Dixcart Legal provides you with a summary of Employment Law Facts and Figures for 2025.
For more information, please contact: Anne-Marie Pavitt on: hello@dixcartuk.com
Dixcart Legal Employment Law Facts and Figures – 2025
Author: Anne-Marie Pavitt
News & Views
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – April 2025
A short collection of employment law case updates this month. We look at when a whistleblowing claim may be relevant, how a contract can be inside IR35 despite major factors which might otherwise land it outside IR35, and whether union business is carried out ‘within the course of employment’ and therefore whether behaviour at such times is capable of being caught by the Equality Act.
- Whistleblowing: External job applicant could not bring whistleblowing detriment claim
- IR35: Hypothetical contract was one of employment despite lack of notice period or obligation to provide work
- Harassment: Racial harassment of employed union official during discussion about union fees was not committed “in the course of employment”
Whistleblowing: External job applicant could not bring whistleblowing detriment claim
In Sullivan v Isle of Wight Council [2025] EWCA Civ 379, the Court of Appeal has held that the exclusion of job applicants (other than those applying for jobs in the NHS) from the whistleblowing detriment provisions in the Employment Rights Act 1996 is compatible with Article 14, read with Article 10, of the European Convention on Human Rights (ECHR).
In this case, after unsuccessfully applying for two jobs with the respondent, the claimant complained about the interviewers’ conduct. The respondent investigated and found the complaint to be unsubstantiated. However, in breach of its complaints policy, it failed to offer the claimant a further review. The claimant issued tribunal proceedings, arguing that this failure subjected her to a detriment because she had made a protected disclosure and that protection from detriment for whistleblowing should be extended to include job applicants.
Article 14 of the ECHR sets out grounds on which discrimination affecting the rights and freedoms set out in the ECHR is prohibited. There was no dispute that Article 14 applied to the subject matter of the claim which concerned the exercise of the Article 10 right to freedom of expression (in particular, the right to impart information). Unlike the tribunal and EAT, the Court of Appeal held that treatment of a person on the ground that they were a job applicant was capable of being treatment on the ground of some “other status”, one of the grounds on which Article 14 prohibits discrimination.
However, the court agreed with the tribunal and EAT that, as a job applicant, the claimant was not in a materially analogous position to either workers or applicants for NHS posts who were protected by the whistleblowing detriment provisions. The court also held that any difference in treatment would have been objectively justified because it pursued a legitimate aim, and the means adopted to achieve that aim were appropriate and proportionate. Finally, the court agreed with the EAT that the alleged detriment suffered by the claimant had not been connected to her application for a job with the respondent.
IR35: Hypothetical contract was one of employment despite lack of notice period or obligation to provide work
In George Mantides Ltd v HMRC [2025] UKUT 124,the Upper Tribunal (UT) has held that arrangements for providing a doctor’s services to a hospital would have been an employment contract, had the doctor contracted directly (hypothetical contract) rather than through a personal service company (taxpayer), rejecting the taxpayer’s appeal against HMRC’s determination that its income was liable to income tax and national insurance contributions under the intermediaries legislation (IR35). In doing so, the tribunal remade the decision of the First-tier Tribunal (FTT) due to its errors of law in reaching the same conclusion.
The UT’s decision concerned the consequences, following HMRC v Professional Game Match Officials Ltd [2024] UKSC 29, of those errors (as determined in a previous Upper Tribunal decision).
In rejecting the taxpayer’s appeal, the UT reasoned that:
- It was inappropriate to compare the hypothetical contract with one for providing the doctor’s services to another hospital that the FTT had found constituted self-employment, despite both hypothetical contacts being (ignoring the FTT’s errors) similar.
- The FTT’s error, that the hypothetical contract contained an obligation to provide work (either alone or combined with its other error, concerning a one-week notice period), might have made a difference to its decision, but those factors (which related to the mutuality of obligation’s strength at stage three of the RMC test) were not particularly strong pointers towards self-employment, in the context of a short temporary engagement.
- It had to consider the terms and circumstances of the hypothetical contract, including that it would have been for personal service, without a right of substitution and with a sufficient framework of control and mutuality of obligation (in the sense of a wage-work bargain). Other factors were either neutral (degree of actual control) or pointed only weakly to employment (use of equipment and staff and some integration) or self-employment (costs, including insurance, incurred and lack of employee benefits).
The decision might seem surprising, given the importance the FTT placed on the notice and work obligation in distinguishing this contract from the doctor’s other contract on similar terms, but the FTT’s decision on that other contract was not appealed (in time) to the UT.
Harassment: Racial harassment of employed union official during discussion about union fees was not committed “in the course of employment”
In Campbell v Sheffield Teaching North Hospitals NHS Foundation Trust [2025] EAT 42,the EAT has upheld an employment tribunal decision that an NHS Trust was not liable for a racist comment by one of its employees, Mr Hammond, who is white, calling the claimant, Mr Campbell, who is black, a “fucking monkey”.
Mr Campbell, a Trust employee, was Branch Secretary of UNISON. Mr Hammond, another Trust employee, had sought to terminate his UNISON membership, but his subscriptions were still being deducted. He went to Mr Campbell’s office during a break from work to ask for a refund. When Mr Campbell refused, Mr Hammond became frustrated and made the racist comment.
The EAT accepted that, when considering whether Mr Hammond was acting “in the course of employment” for the purposes of section 109(1) of the Equality Act 2010 (EqA 2010), the tribunal had correctly taken the whole context into account. The weight attributed to various factors was a matter for the tribunal and there was no error in its approach. It had noted that there were several connections between the incident and Mr Hammond’s employment by the Trust: it took place during Mr Hammond’s working day, in an office close to his working area, and it related to union membership that entitled him to the support of a union recognised by the Trust and in which Mr Campbell had an important role. However, Mr Hammond’s membership of UNISON was a personal choice and the conversation related to a personal dispute with UNISON.
In the alternative, the EAT also found that the tribunal had not erred in finding that the Trust had taken all reasonable steps to prevent harassment for the purposes of section 109(4) of the EqA 2010. Mr Hammond had attended an induction session emphasising the Trust’s core values, he underwent annual performance assessment which considered whether he acted in accordance with those values, the values were displayed on posters, and he undertook mandatory equality and diversity training, most recently a few weeks before the incident. The two-stage approach advocated in Canniffe v East Riding of Yorkshire Council UKEAT/1035/98, requiring a tribunal to consider any steps taken and whether there were other reasonable steps which could have been taken, was distinguished. In Canniffe, the employer had taken some steps, but in the present case the tribunal had been entitled to conclude that the Trust had taken all reasonable steps.
Further Information
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
Back
The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law General Update – April 2025
Lots of updates in this month’s newsletter. New entitlements came into force at the beginning of the month with regard to neonatal care leave and statutory pay. Whilst a survey has found LGBTQ+ employees feel unsupported by their HR teams, the government is busy investigating race and disability rights issues and asking for your help with this. A survey has been carried out looking at workplace abuse and changing trends in employment and there are some important changes to immigration and sponsorship fees and guidance from the ICO about storage of personal data.
- Parental Leave & Pay: Government guidance on statutory neonatal care leave and pay published
- Equality: Study finds nearly half of LGBTQ+ employees feel unsupported by HR
- Equality (Race and Disability) Bill: government issues equality law call for evidence
- Employment Survey: Survey highlights workplace abuse and changing trends in employment
- Immigration: Changes to the definition of “small sponsor” will impact some sponsorship fees
- Data: ICO publishes new guidance on anonymisation and pseudonymisation
Parental Leave & Pay: Government guidance on statutory neonatal care leave and pay published
New statutory entitlements to neonatal care leave (NCL) and neonatal care pay (SNCP) came into force on 6 April 2025. On 6 April 2025, the government published a suite of new guidance for employees and employers on NCL and SNCP:
- Neonatal Care Pay and Leave. A guide for employees explaining entitlement, eligibility, how to claim, employment rights and how to cancel NCL or SNCP.
- Statutory Neonatal Care Pay and Leave: employer guide. A guide for employers explaining entitlement, eligibility, employer record-keeping requirements, the financial assistance available to employers to pay SNCP, and the information an employee must provide, their employment rights and how they can cancel NCL or SNCP.
