Recruitment Surges for Employment Lawyers as Businesses Brace for Workers' Rights Overhaul

 
05/08/2025
5 min read

The legal sector is experiencing a hiring frenzy — but not just in any field. Employment lawyers have become some of the most sought-after legal professionals in the UK, as businesses scramble to navigate the Labour government’s ambitious reforms under the Employment Rights Bill.

Since the Bill’s introduction to Parliament in October, law firms have been actively expanding their employment practices to help clients manage the uncertainty and anticipated financial burden of the overhaul. The proposed legislation, which spans nearly 200 pages and includes 28 key reforms, has already stirred widespread concern among employers, especially in sectors that rely heavily on flexible labour like hospitality, retail, and logistics.

With the Bill now in its final stages in Parliament, legal professionals say they’ve never seen such demand for employment law expertise. According to a recent report by recruitment consultancy EJ Legal and labour market analytics firm Vacancysoft, job postings for employment lawyers rose nearly 34% in 2024, a growth rate significantly outpacing other legal practice areas.

What’s in the Employment Rights Bill?

Dubbed by some as the most comprehensive reshaping of workers’ rights in decades, the Employment Rights Bill is part of the Labour Party’s broader “New Deal for Working People” initiative. The legislation aims to strengthen employee protections, close perceived loopholes in existing law, and rebalance power in the workplace.

Among the 28 proposed changes are:

  • A ban on zero-hour contracts, aiming to eliminate the use of unpredictable work schedules without guaranteed hours;
  • A prohibition on “fire and rehire” tactics, where employers terminate contracts only to rehire staff on less favourable terms;
  • Extended employment rights from day one, eliminating qualifying periods for rights such as unfair dismissal protection and parental leave;
  • Initially included was a “right to disconnect” proposal, which has since been dropped after pushback from businesses.

While trade unions and workers' rights advocates have largely welcomed the Bill, calling it long overdue, employers are warning of unintended consequences — particularly the additional compliance costs and loss of flexibility.

A £5 Billion Price Tag — and Counting

A government-commissioned economic analysis estimates that UK businesses could face up to £5 billion annually in added costs if the Bill is passed in full. Small to mid-sized companies are expected to bear the brunt, especially in low-margin industries like hospitality, social care, and retail.

That fear is already playing out in boardrooms and HR departments nationwide. A recent poll of 31 major retailers found that most anticipate price increases and job cuts if the Employment Rights Bill becomes law.

“This isn’t just about hiring a few more HR people,” said a legal counsel at a major supermarket chain who requested anonymity. “The scope of the reforms means we’ll need continual legal advice just to stay compliant — it’s a huge shift.”

Legal Sector’s Response: Hiring Surge, Strategic Growth

As businesses brace for these changes, law firms are responding by doubling down on employment law recruitment. The EJ Legal–Vacancysoft report shows employment law roles made up nearly 8% of all legal job openings in 2024, a figure expected to climb further as reforms roll out.

“City firms are placing greater emphasis on employment law as compliance and restructuring become top-of-mind issues for their corporate clients,” said George Catt, managing director of EJ Legal. “2025 could well be an unprecedented year for employment lawyers.”

Interestingly, the surge in hiring has not been uniform across the legal industry. While firms like Mills & Reeve recorded a staggering 138% increase in employment law hires, and TLT saw a 60% rise, other firms have pulled back.

Thompsons Solicitors and Duncan Lewis Solicitors, which have traditionally focused on union-backed or legal aid work, saw declines in hiring by 50% and 33%, respectively. Analysts say this reflects the broader shift away from public-sector funded disputes toward private sector compliance and advisory work.

Compliance, Risk, and Restructuring: A New Era of Workplace Law

Employment lawyers are now playing a crucial role not just in interpreting the legislation, but in guiding corporate strategy. With so many measures still evolving — including several policy U-turns and amendments in Parliament — legal advice is no longer a luxury, but a necessity for many employers.

For example, while the “right to switch off” was ultimately dropped, its initial inclusion sent companies into planning mode, reviewing internal communications policies and after-hours work expectations. “Even now, clients are still asking us how to futureproof their practices in case the proposal is reintroduced in another form,” said a senior associate at a Magic Circle firm.

Many companies are also pre-emptively restructuring employment contracts and handbooks to reflect potential day-one rights, as failure to do so could expose them to legal claims if the law passes retroactively or with short implementation periods.

Looking Ahead: What Employers and Law Firms Expect in 2025

Although the final form of the Employment Rights Bill remains to be seen, legal experts agree that the direction of travel is clear: more rights for workers, more responsibilities for employers.

This is already reshaping the hiring strategies of both law firms and their clients. In-house legal teams are expanding, external counsel are being retained for long-term support, and training budgets for HR and management are on the rise.

“There’s a growing realisation that employment law is no longer an afterthought,” said Catt. “It’s now central to risk management, culture, and even brand reputation.”

If passed, the Employment Rights Bill could go into effect as early as mid-2025, depending on parliamentary timelines and whether implementation periods are granted. In the meantime, recruitment in the employment law space shows no signs of slowing — and the smartest businesses are already getting their legal ducks in a row.

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