Interim Management – A Workforce Model Aligned to PE Reality
December 19th 2025
Private equity ownership demands pace, flexibility and control. The New Employment Rights Act makes traditional employment models less agile and reinforces the value of interim leadership. The CCO interim practice gives you rapid access to network of proven leaders with specialist skills who work independently from the new legislation and an approach that fits PE businesses.
A summary of changes introduced by the Act include:
Unfair dismissal rights reduced from 2 years to 6 months
Removal of the previous £118,233 cap for dismissal compensation claims
Sick pay and parental leave from day one
Extended employment tribunal claim time limits
Increased procedural and documentation requirements
Greater exposure to employment-related liabilities
In response to the changes, one industry professional said “ I think organisations need an entirely new strategy to hiring”
How Interim solutions can prepare for the new Employment Rights Act
Interim managers allow PE sponsors and portfolio leaders to act decisively without creating long-term employment exposure. Engaged on commercial or LTD company contracts, interim managers are not employees and therefore sit outside many statutory employment protections.
Benefits of interim management include:
De-Risking Permanent Leadership Decisions Under the New Employment Rights Act, the cost of a mis-hire increases materially. Removing a poorly performing permanent executive will be more complex, slower and more expensive.
Interim managers provide a low-risk alternative:
Capability can be tested before committing to permanent hire
Interim-to-perm pathways can be used selectively
Leadership gaps can be filled without locking in long-term liabilities
Accelerating Value Creation Plans Interim managers are purpose-built for delivery. They are often deployed by PE firms to:
Execute 100-day plans
Lead carve-outs, integrations or restructures
Professionalise finance, operations or governance
Stabilise businesses ahead of a sale or refinancing
With immediate impact and minimal onboarding, interim leaders help ensure that value creation stays on track, even as employment regulation becomes more restrictive.
Cost Discipline and EBITDA Protection While interim day rates may appear higher on the surface, they often result in better overall economics for PE-backed businesses:
No employer pension contributions
No holiday, sick pay or family leave liabilities
No redundancy costs
Spend aligned directly to outcomes and timelines
Crucially, interim managers help protect EBITDA and cash flow at a time when employment costs and liabilities are rising.
Exit Readiness and Buyer Confidence Employment risk is an increasingly important focus in due diligence. Expanded employee rights under the new Act mean that:
Poorly documented employment decisions
Unresolved disputes
Inflexible leadership structures can negatively impact valuation and buyer confidence.
Interim managers help mitigate this by keeping leadership arrangements clean, contractual and transparent, reducing legacy risk at exit.
Are you seeking a trusted partner to support an interim management appointment?
We bring decades of executive search experience and a proven track record of success across our dedicated sectors. Our investor clients rely on us time and again to build exceptional leadership teams that drive growth and deliver results.