- Business changes that affect payment of Statutory Neonatal Care Pay. A guide for employers who take over a business, stop trading, become insolvent or make an employee redundant.
- How different employment types affect Statutory Neonatal Care Pay. A guide explaining the different SNCP rules that apply to different types of employees and workers, including agency workers, directors and employees with more than one job with the same employer, or with more than one employer.
- Employee circumstances that affect payment of Statutory Neonatal Care Pay. A guide explaining how different employee circumstances may affect their entitlement to SNCP.
- Manually calculate Statutory Neonatal Care Pay. A guide explaining how to manually calculate an employee’s SNCP entitlement.
- Tell an employee that they’re not eligible for Statutory Neonatal Care Pay (NEO1). A form for employers to use to advise an employee that they are not entitled to SNCP.
ACAS previously published its new guidance on NCL and SNCP on 2 April 2025. Read it here.
Equality: Study finds nearly half of LGBTQ+ employees feel unsupported by HR
On 14 April, website People Management reported that a study carried out by Pride in Leadership, a UK-based LGBTQ+ Leaders’ Community, has revealed that nearly half of LGBTQ+ employees feel unsupported by their employers’ HR departments when facing LGBTQ+-related issues. The survey of 1,017 LGBTQ+ individuals found that 42% of respondents felt that their concerns were “brushed off” by HR, highlighting a significant gap in support and understanding.
The study identified several barriers to LGBTQ+ career advancement, including a lack of inclusive workplace policies, experiences of discrimination and biased recruitment practices. Among the respondents, 85% reported that they have encountered significant obstacles linked to their identity, with a lack of representation in leadership being a major concern. Only 15% of respondents felt that their workplace was a safe space to share their identity.
To address these issues, the study calls for HR departments to take a more proactive approach to create a supportive and inclusive work environment. This includes providing training on LGBTQ+-specific issues, developing and implementing inclusive policies, and promoting diversity and representation in leadership. It also urges employers to actively work to eliminate biased recruitment practices and ensure that hiring processes are transparent and fair.
Equality (Race and Disability) Bill: Government issues equality law call for evidence
On 7 April 2025, the Office for Equality and Opportunity published a call for evidence on equality law. The wide-ranging call for evidence seeks views and evidence on areas the government intends to address in the forthcoming Equality (Race and Disability) Bill. These include extending the equal pay provisions in the Equality Act 2010 (EqA 2010) to race and disability, ensuring that employers cannot outsource services to avoid paying equal pay, improving enforcement of equal pay by setting up a new Equal Pay Regulatory and Enforcement Unit and improving pay transparency by adopting measures similar to those in the Pay Transparency Directive (2023/970/EU).
The government also plans to bring section 14 of the EqA 2010 into force, allowing direct discrimination claims for combined or dual discrimination to be brought in the employment tribunal. It seeks views and evidence on the prevalence of combined discrimination, including how levels and patterns of combined discrimination may differ across different situations, sectors and regions, and the effectiveness of the remedies available. Evidence is also sought in relation to the prevalence of combined discrimination in relation to indirect discrimination, harassment, victimisation, and the protected characteristics of pregnancy and maternity and marriage and civil partnership, which are not currently covered by section 14.
The Employment Rights Bill will introduce the power to make regulations specifying the steps employers must take to prevent workplace sexual harassment. To assist in the drafting of those regulations, evidence is sought on measures employers can take that have proved effective in practice to reduce or prevent workplace sexual harassment. Evidence is also requested in order to assist the government in determining whether protection against sexual harassment should be extended to volunteers.
Views and evidence are also sought on the extent to which the public sector equality duty is complied with by non-public bodies exercising public functions and the effectiveness of the implementation of the socio-economic duty in Scotland and Wales, with a view to commencing the duty in England.
The call for evidence runs until 30 June 2025. You can read more here: https://www.gov.uk/government/calls-for-evidence/equality-law-call-for-evidence.
Employment Survey: Survey highlights workplace abuse and changing trends in employment
A survey conducted by academics from Cardiff University, UCL, Nuffield College, Oxford, and the University of Surrey, has highlighted the prevalence of workplace abuse in the UK. The Skills and Employment Survey, which is conducted every six years, found that one in seven employees has experienced some form of workplace abuse, including bullying, violence, and sexual harassment. The survey revealed that some occupations, such as nursing (32%) and teaching (28%), are at higher risk of abuse, with women and night workers also being more vulnerable.
The survey also highlighted the impact of the pandemic on the way we work, with over half of workers using spaces intended for other purposes to carry out their work. The adoption of AI is also accelerating, with 24% of those surveyed using AI in their work. However, the use of AI is concentrated in high-paying, high-skill occupations, and is more prevalent among men, younger workers, and those with a degree.
The survey also found that demand for graduate-level qualifications continues to increase, with almost half of workers needing a degree for their current job. However, the number of workers with graduate-level qualifications has declined slightly. The survey also revealed a changing perception of unions, with over a third of employees in non-unionised organisations saying they would vote to establish a union if given the chance.
The researchers warned of the pitfalls and inequality involved in many employees’ working arrangements, particularly with regards to working from home. While some employees are able to create a home office, others are not, and the survey found that money and power play a significant role in determining who is able to work from home and create a comfortable workspace. The researchers called for policy to focus on promoting all forms of flexible working, rather than just working from home, to address these inequalities.
Immigration: Changes to the definition of “small sponsor” will impact some sponsorship fees
Sponsors who are defined as “small” pay lower fees for Skilled Worker and Senior or Specialist Worker sponsor licence applications and the Immigration Skills Charge (ISC) for these workers’ visa applications.
In defining “small” and “large” sponsors, the Home Office relies on the definition of “small” and “large” companies found in the Companies Act 2006 (section 382), which changed on 6 April 2025. (See also, regulation 2 of the Immigration Skills Charge Regulation 2017 (SI 2017/499).)
The definition of a small company is based on the following three thresholds. If a company exceeds at least two of the three thresholds, it will not be a small company:
- Number of employees: 50 (this remained unchanged on 6 April 2025).
- Turnover: £15 million (changed from £10.2 million on 6 April 2025).
- Balance sheet total: £7.5 million (changed from £5.1 million on 6 April 2025).
If, as a result of this change to the definition of “small company”, the sponsor company’s classification has changed from small to large or vice versa, the sponsor must notify the Home Office within 20 working days using the sponsor management system, to comply with their sponsor reporting duties. The sponsor may need to provide evidence, such as recent company accounts and a list of employees.
For more information see: UK Visas and Immigration: Workers and Temporary Workers – guidance for sponsors part 1: apply for a licence (9 April 2025) and Immigration Skills Charge Regulations (SI 2017/499).
Data: ICO publishes new guidance on anonymisation and pseudonymisation
The Information Commissioner’s Office (ICO) has published guidance on anonymisation and pseudonymisation. The ICO notes the risks and benefits of sharing personal data, as well as the importance of anonymisation techniques to provide a privacy-friendly alternative to data sharing.
The ICO guidance provides an overview of anonymisation techniques, including their strengths and weaknesses and the suitability of their use in particular situations, including case studies. The main benefits of anonymisation include protecting people’s identities, greater security and improved risk reduction relating to the disclosure or publication of personal data.
The guidance also covers pseudonymisation, which replaces information that directly identifies people. This might include replacing names or identifiers with resource numbers. The ICO reminds organisations that pseudonymisation should not be confused with anonymisation and that pseudonymisation is a way of reducing risk and improving security but not a way of transforming personal data to the extent the law no longer applies.
The guidance also includes advice on accountability and governance measures for organisations and deals with the role that anonymisation plays in the three regimes of data protection law:
- General processing under Part 2 of the Data Protection Act 2018 (DPA 2018) and the UK General Data Protection Regulation (2016/679) (UK GDPR).
- Law enforcement processing under Part 3 of the DPA 2018.
- Intelligence services processing under Part 4 of the DPA 2018.
The guidance sits alongside the ICO data sharing code of practice, which gives practical advice on how to share personal data in line with data protection law. The ICO notes that anonymisation offers an alternative way to use or share data by making sure that people are not identifiable.
Although the guidance is not statutory and there is no penalty for not following the recommendations, the ICO will take it into account when looking into an issue about anonymisation.
