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The Agency Edge: New Rules of People Management

Why employment law is no longer just an HR issue in agency life

UK employment law changes 2026

For most agencies, employment law sits within HR. Managers focus on delivery, clients and team performance, calling on HR to step in if something goes wrong.

But changes to employment law introduced last week means things have changed and with further reforms scheduled in late 2026 and throughout 2027, the risk of ‘getting it wrong’ now falls as much into the hands of line managers as HR.

Employment law is now a factor for consideration in everyday management decisions and for PR and creative agencies that’s especially a challenge. In this industry, people management is often fast, informal and commercially driven.

Legislation can often be overlooked in routine decisions such as giving feedback, deciding who gets flexibility, handling a return from maternity leave, managing sickness absence or letting someone go during or after probation. 

Each of these may not feel like they’re a legal matter but if they aren’t handled fairly and reasonably, they can become one.

Recent changes to UK employment law around day-one rights, statutory sick pay reforms and stronger protections linked to whistleblowing and harassment increase the likelihood that issues will arise and escalate if handled inconsistently.

The two-year buffer has gone

Managers are no longer operating in an environment where the risk is low until an employee has been with the company for two years. By next January, that buffer will have been significantly reduced through changes introduced by the Employment Rights Bill.

What agencies should worry about

Here are the areas where agencies may be particularly exposed:

  • Informal cultures: Creative businesses often pride themselves on their informal approach. But being “less corporate” can easily translate into inconsistency; a place where legal risk thrives.
  • Fast-paced decision making: Client demands and shifting priorities mean managers act quickly. This can cause poor documentation, unclear rationale for decisions and shortcuts in process, all of which are difficult to defend later.
  • Gaps in managers’ capability: Many team leaders are promoted for their technical expertise or client management abilities, not people management expertise. Often, they’re expected to learn on the job – an approach that is increasingly risky under the current legal framework.
  • Small margin for error: A single mishandled situation can have a disproportionate knock-on effect in terms of client impact, team disruption, reputational damage or even tribunal risk. While HR still plays a critical role, it is no longer the first line of defence. The quality of the day-to-day conversations managers have with their teams matter more than policies. Early decisions such as hiring, onboarding and probation carry more weight and consistent management across individuals is critical.
  • Managers now need to recognise when something is becoming higher risk and act accordingly. 

How to prepare your team

This isn’t about turning your managers into employment lawyers. It’s about equipping them to operate safely and confidently in a more regulated environment.

At a practical level, effective managers now must:

  • Understand the basics that matter – not the full legal framework, but where the real risks sit. This includes discrimination, fair process, documentation and consistency.
  • Handle issues early and appropriately – avoiding difficult conversations is one of the biggest drivers of escalation. Addressing issues early, with clarity and fairness, significantly reduces risk.
  • Document as they go – not excessive paperwork, but clear, factual records of key conversations and decisions.
  • Know their limits – recognising when a situation needs HR or legal input is now a core management skill, not a sign of ineffectiveness.

Looking ahead, this is only the start. The changes introduced this month are not a one-off adjustment. They’re part of a broader change that will lead to stronger employee protections, greater enforcement and increased expectation on employers to demonstrate fairness. Reforms expected later in 2026 and during 2027 will continue to raise the bar.

For agency leaders, that means asking a harder question than, “Do we have the right policies?”

It means asking, “Are our managers equipped to understand the risks, handle situations in the right way and know when to pause and ask for support?”

Free Webinar for Agencies

Because of the interest we have seen in this subject, our expert Liz Baines will be running a free online webinar later this month to provide Agency leaders with more insight into the practical steps agencies should be taking in light of the new legislation. If you are interested in attending email us and we will share details. 

The Amber Group also offers a range of management training to equip new and experienced managers with the skills and confidence to navigate this landscape. Contact our expert Liz Baines (Elizabeth@ambergroup.net) if you would like to learn more

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