Navigating the Future of Work: Key Takeaways from Auxo’s Industry Event
The future of work in the UK is being shaped by AI, evolving legislation, and shifting workforce expectations. At Auxo’s latest event, leaders in employment law, compliance, and workforce strategy explored what this means for employers in relation to the Employment Rights Act UK, AI in the workplace, and increasing operational risk.
The discussion brought together legal, compliance, and commercial perspectives to spotlight where organisations are most exposed and what they need to do next.
“Navigating the New Era of Work: Future-Proofing Your Workforce and Understanding the Employment Rights Act.”
This is the second in our series exploring the future of work. You can read part one here.
Employment law is increasing employer risk
Jeanette Lucas, Partner and Head of Labour and Employment, outlined how proposed changes linked to the Employment Rights Act could significantly increase employer risk.
In particular, changes to unfair dismissal timelines, potentially reducing the qualifying period to around six months, combined with greater compensation exposure, mean businesses may have far less room for error when managing performance.
For employers, this shifts the focus firmly onto early-stage performance management. Issues that were previously addressed over a longer period now need to be handled within probation.
Key implications include:
Greater discipline in managing performance within the first six months
Increased training and accountability for line managers
More structured probation processes and earlier intervention
Higher financial exposure when managing senior exits
This is already driving what was described as a “professionalisation” of line management. With less margin for error, leadership capability is becoming a direct business risk.
Supply chain liability is expanding
Shazia Imtiaz highlighted how umbrella reform is reshaping accountability across the supply chain.
The introduction of joint and several liability shifts responsibility for tax compliance beyond umbrella companies. Recruitment businesses (and in some cases, end clients) can now be held accountable.
This significantly raises the bar for due diligence.
Key considerations include:
Moving from one-off onboarding checks to ongoing supplier monitoring
Gaining visibility of company structures, directors and financial health
Implementing structured reporting and risk dashboards
Preparing contingency plans if suppliers fail
Compliance and financial stability now go hand in hand
Alex Moore, Chief Sales Officer at Sapphire, outlined how businesses are reducing supplier numbers to improve visibility and limit exposure.
With 78% of employees already using AI tools at work, organisations can no longer treat AI adoption as separate from compliance, leadership and operational control.
Other trends include:
Greater scrutiny from end clients over supply chain structures
Increased demand for transparency and real-time reporting
Growing use of AI tools to audit payroll and monitor compliance
Market consolidation towards fewer, more trusted partners
What this means for employers
Stronger line management helps reduce legal exposure
Better hiring decisions improve performance and retention
Ongoing supplier oversight protects against compliance risks
Targeted upskilling increases the return on AI investment
At the same time, parts of the legislation remain unclear and the industry is still working through conflicting elements. The immediate priority for most organisations is ensuring compliance ahead of April, while consultation feedback continues to shape what comes next.
As legislation changes and compliance expectations increase, we support businesses in making practical decisions about hiring, performance and structure.
If you’re reviewing your hiring approach, team structure or leadership capability this year, get in touch with Auxo or register your interest for future events.