Further Information
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
Back
The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – March 2025
This month we bring you the usual variety of employment law cases from the start to finish of a role, taking a look at what the Home Office expects of sponsors carrying out their duties, to the discrimination faced by disabled job seekers and how they choose to disclose their disability, to more guidance from the EAT as to the test for worker v employee, and lastly, another look at a case of unfair dismissal.
- Immigration: No duty for Home Office to carry out impact assessment before revoking sponsor licence
- Disability Discrimination: Claimant who reasonably believed disclosing disability would harm future career entitled to anonymity order
- Worker Status: EAT gives guidance on test for worker status
- Unfair Dismissal: Court of Appeal finds single incident of touching a pupil was not sufficient to warrant dismissal of school inspector
Immigration: No duty for Home Office to carry out impact assessment before revoking sponsor licence
In R (Prestwick Care Ltd) v Secretary of State for the Home Department and R (Supporting Care Ltd) v Secretary of State for the Home Department [2025] EWCA Civ 184, the Court of Appeal has held that the Home Office is not under a duty to carry out an impact assessment before revoking a sponsor licence. The claimants in the two joint appeals were both care homes which relied heavily on sponsored workers to fill staffing shortages. They had appealed against the Home Office’s decisions to revoke their respective sponsor licences, following a compliance visit to their premises where breaches of sponsor duties were discovered.
The Court of Appeal emphasised that sponsorship is “a privilege not a right” and that there is a “high level of trust placed in the sponsor” to comply with its sponsor duties. Consequently, in addressing the focal point of the joint appeal, the court confirmed that, although the Home Office must conduct their compliance enforcement with procedural fairness, it is not under a duty to carry out an assessment of the impact of revocation on the sponsor, its employees, service users and the wider community, before revoking a sponsor licence. The issue for the Home Office was the impact of the sponsor’s breach of the guidance on the integrity of immigration control, not the consequences for the sponsor and others of removing the sponsorship privilege.
This judgment reinforces the importance of compliance with sponsor duties and the potentially serious commercial and reputational impact on a business of sponsor licence revocation.
Separately, the recent statement of changes to the Immigration Rules (see [ref]) has introduced some protection for the growing pool of care workers and senior care workers who are seeking new sponsorship (because their sponsors have been unable to offer sufficient work or have lost their sponsor licences as in the cases above). From 9 April 2025, sponsors of care workers and senior care workers will be required to recruit from this pool before sponsoring new recruits from other immigration routes or from overseas.
Disability Discrimination: Claimant who reasonably believed disclosing disability would harm future career entitled to anonymity order
In F v J [2025] EAT 34,the EAT has held that a tribunal erred when it refused to grant a claimant’s application for an anonymity order in his disability discrimination claim.
The claimant was an academic who had disclosed his disability to his employer but who had otherwise kept his disability hidden (even from close family members) and did not wish for it to be disclosed publicly. In applying for an anonymity order, the claimant argued that disclosure of his disability would considerably reduce his chances of future employment and, if employed as a teacher, knowledge of his disability among pupils would result in considerable disorder.
The EAT held that the claimant had to meet the relatively low evidential threshold of proving that he had a reasonable foundation for his belief that disclosing his disability would harm his future career. The tribunal had set the bar too high by requiring him to prove objectively that his fears were well grounded. It was inherently impossible to prove what would happen in the future. Medical and psychological evidence could demonstrate the extent of the claimant’s disability but could not address the question of whether it carried the stigma that the claimant asserted. The claimant had produced evidence to support his concerns in the form of experimental research which had assessed the impact of disclosure of disability on employment prospects. Based on the material before it, the EAT found that the claimant’s belief was genuinely and reasonably held.
Addressing the open justice principle, the EAT noted that all of the facts in the case would be set out in any judgment and considered that the identity of the parties was not critical to public understanding. The lay members considered that the interference with the principle of open justice was relatively minor and far outweighed by the claimant’s genuine and reasonably held fears.
The EAT substituted a decision that both parties be anonymised throughout the proceedings. Given the level of detail which was likely to emerge, failure to anonymise the respondent would make identification of the claimant highly likely.
Worker Status: EAT gives guidance on test for worker status
In Ter-Berg v Malde and another [2025] EAT 23, the EAT (HHJ Auerbach, sitting alone) has held that an employment tribunal erred in several respects when deciding if an individual, who had previously been found by the tribunal not to have been an employee, was a worker.
As an initial observation, the EAT remarked that it was “unfortunate” that the tribunal had chosen to deal with the questions of employment status and worker status in separate preliminary hearings. Given the overlap between the tests and the likely relevant evidence, the issues should normally be dealt with together.
The tribunal had also erred by:
- Finding that the “personal service” element of the statutory test for worker status was not met. It had reached this conclusion on the basis that it was bound to do so because of its earlier judgments in relation to employment status. However, the earlier judgments did not actually determine the issue of personal service. On the facts, the tribunal should have held that the personal service element of the test was satisfied.
- Concluding that a finding of worker status would be inconsistent with its earlier judgments on employment status. There was a “lower pass mark” in relation to the test for worker status. While the tribunal’s earlier conclusion that there was not sufficient control to establish an employment contract might be a relevant consideration, it was not determinative of the separate test of whether the claimant was a worker.
- Transferring its conclusions in relation to the parties’ intentions as to whether the claimant was an employee to the question of whether he was intended to be, or was, a worker. Comments suggesting that the claimant was “self-employed” were potentially ambiguous and had to be considered individually to discern their meaning. While the relevant contract had explicitly ruled out employment status, there was nothing to suggest that the parties had considered, or ruled out, worker status.
The case was remitted to a fresh employment tribunal.
Unfair Dismissal: Court of Appeal finds single incident of touching a pupil was not sufficient to warrant dismissal of school inspector
The Court of Appeal has agreed with the EAT in Hewston v Ofsted [2025] EWCA Civ 250that a single incident in which a school inspector had touched a pupil without their consent did not warrant dismissal for gross misconduct.
Mr Hewston had been summarily dismissed without warning from his job as an Ofsted school inspector, following a complaint regarding his conduct towards a child during a school inspection. A group of pupils had come in from the rain and Mr Hewston had brushed water off the hair or forehead of one of them, and put his hand on the child’s shoulder. This had led to a complaint by the school. An employment tribunal found the dismissal fair, holding that Ofsted had conducted a fair and reasonable investigation and had a reasonable belief that his actions amounted to gross misconduct.
The EAT allowed Mr Hewston’s appeal and substituted a finding that the dismissal had been unfair. The Court of Appeal upheld the EAT’s decision. There had never been any suggestion of improper motivation, and the incident had been intended as “a friendly act of sympathy and assistance“. The EAT had correctly asked itself whether, in the absence of a “no touch” policy, it was reasonable for Ofsted to have taken the view that Mr Hewston’s conduct was of a kind which he should have realised would be regarded as warranting dismissal. The EAT had correctly held that it had not been reasonable, since the incident did not raise any safeguarding issue and inspectors had been given no training about touching students.
Ofsted argued that the reason for dismissal had included not just the touching incident, but also Mr Hewston’s subsequent lack of remorse. The Court noted that it would not generally be reasonable for an employer to “bump up” the seriousness of an employee’s conduct just because they fail to show proper contrition or insight during the disciplinary process. This was not a case where there had been a persistent failure to recognise any wrongdoing, giving rise to a real risk of more serious misconduct in the future. Mr Hewston had stated that he would not do anything of the kind again and that he would be willing to undergo training.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
Back
The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law General Update – March 2025
With a new government and budget comes a lot of change. This month we report on changes to immigration rules and fees, the results from an independent report published by the Departments for Work and Pensions and Business and Trade about how we can reduce economic inactivity related to people unable to work due to ill-health and disability, a government consultation on proposed mandatory pay reporting affecting ethnicity and disability, and a government response to an official report on statutory sick pay. Lastly, a new campaign has been launched by ACAS to improve understanding and support for neurodivergent workers, as we become more aware of this element of our workforce.
