Mishcon de Reya page structure
Site header
Menu
Main content section

Recruitment Watch

Issue 31: December 2025

Recruitment Watch

Editor's note

Nick Davis - Mishcon de Reya

Welcome to the Winter edition of Recruitment Watch, where we delve into the legal and regulatory updates currently shaping the recruitment services sector. 

In this edition, we examine the key measures from the Autumn Budget 2025 and their impact on recruitment businesses, including changes to tax and employment law that will affect agencies and staffing firms in the coming year. 

We consider the Government’s decision to scrap day one unfair dismissal rights, confirming a six-month qualifying period, and discuss what this means for workforce management and legal risk in the sector. 

We also explore the essentials for building a world-class workforce, focusing on immigration, tax, reward, and pay transparency. This update highlights the practical steps UK employers and recruitment businesses should take to attract and retain top talent in a competitive market. 

With artificial intelligence continuing to transform the world of work, we highlight our latest resources and updates. Our AI in the Workplace guide explores the legal and practical implications of AI adoption, while our Generative AI Policy Tracker and AI Resource Centre offer practical guidance on compliance, intellectual property, and best practice for recruitment businesses. 

We look at emerging fraud trends for 2025, focusing on the paradoxical role of AI in both preventing and enabling fraud, and consider the growing importance of competition law in labour markets, outlining key risks and enforcement trends for the recruitment sector. 

If you would like to discuss any of the issues raised, or there is a topic you would like us to cover in a future edition, please get in touch with a member of the Recruitment Services team or contact us directly. 

News
Ground view of large buildings in London

Day-one unfair dismissal rights scrapped: Six-month qualifying period confirmed

After weeks of Parliamentary ping-pong between the House of Commons and the House of Lords, the Government has rowed back from one of its flagship manifesto pledges. Rather than introducing unfair dismissal protection from the first day of employment, they will reduce the current two-year qualifying period to six months. The announcement follows discussions chaired by the Government between business representatives and trade unions. This stakeholder engagement reflects recognition that the original day-one proposal generated significant concerns about workability and its potential impact on recruitment.

Hub
technology ai blue

AI in the workplace

As AI becomes increasingly integrated into crucial recruitment and employment processes, understanding the implications of AI deployment in these contexts is critical. This series examines AI's growing impact on recruitment, HR and employee management, highlighting the importance of understanding the regulatory, legal and commercial issues that arise from its use.

Hub
artificial intelligence

AI resource centre

Welcome to Mishcon de Reya's AI resource centre, our suite of key resources including insightful articles, upcoming events, and practical handbooks and guides that are tailored to help you understand the implications and opportunities of AI in today's dynamic regulatory environment.

Hub
big ben reflecting in the river thames

Autumn Budget 2025

The Chancellor delivered her second Budget today as she sought to balance financial constraints and political ambitions without breaking manifesto promises. Expectations had already cooled in the lead up to the announcement, not least because several key measures appeared unexpectedly in an Office for Budget Responsibility release issued only minutes earlier. What followed this afternoon broadly aligned with that early glimpse: a Budget built around revenue stability, modest adjustments and further refinement of policies already set in motion.

Subscribe

Never miss a publication by signing up to our mailing list

Recruitment Watch Issues

How can we help you?
Help

How can we help you?

Subscribe: I'd like to keep in touch

If your enquiry is urgent please call +44 20 3321 7000

Crisis Hotline

I'm a client

I'm looking for advice

Something else