Osborne Clarke senior associate Ed Grey shares insights on his role advising founders and the unique challenges that come with supporting fast-growth companies
Employment law appealed to Osborne Clarke senior associate Ed Grey for its breadth as much as its people focus. “We do the day-to-day advisory work, but then we also have the transactional element and the litigation aspect, and there aren’t many teams — if any — that offer that mix of all three,” he says.
Naturally sociable, Grey enjoys that his practice is “all about people”, as well as the strategic elements of the role. One partner Grey works alongside describes tricky negotiations as “a bit of a game of chess, or cat and mouse”. Grey agrees: “That is probably the most enjoyable part.” Ed works with founders and early-stage companies and the employment law considerations often differ from those of established corporates. Early on, he and his colleagues will advise on contracts for the founders, and a key element of this is protecting both the individual and the company while also future-proofing the contract for an investment or sale, which is often the ultimate goal.
Unlike many mature companies which have established policies and procedures in place, start-ups may lack those policies and procedures and have little experience with day-to-day employment issues such as grievances, disciplinaries, or performance management. Rapid hiring takes centre stage, while planning for “what happens if it goes wrong” can be an afterthought. Grey’s role is largely proactive: flagging when headcount and risk levels mean the need for established policies and procedures is becoming more important.
Many start-ups are too small to have a dedicated HR department. Some start-ups “use a third-party HR provider who dips in one day a week”. Outsourcing can help, but it is costly, and the expense often weighs heavily on early-stage companies. Remuneration is another challenge. For obvious reasons, early-stage companies may find it difficult to compete with more established companies when it comes to salaries, and therefore they need to think of other ways of attracting and retaining top talent. There are other remuneration tools available, such as share option schemes. For example, the options may vest over, say, four years to lock key employees in, then crystallise only on an IPO, sale, or other exit.
“Quite often options will then vest over a period of time and if an exit happens, the option holders will be given the opportunity to exercise them and sell them at that point along with the other founders,” Grey tells us. Start-ups are often able to use tax-advantaged schemes in the UK to make these packages more attractive, offering “better tax treatment” than shares in a large, listed company. This is where the incentives team will provide their advice. Early stage companies also have to think about how to pitch other remuneration and benefits such as discretionary bonuses, family leave policies, and private health insurance, Grey explains.
The employment law landscape, and working practices more broadly, are changing rapidly — with a significant impact on small businesses. The prospect of day-one unfair dismissal rights, part of a widely trailed employment rights package by the Labour government, would affect all companies but could hit start-ups hardest, he says. Scaling up often means hiring quickly which inevitably doesn’t involve a focus on what will happen if circumstances change or things go wrong, Grey says. The proposals to unfair dismissal rights will add more procedure, but smaller companies may lack robust processes. “For example,” Grey continues, “if underperformance is not addressed early with extended probations, clear feedback, and set timelines, legal risk can increase.” The cost is not just potential awards at the Employment Tribunal — it is also the time and resource needed to handle issues properly, something lean teams often lack.
Workplace patterns are shifting too. Many organisations are pushing employees to return to the office and in some sectors there is a push for a full return to the office. Changing habits is “probably the biggest barrier”, Grey says, alongside practical constraints such as space. Some businesses expanded rapidly after Covid and now cannot seat everyone five days a week. A further challenge comes from the new flexible working regime. Since April 2024, candidates can make two requests in 12 months, employers must reply within two months, and consultation is required. Against a backdrop of employers calling staff back, more workers know their rights — and are prepared to use them. For smaller employers, this adds up to significant time and cost.
What about a formal ‘right to switch off’? Grey has not yet seen any UK businesses adopt one. He suggests a strict curfew might not fit modern working patterns, where people often break up their day — doing a school run at four, feeding the children, and then logging back on at eight — or respond to client demands at all hours.
Looking ahead, Grey identifies two big themes. The first is absence and mental health. With longer hours for many, rising awareness, and expanded routes to obtain fit notes from a wider group of medical professionals, managing sickness absence and adjustments is becoming more complex.
The second theme is AI. Grey points to this being a growing consideration for companies, for example in respect of its use in recruitment and assisting employees with their jobs, and there are of course legal considerations that come with the use of AI. Beyond these questions, restructurings tied to automation are already happening in some sectors.
On the tools side, Grey says that AI is a focus area of the firm and that staff are encouraged to get involved. Osborne Clarke’s OC Solutions team is well-versed in developing technological solutions for clients’ legal problems. The team collaborates with in-house teams to create cloud-based platforms that co-ordinate workflows, automate documents, provide shared dashboards, improve visibility over projects and risk, and help clients manage legal operations more productively.
For students eyeing this space, the takeaway is a practice area that refuses to sit still and is going through a lot of change currently. Grey’s week might swing from drafting contracts for an early-stage business, to advising on a live grievance, to negotiating a tricky termination where, yes, it can feel like “cat and mouse”. It is a people-centred brief that rewards strategic thinking and attention to detail.
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