- Immigration: Changes to UK Immigration Rules, and fees increase on 9 April 2025
- Disability: Keep Britain Working Review
- Equality (Race and Disability) Bill: Government issues consultation on mandatory ethnicity and disability pay reporting for large employers
- Statutory Sick Pay: Government responds to Work and Pensions Committee report
- ACAS: Campaign launched to improve understanding and support for neurodivergent workers
Immigration: Changes to UK Immigration Rules, and fees increase on 9 April 2025
On 12 March 2025, the government published a Statement of changes to the Immigration Rules. The main changes include:
- From 12 March 2025, nationals of Trinidad and Tobago are being classified as “visa nationals”, requiring them to obtain a visa before travelling to the UK.
- From 2 April 2025 and 9 April 2025 respectively, certain French children visiting the UK on a school trip and British National (Overseas) nationals will not require Electronic Travel Authorisation prior to travelling to the UK as a visitor.
- From 9 April 2025, there will be changes to the minimum salary threshold for some Skilled Workers (increasing from £23,200 a year to £25,000 a year) as well as some sponsorship protection introduced for care workers and senior care workers.
- From 9 April 2025, there will be restrictions on permitted salary reductions for Skilled Workers.
In January 2025, the government announced its intention to raise immigration fees and charges . The Immigration, Nationality and Passport (Fees) (Amendment) Regulations 2025 (SI 2025/363) have now been passed. Consequently, the Home Office has published details of the new immigration fees, which take effect at 9.00 am on 9 April 2025. Most visa application fees are due to increase by approximately 5 to 10%. The most notable changes include:
- The Certificate of Sponsorship (CoS) fee under the Skilled Worker, T2 Minister of Religion, Global Business Mobility – Senior or Specialist Worker and International Sportsperson routes will increase by almost 120% from £239 to £525. Where possible, sponsors may wish to assign a CoS prior to 9 April 2025 to avoid this increase.
- The Electronic Travel Authorisation (ETA) fee is rising from £10 to £16.
- Naturalisation as a British citizen will increase from £1,500 to £1,605. The sponsor licence application fee will also increase from £1,476 to £1,579 (for large sponsors) and from £536 to £574 (for small sponsors).
Disability: Keep Britain Working Review
On 20 March 2025, the Departments for Work and Pensions and Business and Trade published an independent report, Keep Britain Working Review: Discovery. It is the first stage in Sir Charlie Mayfield’s review of economic inactivity due to ill-health and disability. The review will consider what can be done to address this inactivity, and to support people back into work and to stay in work. The report, which sets out how economic inactivity is viewed and the issues that may need to be addressed to improve it, will be followed by an engagement phase focusing on prevention and pathways back to work (running until the end of May 2025) and then recommendations to the government.
The report notes that the UK appears to be the only advanced economy where economic inactivity is increasing, with 40% more people of working age economically inactive for health reasons than there were in 2019. The growth in the number of people who are becoming economically inactive for health reasons is nearly ten times the growth of the working age population. The largest increases were observed among younger people (aged 16 to 34), with an increase of 1.2 million or 77%. Nearly one in four people out of work due to ill-health are under 35.
The report identifies three areas that are likely to be the focus of future recommendations:
- Employer incentives. At critical moments in managing absence, incentives for employers to retain employees are muddled or misaligned between employers and employees.
- Interventions. When individuals face ill-health, fluctuating conditions or work barriers, there is often a delay before they access effective support and treatment (especially related to mental health). This leads to deterioration in outcomes and longer periods out of work, as well as early exits.
- Case management. When individuals are absent from work because of ill-health or disability, there is often little in the way of effective case management or leadership.
The report also highlights five principles underpinning effective labour market design: strong employer incentives for prevention and retention, early intervention and structured return-to-work support, sufficient support during sickness while maintaining a dynamic labour market, alignment between government and employer roles, and minimising structural barriers to re-employment.
In developing its recommendations, the review will reflect on the reform options being considered as part of the White Paper, Get Britain Working.
The review’s recommendations are expected in autumn 2025.
Equality (Race and Disability) Bill: Government issues consultation on mandatory ethnicity and disability pay reporting for large employers
On 18 March 2025, the government published a consultation on how to introduce mandatory ethnicity and disability pay gap reporting for employers with 250 or more employees, in line with its manifesto commitment.
The government proposes using a similar framework to that already in place for gender pay gap reporting. The same employers would fall within scope, the same six measures of pay would be reported and the same snapshot and reporting dates would be used. However, employers would also be required to report the overall breakdown of their workforce by ethnicity and disability, and the percentage of employees not disclosing their data. Large public bodies may be required to publish additional information on ethnicity, including pay differences by grade or recruitment, retention and progression data. Views are sought on whether employers should also be required to produce action plans.
In contrast to gender pay gap reporting, employees would be asked to self-report their ethnicity and disability status, with an option to opt out. The government proposes using standardised ethnicity groupings. Given data protection considerations, it proposes a minimum of ten employees in any ethnic group being analysed. Smaller groups may need to be aggregated. It is proposed that all employers should report, at a minimum, a binary comparison, preferably between White British employees and all other ethnic minority groups combined. Similarly, with disability reporting, a minimum of ten employees must fall in each group being compared. To avoid the risk of individual identification and the complexities of multiple impairments, the government proposes that disability reporting should take a binary approach of only reporting differences between disabled and non-disabled employees, rather than by type of impairment.
Alongside the new consultation, the government published the findings of the disability workforce reporting consultation carried out by the previous Conservative government in 2021-22. The findings had not previously been published. The consultation showed strong support among both employers and employees for the mandatory collection of disability workforce data by large employers. However, there were concerns, mainly from employee respondents, that reporting would become a tick-box exercise, with no real impact, and that employees may feel forced to self-disclose personal data.
The consultation closes on 10 June 2025. The findings of the two consultations, as well as a forthcoming call for evidence, will inform the government’s approach to the draft Equality (Race and Disability) Bill, to be published in the current parliamentary session.
Statutory Sick Pay: Government responds to Work and Pensions Committee report
On 14 March 2025, the government responded to a report published by the House of Commons Work and Pensions Committee (the Committee). The report was published in March 2024 under the previous Conservative government and had called for a substantial overhaul of the statutory sick pay (SSP) framework ahead of the 2025-26 financial year.
Some of the Committee’s recommendations will be addressed by changes to SSP being made by the Employment Rights Bill (ERB). Removal of the current three-day waiting period will assist with phased returns to work (because SSP will be payable for single days of sickness absence). The lower earnings limit (LEL) for SSP eligibility will be removed. People earning below the current rate of SSP will receive 80% of their normal weekly earnings. The government will update guidance to account for these changes and, as part of this, will seek to clarify the operation of SSP for agency workers.
Contrary to the Committee’s recommendation, the government will not equalise the rate of SSP with the flat rate of statutory maternity pay (SMP). It reasoned that SSP and SMP are paid for different reasons. Employers can plan for maternity leave absences (because they receive at least 15 weeks’ notice) and they can claim back up to 92% of SMP, with those qualifying for Small Employers’ Relief claiming back up to 103% of their SMP payments. In contrast, employers pay the full cost of SSP. Modelling by the Department for Work and Pensions (DWP) estimates that equalising SSP with the rate of SMP would cost businesses an additional £500 million per year when they already face the cost of removing the waiting period and LEL.
Declining to accept the recommendation for a small business rebate for SSP, the government suggested that having responsibility for sick pay encouraged employers to support employees to return to work. The forthcoming review, Keep Britain Working, will consider how employers can be supported in promoting healthy workplaces that enable people to stay in, or return to, work. The Percentage Threshold Scheme, which had provided rebates in certain circumstances until its removal in 2014, had been administratively complex and underused.
ACAS: Campaign launched to improve understanding and support for neurodivergent workers
On 20 March 2025, ACAS launched a campaign to improve understanding and support for neurodivergent workers. The campaign will equip employers with resources and advice to help foster a culture of belonging, where neurodivergent workers can thrive.
The focus of the campaign will be on practical steps employers can take to make work environments more accessible. These will include:
- Inclusive hiring practices. Ensuring recruitment processes accommodate different cognitive styles.
- Reasonable adjustments. Providing tailored support, such as flexible work arrangements and assistive technology.
- Workplace awareness. Educating employers and staff about neurodivergence to reduce stigma and increase understanding.
