Machina’ and, well…‘AI’. But the idea that businesses could harness the potential of artificial intelligence in a legal setting and use it to their firms’ advantage was surely only a distant dream?

Wrong.

Legal firms have increasingly adopted artificial intelligence led programmes for a few years now, indeed we wrote an article for Totally Legal on that very subject only last year. However, until recently this advanced technology was the sole preserve of firms with vast resources – and deep pockets – but that all appears to be about to change.

AI priority for legal firms

According to recent, extensive analysis conducted by our team here at Clayton Legal, small and medium sized legal firms both recognise the importance of the use of AI, regard it as an opportunity to be embraced and do not feel threatened by its impact on their business.

As one of the respondents to our research project, Andrew Kwan – solicitor advocate at Clear Law – put it, “This approach allows us some advantages including being agile within a changing legal market. Therefore I can see the utilisation of AI as being an opportunity to deliver greater value to clients, both individuals and businesses, by removing some of the administrative elements of the process.”

And it’s not only senior professionals who are experiencing this optimism. Miriam Khan – a junior colleague of Khan at Clear Law, made the point that AI and human skill sets should complement each other rather than take opposing sides, “The profound purpose of AI is to save the need for time, cost and energy on manual labour and increase efficiency. Why do a job that a computer can do for you?”

Opportunity for skills development

Our own managing director, Lynn Sedgwick, also commented on the increased adoption of AI by small and medium sized firms. “While firms such as Linklaters and Clifford Chance have moved to use AI in several different areas, this is very much about driving efficiencies, rather than eradicating jobs. AI is becoming a priority for legal firms and the smaller practices that we spoke to are also hoping to generate higher fees and ensure that processes can be and will be outsourced to machines.”

“For employers, this has huge benefits but it also offers their people more interesting work, making the workplace a more satisfying place to be in, in a marketplace where retention is key.  For legal professionals at all levels, the introduction of AI represents an opportunity to develop new skills, and for those who are open to change, to increase their value in the marketplace. The interpersonal and technological skills required to adapt to the new AI infused working environment are likely to bring benefits to all that choose to engage with them.”

“The human element can’t, at least yet, be replaced by a robot. Andrew Kwan really sums it up when he says: ‘I do not see AI removing the elements where you are a compassionate human. You can’t remove this from a process and expect a great result for your client.”

We would love to hear you views on the role that AI has to play at small and medium sized firms – do you agree with Lynn that the introduction of AI represents an opportunity to develop new skills and increase individuals’ value in their marketplace? Or do you believe that AI could ultimately lead to jobs being cut?

For more legal insight check out our website

Or to see some of our other insights take a look at our blog

As we all know, the billable hour has been the de-facto payment structure adopted across the legal sector. In fact, according to Sean Braswell, a leading legal journalist, the practice dates back to 1975 and the American case of Goldfarb vs Virginia State where it was discovered that the prior ‘minimum fee’ structure was outdated and favoured richer clients. However, it appears as if this trend – and the idea of the billable hour as a whole – could be coming to end. But what does this mean for legal professionals and the firms they work for?

RIP billable hour

The trend of moving away from the billable hour gained momentum during the financial crisis when consumers started to look for more cost effective external legal guidance and began identifying alternative fee arrangements (AFA). These came in various forms including flat fees, request for proposals (RFPs) and reverse auctions over the once universally accepted hourly fee structure.

Why did this happen?

The financial crisis – rather obviously – put extra pressure on both individuals and organisations which started putting more of a focus on their legal costs and how to reduce them, improve efficiency and value for money so clients essentially get a fairer deal from their legal partner.

However, it looks like this renewed focus has in fact had a negative impact and led to a decline in output. Firms’ productivity has traditionally been measured on billable hours per lawyer, which presents leaders with a challenging situation as remuneration and bonuses have also traditionally been calculated by total number of hours billed.

A report from Thomson Reuters has also highlighted how billable hours have dropped in the last 10 years and gone from an average of 134 per lawyer in 2007 to 122 in 2016. That may not seem like a huge fall, but this monthly reduction – extrapolated over a full year – equates to a loss of 144 billable hours per lawyer per year, which ‘costs’ firms around £53,000 annually.

It would be unfair to suggest that this is solely down to a shift towards AFAs in recent years, however legal firms have a challenge on their hands bringing productivity up to its previous level. And legal professionals will also need to be prepared for change.

New skills

It’s likely that, as a result of this changing market, negotiation will become an increasingly sought after and important trait as firms seek those who have the ability to agree upon and adopt more flexible fee structures that are embraced by legal consumers. Professionals will also have to change the way they document the work they’ve done for clients. And let’s not forget communication, which will be absolutely pivotal as clients cast a more discerning eye on their legal partners. Perhaps most importantly, lawyers will also need to find ways to demonstrate how they can show value to the business beyond the numbers of hours they can bill for.

Do you think the age of the billable hour is coming to an end?

For more legal insight check out our website

Or to see some of our other insights take a look at our blog