Navigating the unknown: how employee relations leaders can prepare for the future of employment law in financial services
As the financial services sector braces for a wave of legislative change, HR leaders are being called upon to do more than just react – they must anticipate, educate and lead. In a recent conversation hosted by Abigail Benham, manager at Frazer Jones, Carl Robson, a seasoned HR leader with experience across more than 20 countries, shared his insights on how businesses can prepare for the evolving landscape of employment law.
Don’t panic – plan
Carl’s first piece of advice is simple but powerful: “Try to calm down, don’t panic.” Much of the current discourse in HR circles revolves around legislation that hasn’t yet materialised. “There’s a lot of speculation,” he explained, “and people are nervous because they’re trying to plan for the unknown.”
Rather than getting caught up in hypotheticals, Carl recommends focusing on what is already confirmed. For example, the EU Pay Transparency Directive, set to come into force in 2026, is a known quantity. “It has some pretty far-reaching consequences,” he noted, “and it may be that some organisations already have a lot of the infrastructure they need to support that – or they might be starting from zero.”
This proactive approach helps HR teams streamline their planning and align with future legal requirements, while also reducing legal risk and ensuring legal compliance.
Empower through learning
One of the most exciting opportunities Carl sees in this period of change is the chance to foster a learning culture within HR teams. “If you’re in a senior role, the reality is you don’t have time to dig into the micro detail of legislation,” he said. “Maybe your team step up and learn and take the lead for that.”
This shift not only distributes responsibility but also empowers team members to grow into leadership roles. It’s a chance to make what can be a dry topic – employment law – into something dynamic and engaging. Upskilling teams in areas like collective bargaining, unfair dismissal and employee rights can also enhance decision-making and support better conflict resolution.
Equip your managers
Carl’s second key recommendation is to “enable managers.” These are the people who will be dealing with the day-to-day implications of legal changes. Coaching and supporting line managers is essential, especially as they navigate complex HR policies and working conditions.
Abigail echoed this sentiment, noting that talent acquisition professionals are increasingly being asked to find candidates with multi-jurisdictional employment law expertise – an almost impossible task given how rapidly laws evolve. Instead, building trust within teams and investing in internal capability is key.
Build trusted legal partnerships
When it comes to navigating complex or controversial legal issues, Carl advises building strong relationships with local legal firms. “You’ll never be able to have the knowledge to be a master in all countries,” he said. “Making sure you go in with the outcome you want and having a trusting relationship with your legal counsel would be my recommendation.”
While resources like the CIPD website and HR newsletters are useful for foundational knowledge, nothing replaces pragmatic, in-country legal advice when it comes to nuanced scenarios. This is especially important when dealing with issues like statutory sick pay, national minimum wage or zero-hours contracts.
The rise of the specialist
A notable trend Carl and Abigail discussed is the rise of newly created employee relations roles in boutique financial services firms – particularly those without large in-house legal or HR teams. These roles are no longer just about casework. “This particular focus has been more around the strategy and what the business is predicting for the future,” Abigail observed.
Carl agreed, predicting continued investment in employee relations and reward roles. “The realisation that there’s a massive amount of value in investing in specialists versus generalists is present in the market,” he said. “The true business partnering from employee relations professionals will become more and more prevalent.”
These roles are also increasingly tied to initiatives around employee engagement, mental health and employee well-being – areas that are critical to retention and a positive workplace culture.
Looking ahead: M&A and global hubs
Carl also anticipates a surge in mergers and acquisitions (M&A) activity, particularly in London, New York and potentially Singapore. “We haven’t experienced a lot of that for probably three to five years,” he said. “This year is where a lot of that investment is going to unlock.”
This shift will demand a different focus from HR teams – one that is proactive, strategic and globally aware. It will also require a deeper understanding of employment rights, flexible working, hybrid working and remote work policies to meet the specific needs of diverse workforces.
A constantly evolving role
As Abigail concluded, “The role of human resources is evolving constantly.” The past few years may have felt stable in some respects, but the demands on HR professionals are shifting rapidly. The move towards centres of excellence and the integration of specialists alongside business partners is becoming the new norm.
Carl’s insights serve as a timely reminder: while the future of employment law may be uncertain, the opportunity for HR leaders to shape that future has never been greater.