Alongside the campaign, the Department for Work and Pensions has formed a new expert panel on neurodiversity and employment. The panel is set to examine employment outcomes for neurodivergent people. Running until the summer of 2025, it is expected to provide evidence-based recommendations to inform workplace practices and policy. The panel will consider all types of neurodivergence. It will also explore key barriers to employment and workplace success, effective employer actions to enhance inclusion, government policies that could drive systemic change, the economic benefits that are linked to greater neurodiversity in the workforce, and intersectionality (including how social deprivation, gender and ethnicity impact neurodivergent employment outcomes).
ACAS states that employers should prepare for, among other things, better accountability in ensuring that recruitment and workplace policies support neurodivergent people, more practical guidance, and a stronger evidence base to underpin the benefits of neuroinclusive practices.
The campaign launch and panel formation follow the recent publication of ACAS advice on neurodiversity and a report by researchers at Birkbeck, University of London.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – February 2025
This month we focus on a couple of cases we have seen before, one has now gone to Appeal and the other has come back from Appeal to be judged in the tribunal and is part of a wider set of equal pay claims affecting large retail stores. Our last case considers a flawed disciplinary process resulting in unfair dismissal.
- Direct Discrimination: Christian employee’s dismissal for gender critical Facebook posts was direct discrimination
- Equal Pay: Asda retail workers carried out work of equal value to distribution centre workers
- Unfair Dismissal: Tribunal erred by adopting substitution mindset in conduct case
Direct Discrimination: Christian employee’s dismissal for gender critical Facebook posts was direct discrimination
In Higgs v Farmor’s School [2025] EWCA Civ 109, the Court of Appeal (Underhill, Bean and Falk LJJ) has upheld a Christian employee’s appeal against the EAT’s decision to remit her direct discrimination claim to the employment tribunal. The employee was dismissed by a school because of Facebook posts which it considered could have led readers to believe she held homophobic and transphobic beliefs.
The court substituted a finding that the employee’s dismissal was direct discrimination on the ground of religion or belief. It held that where a dismissal is motivated by the objectionable way in which a belief is expressed, an employer can only lawfully dismiss where it can show that dismissal was an objectively proportionate response. Although the school was entitled to object to the posts because of the offensive language towards gay and trans people, and the context of sex education in schools was relevant to the employee’s work, its decision to dismiss was “unquestionably a disproportionate response”. It was based on concerns about potential future reputational damage. However, even where the risk of reputational damage is shown, an employer’s interference with an employee’s right to express their beliefs must still be proportionate. The proportionality of its interference will depend on whether the views are expressed on matters central to its business, the way in which the beliefs are expressed and whether the views could be imputed to the employer.
There is no objective justification test for direct discrimination under section 13 of the Equality Act 2010 (EqA 2010). However, as established in Wasteney v East London NHS Foundation Trust [2016] ICR 643, section 3 of the Human Rights Act 1998 (HRA 1998) requires the incorporation of the objective justification test in Article 9(2) of the European Convention on Human Rights (ECHR) (freedom of thought, conscience and religion) to the extent necessary to achieve compatibility with those rights. This reasoning was followed by the Court of Appeal in Page v NHS Trust Development Authority [2021] EWCA Civ 255 and was consistent with ordinary principles of domestic construction. The legislature could not have intended that an employee could manifest a belief in any matter they chose, and the ECHR qualified the right to manifest a belief in Article 9(2). Direct discrimination in manifestation cases is uniquely different from discrimination on the grounds of other protected characteristics. It is a special category requiring a more flexible approach.
Equal Pay: Asda retail workers carried out work of equal value to distribution centre workers
In Brierley and others v Asda Stores Ltd ET/2406372/08, an employment tribunal has held that the majority of lead claimants working in retail roles at Asda supermarkets carried out work of equal value to their employer’s distribution centre workers, for the purposes of section 65 of the Equality Act 2010. At a final equal value hearing, the tribunal compared the jobs of 14 women lead claimants in retail roles with 17 workers in distribution centre roles. It found that 11 of the lead claimants, including checkout operators and shop floor assistants, carried out roles of equal value to at least some of the distribution centre roles and that one claimant, who was a section leader, was in a role equal to all of them. However, the tribunal held that the roles of two of the lead claimants, a personal shopper and a shop-floor assistant for edible groceries, were not work of equal value to any of the distribution centre roles.
The long-running claims commenced in 2014 and cover the period from August 2008 and June 2014. In March 2021, the Supreme Court upheld the decisions of the tribunal, the EAT and the Court of Appeal that the retail roles could be compared with the distribution centre roles for equal pay purposes. Similar equal pay claims have been brought against Morrisons, Tesco, Sainsbury’s, Co-op and Next.
It is understood that an appeal is being considered in respect of the tribunal’s findings on the personal shopper and edible groceries roles, as the decision could adversely affect around 11,000 of the 60,000 claimants. Subject to any appeal, the next stage will be for the tribunal to determine whether the reason for the difference in pay between the retail and distribution workers was based on sex. It has been reported that the workers could potentially receive backpay of around £1.2 billion, with individual claims amounting to around £20,000.
Unfair Dismissal: Tribunal erred by adopting substitution mindset in conduct case
In Metroline Travel Ltd v Taylor (debarred) [2025] EAT 4, the EAT has held that an employment tribunal’s finding that a bus driver, Mr Taylor, had been unfairly dismissed by his employer (Metroline Travel Ltd), after getting into a fight with another driver, was fundamentally flawed.
The tribunal found that there was no doubt about the physical altercation, which had been with another company’s driver over a depot parking bay, and that when the other driver had boarded Mr Taylor’s bus and tried to pull him off, Mr Taylor’s response had been disproportionate. Mr Taylor had also left his bus cab while on duty, contrary to Metroline’s policies. Despite this conduct, the tribunal found that the dismissal was substantively unfair, based on evidential issues with CCTV footage, flaws with the disciplinary process and the fact that, in another similar incident, a bus driver who had also been involved in a fight with a passenger had been reinstated.
The EAT found that the tribunal had erred by failing to apply the “range of reasonable responses” test at various stages of its inquiry. While the tribunal had reached a view that Metroline had established the reason for dismissal and that it genuinely believed that Mr Taylor’s actions constituted misconduct, it erred in its analysis of reasonableness, based on a substitution of its view for that of the employer, and its analysis of Metroline’s procedure.
In particular, there was no finding on whether it had been outside the range of reasonable responses for Metroline not to question another driver who had witnessed the incident in her rear-view mirror. The tribunal had also failed to consider the disciplinary process as a whole, merely stating its conclusion that the appeal process did not remedy any flaws in the earlier investigation process. Most obviously, the tribunal had fallen into the substitution mindset in its analysis of the other similar case. The tribunal had conducted a detailed analysis comparing the two incidents and expressing its view that the other incident was worse because Mr Taylor had not shown sustained aggression. This was contrary to Metroline’s position, which was that the two situations could be distinguished by Mr Taylor’s lack of remorse. The tribunal had failed to consider whether that view was within the range of reasonable responses.
The case was remitted to a fresh employment tribunal.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law General Update – February 2025
The Government has been busy this month, announcing plans to reform the apprenticeship system, issuing new immigration guidance for Right To Work checks and changes to eVisas, and publishing its strategic plan for Anti-Slavery. Meanwhile, the Low Pay Commission has produced new policy recommendations for the national minimum wage and ACAS has produced new advice intended to raise awareness of neurodiversity at work.
- Job Skills: Changes to apprenticeships in England and Scotland
- Immigration: Home Office updates Employer’s guide to right to work checks
- Modern Slavery: Anti-Slavery Commissioner publishes strategic plan for 2024 to 2026
- NMW: Low Pay Commission policy recommendations for National minimum wage
- ACAS: New advice published to raise awareness of neurodiversity at work
Job Skills: Changes to apprenticeships in England and Scotland
The government has announced plans to reform the apprenticeship system, aiming to increase the number of apprentices by up to 10,000 per year. The changes, which include shorter and more flexible apprenticeships, are designed to give employers more control over English and maths requirements, allowing them to decide whether adult learners need to complete a level two English and maths qualification to pass their apprenticeship.
The changes, which will come into effect immediately for English and maths requirements and from August 2025 for the minimum length of an apprenticeship, will enable more learners to qualify in high-demand sectors such as healthcare, social care and construction. The minimum duration of an apprenticeship will be reduced from 12 to eight months.
