At a recent Compass Carter Osborne round table, HR leaders warned that the incoming Employment Rights Bill could reshape the employer-employee dynamic across health and social care. And while the implications are wide-reaching, awareness at board level remains limited.
“I’m doing quite a lot of work just to educate our exec. This isn’t just an HR issue, it’s a cultural shift that’s going to affect behaviour, risk, and cost.”
From ‘day one’ employment rights to stronger union protections and improved access to flexible working, the bill represents the biggest shake-up in a generation. The question is whether organisations will view it as an operational hurdle or as a chance to lead.
The commercial cost of complacency
Panellists expressed concern that without proper preparation, many providers risk treating the changes as a compliance exercise. But that approach misses the bigger picture: this is about how people are treated, how decisions are made, and how culture is shaped.
“The legislation will demand a mindset shift in our leaders. It forces organisations to think differently, not just legally, but culturally.”
Done well, this could be a moment for HR to step forward as strategic advisors. By framing the new rules within the context of organisational values, workforce trends and long-term goals, CPOs can guide executive teams to respond not just lawfully, but meaningfully.
From policy to practice
The round table also explored how policy change lands on the ground. In a sector already stretched by staff shortages and rising demand, adding more obligations can feel like another layer of pressure. But several leaders argued that thoughtful, early planning is key.
That means reviewing contracts, revisiting onboarding processes, updating manager training, and crucially, building buy-in from the top down.
“Boards need to see this not as red tape, but as a chance to get ahead.”
There’s also a reputational risk in getting it wrong. As employee expectations evolve, particularly among younger generations, being out of step with fair work standards could undermine recruitment, retention and brand.
A broader opportunity for HR
Beyond the immediate legal requirements, the bill prompted a deeper conversation: is this the moment for HR to claim more space in the C-suite?
Several panellists pointed to growing examples of CPOs stepping into CEO or COO roles or being appointed to boards to lead cultural strategy. The thread connecting these moves? A recognition that people leadership is now fundamental to organisational success.
“If there are cultural issues, you need someone assessing that from the top. It’s not just about process, it’s about change.”
In brief:
The Employment Rights Bill signals a major shift in how employers will need to operate but many boards are not yet fully engaged.
HR leaders have an opportunity to guide strategic, cultural responses not just policy updates.
The changes raise broader questions about the future role of HR in shaping leadership, culture, and risk management.
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