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Recruitment Watch

Issue 33: July 2026

Recruitment Watch

Editor's note

Nick Davis - Mishcon de Reya

In this edition, we explore a series of employment law reforms which are set to reshape hiring, workforce planning and employment risk across the recruitment sector. With changes to collective redundancy consultation and unfair dismissal rights to the removal of the statutory cap on unfair dismissal compensation, these reforms are set to influence hiring decisions, workforce planning and employment risk for recruitment businesses and the employers which they support. 

We discuss potential reforms to non-compete clauses in the UK and what these developments could mean for candidate mobility, talent acquisition strategies and competition for talent across key sectors. 

With artificial intelligence continuing to transform recruitment processes, we unpack the EU AI Act and consider its implications for organisations using AI-powered tools in candidate screening, assessment and hiring decisions. 

We also turn our attention to immigration policy, examining proposals that could extend the route to UK settlement to ten years and assessing what these changes may mean for attracting and retaining international talent in an increasingly competitive global market. This development could have important implications for recruitment businesses and employers facing ongoing skills shortages and seeking to access international talent pools. 

As regulatory obligations continue to evolve, we highlight new requirements for handling data protection complaints and outline the practical compliance considerations for recruitment businesses processing significant volumes of candidate and employee data. These reforms will be particularly relevant for agencies and employers managing large candidate databases and seeking to maintain compliance in an increasingly regulated environment. 

If you would like to discuss any of the issues raised, or if there is a topic which  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
man walking in lobby with suitcase
Multi-site employers: collective redundancy consultation is about to work very differently

The Employment Rights Act 2025 introduces a major shift to collective redundancy rules, with a new organisation-wide trigger capturing redundancies across multiple sites. This change, coupled with significantly increased financial penalties, raises the stakes for multi-site employers. With implementation expected in 2027, businesses should act now to centralise tracking, plan consultation logistics, and align their processes.

News
looking up at a glass building
Unfair dismissal rights from six months: and why acting at five months may not be enough

From January 2027, employees will gain unfair dismissal protection after just six months, significantly shortening the current two-year threshold. This change reshapes how employers manage probation, with decisions needing to be made earlier to avoid legal risk. Businesses should act now to tighten processes, train managers and prepare for increased claims and costs.

News
blockchain
EU AI Act simplified? Unpacking the AI Omnibus Agreement of May 2026

On 7 May 2026, the Council of the EU announced that a provisional political agreement had been reached with the European Parliament on the “AI Omnibus” (part of the EU’s Digital Omnibus simplification agenda) to streamline parts of the EU AI Act ahead of key compliance deadlines.

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