The government believes that these reforms will help to drive economic growth, meet government targets, and break the link between background and success. Employers, including the Federation of Small Businesses, have welcomed the changes, stating that they will help to fill skills gaps faster.
The new leadership of Skills England, a nationwide body for skills, will play a key role in implementing these changes.
The changes have been widely welcomed by businesses, with many stating that they will help to widen access to apprenticeships and remove unnecessary barriers. The government’s plan for growth, which includes these reforms, aims to support apprentices throughout their journey and provide opportunities for all, regardless of background.
Meanwhile, the Scottish Government introduced the Tertiary Education and Training (Funding and Governance) (Scotland) Bill on 5 February 2025. If passed, it will see responsibility for providing national training programmes and apprenticeships move from Skills Development Scotland to the Scottish Further and Higher Education Funding Council (SFC). The Bill aims to simplify the funding landscape for post-school education and training in Scotland, allowing the Scottish ministers to make grants available to the SFC for apprenticeships and explaining how those grants can be used.
Immigration: Home Office updates Employer’s guide to right to work checks
As part of the digitisation of the immigration system, the Home Office now issues digital immigration statuses (eVisas) rather than physical biometric residence permits (BRPs). The Home Office has updated the Employer’s guide to right to work checks to confirm that, from 12 February 2025:
- Individuals who apply overseas and are granted permission to enter the UK for more than six months are issued with a vignette (sticker) in their passport which is valid for 90 calendar days to enable them to travel to the UK. Following their arrival, they will have ten calendar days or before their vignette expires (whichever is later) to create a UKVI account (previously they were required to collect a BRP) to access their eVisa to prove to their employer they have the right to work in the UK.
- If an individual needs to start work in the UK before creating a UKVI account and accessing their eVisa, their employer can conduct a manual right to work check using their 90-day vignette. However, before the expiry of the vignette, the employer must conduct a follow-up online right to work check to maintain their “statutory excuse” against civil penalties for illegal working. If, prior to the expiry of their vignette, the individual is unable to access their eVisa, or there is an error with it, they should contact UKVI. Their employer is not required to immediately terminate their employment if it believes that the individual has an ongoing right to work in the UK but it should contact the Employer Checking Service to try to obtain a Positive Verification notice to maintain its statutory excuse.
The list of acceptable documents for manual right to work checks has also been updated to confirm that:
- A clipped British or Irish passport (identified by the corners of certain pages in the passport being cut or removed) is a cancelled document and therefore not acceptable proof of right to work.
- A short or long birth certificate is considered acceptable when presented with official evidence of name and national insurance number issued by a government agency or a previous employer.
Modern Slavery: Anti-Slavery Commissioner publishes strategic plan for 2024 to 2026
On 11 February 2025, the Independent Anti-Slavery Commissioner (IASC) published its strategic plan for 2024 to 2026, as presented to Parliament. The post of IASC, appointed by but independent to the government, was filled in December 2023 after being vacant for nearly two years. This plan covers the current IASC’s three-year term.
The IASC’s plan outlines three overarching objectives, together with a list of actions that the IASC intends to take to achieve them. The objectives cover the prevention of modern slavery, the protection and identification of victims, and the prosecution of offenders and victim support. Managing supply chain risk and transparency forms part of the prevention objective. The IASC reiterates that the role of private sector businesses should include working with suppliers to identify and rectify forced labour issues within production and manufacturing or recruitment practices.
While the plan praises the government’s introduction of a central registry for businesses’ statements under the Modern Slavery Act 2015 (MSA) on steps taken to prevent slavery in their operations and supply chains, it highlights general concerns about statement quality and poor enforceability. It also notes that the UK (unlike other European countries) has not introduced mandatory human rights due diligence legislation. To address these concerns, the IASC plans include:
- Encouraging the government to strengthen its policy response to forced labour in domestic and global supply chains.
- Pushing for mandatory human rights due diligence legislation in the UK.
- Working with businesses to improve compliance with the MSA and promote best practice.
The IASC’s comments and proposals broadly align with recommendations made by a House of Lords Select Committee to revisit the former Conservative government’s draft Modern Slavery Bill (which would mandate the content of statements and introduce proportionate sanctions for non-compliance) and to introduce mandatory human rights supply chain due diligence. While the government’s response did not promise to implement these recommendations, it did indicate plans to review possible measures to increase transparency in global supply chains and promise to publish next steps in due course. It has also not ruled out introducing due diligence rules entirely, although it remains to be seen in which direction the UK will choose to go.
NMW: Low Pay Commission policy recommendations for National minimum wage
The Low Pay Commission (LPC) has published its 2024 annual report on the National Minimum Wage (NMW). The report sets out its previous recommendations to the government on increases to the NMW from 1 April 2025. It also sets out the following policy recommendations to the government:
- The issue of the entitlement of those working sleep-in shifts to the NMW should be addressed in the planned Fair Pay Agreement with the social care sector. Workers on sleep-in shifts are not currently entitled to the NMW following the Supreme Court’s ruling in Royal Mencap Society v Tomlinson-Blake [2021] UKSC 8.
- The entitlement to, and enforcement of, the NMW for seafarers should be looked at more widely, including via full implementation of the Seafarers’ Wages Act 2023 (SWA 2023). The SWA 2023 came into force in part on 23 March 2023, with the remaining provisions coming into force on 1 December 2024. However, government amendments to the Employment Rights Bill, approved at Committee Stage on 14 and 16 January 2025, will amend the SWA 2023, strengthening the rights of seafarers in relation to wages and working conditions. This includes the power to make regulations for determining the NMW-equivalent hourly rate for non-qualifying seafarers.
ACAS: New advice published to raise awareness of neurodiversity at work
On 31 January 2024, ACAS published new advice on neurodiversity at work to help employers create inclusive organisations and raise awareness so that talking about neurodiversity is normalised.
The advice provides definitions of relevant terminology, but notes that the language around neurodiversity is constantly changing and it can be tricky to know what is appropriate. ACAS uses the term “neurodiverse” to describe the natural differences in how people’s brains behave and process information and “neurodivergent” to describe someone whose brain works differently to what is considered more typical. Common types of neurodivergence include ADHD, autism, dyslexia, dyspraxia, dyscalculia and Tourette’s syndrome.
Some neurodivergent people do not see themselves as disabled, but being neurodivergent may amount to a disability under the Equality Act 2010. The advice acknowledges that many employees will not disclose to their employer that they are neurodivergent and may mask their condition due to concerns about a negative reaction. Where an employer suspects that an employee is neurodivergent, ACAS advises that it should approach the situation sensitively, not ask directly about the employee’s condition and focus on any reasonable adjustments that might help to support them (whether or not they have a diagnosis for neurodivergence). Appropriate reasonable adjustments will vary as people often experience neurodivergence differently.
ACAS also gives practical advice on how to manage capability or conduct concerns for neurodivergent employees. Before using a formal procedure, an employer must first ensure that they have explored reasonable adjustments. For example, where an employee with ADHD is struggling to concentrate and is missing deadlines, an employer might provide noise-cancelling headphones or a quiet space to work. Where formal procedures are necessary and appropriate, an employer should ensure that such procedures incorporate reasonable adjustments for the neurodivergent employee (for example, setting out meeting records clearly for an autistic employee who finds disorganised information distracting).
Actively including neurodivergent employees at work is sometimes called “neuroinclusion“. ACAS recommends the following measures (among others) to create a neuroinclusive workplace:
- Review recruitment processes, where possible allowing applicants to see questions before the interview and consider alternatives to interviews.
- Train and support managers.
- Raise awareness of neurodiversity (for example, through mandatory training, awareness days and campaigns or staff networks).
- Have a neurodiversity policy stating the organisation’s overall commitment to neurodiversity inclusion and outlining available support.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
Back
The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – January 2025
A range of decisions from across the spectrum of employment jurisdiction this month as we take a look at some of the most recent cases. A tribunal determined that a consultant contracted through a service company was a worker, making deductions for employer NICs unlawful. The EAT overturned a re-engagement order for an unfairly dismissed employee due to errors in assessing contributory conduct and the issue of the employer’s lost trust. The EAT also found that a tribunal failed to address key issues in a race discrimination claim where an employee alleged her job re-evaluation requests were mishandled due to her ethnicity. And the Court of Appeal upheld that a tribunal erred in determining the timing of a discrimination claim where it was based on delayed knowledge of key facts.
- Workers: Consultant engaged by recruitment agency via service company was a worker
- Remedies: EAT declared tribunal erred in ordering re-engagement of employee
- List of Issues: Tribunal erred in failing to address race discrimination allegation not pleaded but included in list of issues
- Discrimination: Tribunal erred in determining claimant’s date of knowledge of claims
Workers: Consultant engaged by recruitment agency via service company was a worker
In Appiah v Tripod Partners Ltd ET/2302929/202, an employment tribunal has found that a consultant who contracted with a recruitment agency through a service company was a worker of the agency under the Employment Rights Act 1996 (ERA 1996).
Ms Appiah was an independent social worker. Tripod Partners Ltd, a social care recruitment agency, placed her on an assignment to the Home Office. The Home Office assessed Ms Appiah using HMRC’s CEST tool. It decided she fell inside IR35 and should therefore be taxed as an employee.
Ms Appiah had previously contracted with Tripod through an umbrella company. However, following the Home Office assessment, Tripod gave her the additional options of an arrangement within PAYE or of contracting via a service company. Tripod explained that there were “small differences” in these options. It also confirmed that if she opted for a service company, it would deduct income tax and employee national insurance contributions (NICs) from her hourly pay. She decided to contract via a service company.
Once the contract had been finalised, Tripod made deductions from Ms Appiah’s pay for income tax, employee NICs and employer NICs. Ms Appiah accepted that Tripod was entitled to make deductions for income tax and employee NICs. However, she brought a claim alleging that the deductions for employer NICs were unlawful under the ERA 1996. Tripod argued that Ms Appiah was not a worker, so could not bring a claim for unlawful deductions.
The tribunal noted that the relevant contract was between two limited companies. However, this was not determinative. The efficacy of statutory protections would be eroded if everyone working through a service company was excluded from the rights afforded by ERA 1996.
It was evident that Ms Appiah was a worker. She sent timesheets to Tripod, not invoices. The contract said she was not a worker, but this did not reflect the reality. She worked full-time on her assignment, performing services personally. There was no difference in substance between the contractual arrangements she had been offered; they were simply different ways in which her payment could be channelled to her. She was not in business on her own account and neither the Home Office nor Tripod were her client. There was no route by which the contractual arrangement could genuinely be said to be between two businesses.
The tribunal went on to uphold Ms Appiah’s claim for unlawful deductions from wages in respect of Tripod’s deductions for employer NICs.
Remedies: EAT declared tribunal erred in ordering re-engagement of employee
In British Council v Sellers [2025] EAT 1, the EAT has held that a tribunal erred in ordering the re-engagement of an employee who had been unfairly dismissed following an allegation of sexual misconduct.
Before ordering re-engagement, a tribunal must consider the employee’s wishes, whether it is practicable for the employer to comply with a re-engagement order and, where the employee caused or contributed to their dismissal, whether ordering re-engagement would be just (section 116(3), Employment Rights Act 1996).
In this case, the tribunal found that, while the relevant decision-taker genuinely believed the employee had committed the alleged misconduct, their belief was unreasonably derived from a flawed investigation which the appeal process had failed to rectify. Following this decision, but before the remedy hearing, the employer instructed an independent investigator to undertake a fresh investigation. The investigator concluded that the accuser had been truthful. The employer upheld its gross misconduct finding.
At the remedy hearing, the employer did not argue that the employee had caused or contributed to his dismissal. Instead, it argued that its genuine and rational concerns about his conduct made it impracticable to re-employ him. The tribunal considered itself bound to address the issue of contributory conduct and found that, on the balance of probabilities, the alleged sexual assault did not occur. It held that it was irrational for the employer to have concerns about the employee’s conduct based on the independent investigation which it considered to be flawed in several respects. The tribunal ordered re-engagement. The employer appealed.
The EAT held that the tribunal erred in determining whether the employee had committed the alleged misconduct. Section 116(3) does not mandate the tribunal to make a finding on contributory conduct. Only where the tribunal has made such a finding (at the liability stage or because it was raised on remedy) would it need to consider whether it would be just to order re-engagement.
The tribunal had also erred by losing sight of the fact that practicability had to be determined from the employer’s perspective. It had considered the reasonableness of the independent investigation when it should have considered whether re-engaging the employee was likely to be practicable in circumstances in which the employer had accepted the investigation’s finding that he had committed a sexual assault and considered that he could no longer be trusted. The re-engagement order was set aside.
List of Issues: Tribunal erred in failing to address race discrimination allegation not pleaded but included in list of issues
In Bogdan v The Cabinet Office: Government Digital Services [2024] EAT 177, the EAT has allowed an appeal where an employment tribunal either failed to address, or failed to give adequate reasons for rejecting, a direct race discrimination claim in which the claimant, Ms Bogdan, alleged that her requests to re-evaluate her job grade were not adequately addressed by her employer, and this was less favourable treatment because she is a Romany Gypsy.
Ms Bogdan was a litigant in person when she issued her claim. In the claim form, there was no hint of any suggestion that she had made several job re-evaluation requests or been subjected to race discrimination by having such requests ignored, mishandled or refused. However, an employment judge subsequently conducted case management, which resulted in a list of issues. This stated that the allegation of direct race discrimination included that, from the beginning of her employment, she had made several job re-evaluation requests to her line manager. The thrust of her case, as set out in the list of issues, was that her employer had failed to deal with those requests, which had left her job wrongly graded.
An employment tribunal dismissed all of Ms Bogdan’s claims. She appealed on the basis that the tribunal failed to adequately deal with her direct race discrimination claim, as there was material evidence to which no reference was made and about which no adequate reasons appeared in the judgment.
The EAT allowed part of the appeal relating to the issues contained in the list of issues concerning her repeated job re-evaluation requests. It concluded that the list of issues effectively operated as substantial amendments to the originally pleaded claims in a way that neither Ms Bogdan’s employer nor the employment tribunal had fully appreciated. Despite the fact that her case, as presented at the tribunal, was not her pleaded case, the EAT concluded that the issues contained in the list of issues were squarely before the tribunal, yet it had fundamentally omitted to deal with them. It was therefore not apparent from its reasoning why she was not successful on those issues. This was a serious procedural irregularity, and the EAT remitted those issues to a new tribunal.
The case is a reminder of the importance of the parties and the tribunal being alive to the issues contained in the list of issues and ensuring that these are adequately dealt with in the reasons contained in the tribunal’s judgment.
Discrimination: Tribunal erred in determining claimant’s date of knowledge of claims
In HSBC Bank plc v Chavalier-Firescu [2024] EWCA Civ 155, the Court of Appeal has upheld the EAT’s decision that a tribunal erred in determining the date on which a claimant had sufficient knowledge to bring her discrimination claims.
In July 2018, the claimant learned that her application to join HSBC Bank plc had been unsuccessful and that someone from her previous employer, Barclays, had given her a bad reference. She had ongoing sex discrimination proceedings against Barclays at that time, but only suspected that this was the reason for the bad reference. However, in August and September 2020, information disclosed following her data subject access request led the claimant to believe that she had been considered a very strong candidate by HSBC, but that a senior manager, on learning of her sex discrimination claim against Barclays, had provided negative feedback to her interviewer, leading to HSBC’s decision not to hire her.
The claimant presented claims against HSBC in November 2020 and May 2021. A tribunal struck out the claims, holding that they were presented out of time as the decision not to appoint her was made in July 2018, there was no continuing act, and it was not just and equitable to extend time.
The court held that the EAT had correctly found that the tribunal had erred in striking out the claims. It had failed to explain its reasoning that the claimant was fully aware of the elements of her claim in July 2018 or show that it had taken proper account of the fact that she had only learned information to support her claims in 2020.
Underhill LJ held that where, as in this case, a claimant seeks an extension of time on the basis that they were unaware of important facts material to the viability of their claim, it is necessary for the tribunal to consider the extent of their knowledge, or grounds for suspicion, at the relevant time to assess what justice and equity require. Following Barnes v Metropolitan Police Commissioner UKEAT/0474/05, it will also be relevant to consider whether they should have known or suspected and, if they did, whether it was nevertheless reasonable for them to delay issuing proceedings. The claims were remitted to a different tribunal to consider whether it would be just and equitable to extend time.
Further Information
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
Back
The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law General Update – January 2025
This article summarises the main developments that will affect employment law in 2025 and beyond.
Employment Rights Bill and related consultations
- Bereavement leave
- Collective redundancies
- Dismissal and re-engagement (fire and rehire)
- Equality action plans and menopause support
- Fair Work Agency
- Family leave
- Flexible working
- Sexual harassment
- Statutory Sick Pay (SSP)
- Trade Unions
- Tribunal time limits
- Unfair dismissal
- Zero hours and “low hours” contracts
Other employment measures
- Draft Equality (Race and Disability) Bill
- Neonatal care leave and pay
- Right to disconnect
- Gender identity and gender critical beliefs
- Artificial intelligence (AI) in the workplace
- Immigration
Employment Rights Bill and related consultations
Prior to its success in the general election that took place on 4 July 2024, the Labour Party proposed wide-ranging and fundamental reform of employment law. It promised that several of its reforms would be contained in an Employment Rights Bill (ERB), which was introduced on 10 October 2024.
Together with the draft ERB, on 10 October 2024, the government published a policy paper, Next Steps to Make Work Pay (Next Steps paper), which set out the steps the government intends to take following the publication of the ERB. It confirms that further detail on many of the policies contained in the ERB will be provided through partnership with business, workers and trade unions, regulations, and in some cases codes of practice, after the ERB has received Royal Assent, which is expected to be in 2025.
The ERB makes provision for wide-ranging changes to be made to employment law, including in relation to unfair dismissal, fire and rehire, collective redundancies, zero hours and low hours contracts, trade unions and industrial action, sexual harassment and third-party harassment, statutory sick pay (SSP), flexible working and family leave. In October 2024, the government published four consultations as part of its first phase of consulting relevant stakeholders. Further consultations are expected in 2025, which will deal with matters to be included in supporting regulations.
Bereavement leave
The existing right to two weeks’ parental bereavement leave following the death of a child under 18 or a stillbirth will be extended to be an entitlement to more general “bereavement leave”, which will apply to the loss of a wider group of persons (clause 14, ERB). Like the current provision for parental bereavement leave, bereavement leave will be a day-one right. Regulations will specify the relationships with a person who has died that will qualify an employee to take bereavement leave, and the government will consult on the details to be set out in secondary legislation.
Collective redundancies
The ERB strengthens redundancy rights and protections by removing the “at one establishment” test for collective redundancies, meaning that the threshold of 20 or more redundancies will be met when that number is impacted across the entire business, rather than at one site. This will increase the obligations on multi-site employers to collectively consult and will require them to keep rolling records of redundancies proposed across their multiple sites. In addition, the government is consulting about raising the current level of the protective award from 90 to 180 days’ pay, or to an uncapped amount and allowing employees to claim interim relief where they have a claim for a protective award or a claim for unfair dismissal in a fire and rehire scenario. During 2025, the government also plans to consult on increasing the minimum collective consultation period when an employer is proposing to dismiss 100 or more employees from 45 to 90 days.
Dismissal and re-engagement (fire and rehire)
The practice of fire and rehire has received widespread negative press coverage in recent years following a number of high-profile cases. These include the dismissal of almost 800 employees by P&O Ferries in 2022, to be replaced by lower-paid agency staff, and also a case where Tesco (unsuccessfully) sought to use the practice to overturn preferential pay rates it had agreed on a “permanent” basis with staff who agreed to relocate.
The ERB would restrict the ability of an employer to use dismissal and re-engagement (known as “fire and rehire”) as a lawful means of changing an employee’s contractual terms, save where there is genuinely no alternative, due to financial difficulties which threaten the employer’s ability to carry on business as a going concern. It does this by making any dismissal automatically unfair where the reason for dismissal is that the employee did not agree to the employer’s attempt to vary their terms and conditions, or because they intended to employ another person to carry out substantially the same role. On 21 October 2024, the government published a consultation on strengthening the remedies against abuse of the fire and rehire and collective consultation rules (see above). The consultation closed on 2 December 2024.
It is not clear what the government’s intentions are with regard to the Statutory Code of Practice on Dismissal and Re-engagement which was introduced under the previous Conservative government but only came into force on 18 July 2024. Despite its previous strong criticisms of the Code as being “inadequate”, it remains in force for now. It is possible that the government still intends to replace the Code with another one containing more stringent obligations on employers, as envisaged in the Plan to Make Work Pay, although any new Code of Practice would need to be consulted on before it could receive parliamentary approval.
Equality action plans and menopause support
Future regulations made under clause 26 of the ERB will require employers with 250 employees or more to develop and publish equality action plans showing what steps they are taking in relation to prescribed matters related to gender equality and to publish prescribed information relating to their plans.
Matters relating to gender equality will be those concerning the advancement of equality between male and female employees and will include addressing the gender pay gap and supporting employees going through the menopause. In November 2024, proposed amendments to the ERB were published which will be considered by the Public Bill Committee. An amendment proposed by the government would require employers to include an explanation in their equality action plans on how they are supporting employees with menstrual problems and menstrual disorders.
The government will consult the Equalities and Human Rights Commission (EHRC) on the content of the regulations before they are published.
Fair Work Agency
The ERB contains provisions permitting the Secretary of State to delegate their labour market enforcement functions to a public authority and to appoint enforcement officers. The Next Steps paper confirms that this will be the new Fair Work Agency (FWA), which will bring together the existing enforcement functions of HMRC (in relation to the national minimum wage (NMW)), the Employment Agency Standards Inspectorate (EASI) and the Gangmasters and Labour Abuse Authority (GLAA). The introduction of a single enforcement body has long been on the cards and was one of the government’s key manifesto pledges. However, whether the FWA succeeds in improving enforcement is likely to depend on the level of financial resources it is allocated, which is not yet clear. It is not yet known when the FWA will be established, although it is likely to be a number of years before it is fully operational.
Family leave
Paternity leave and unpaid parental leave will become a day-one right for eligible employees. The government also stated in the Next Steps paper that it intends to make it unlawful to dismiss employees who have been pregnant within six months of their return to work, except in specific circumstances. Regulations are awaited to define what these specific circumstances will be. The government also stated in the Plan to Make Work Pay that it would conduct a review of the current parental leave system during the first year of the Labour government, so this is expected by July 2025.
Flexible working
The existing day-one right to request flexible working under Part VIIIA of the ERA 1996 (sections 80F to 80I) (as amended) together with the Flexible Working Regulations 2014 (SI 2014/1398) (Flexible Working Regulations) (as amended) will remain, but the ERB will introduce a reasonableness test into the regime, providing that employers will only be able to rely on one of the statutory reasons to refuse a request for flexible working where it is “reasonable for the employer to refuse the application on that ground or those grounds”. In addition, employers will be required to state and explain what the ground for any refusal is and why the refusal is considered reasonable. The Next Steps paper confirmed that there will be a consultation to develop the detail of the approach to be taken on flexible working.
Sexual harassment
The ERB will amend section 40A of the EqA 2010 to require employers to take “all reasonable steps” to prevent sexual harassment, reflecting the wording originally contained in the Worker Protection Bill. Currently, employers are required to take reasonable steps to prevent sexual harassment of their employees during the course of their employment under the Worker Protection (Amendment of Equality Act 2010) Act 2023, which came into force on 26 October 2024. Employers will also be under a duty to take “all reasonable steps” to prevent third-party sexual harassment, and to prevent third-party harassment in relation to the other relevant protected characteristics.
In addition, the ERB will amend the whistleblowing provisions of the ERA 1996 to make it clear that reporting sexual harassment will amount to a qualifying disclosure.
Statutory Sick Pay (SSP)
The ERB provides employees with the right to SSP from the first sick day rather than from the fourth day and removes the requirement for the employee’s earnings to be not less than the lower earnings limit to be eligible for SSP.
On 21 October 2024, the government published a consultation on SSP. The consultation, which closed on 4 December 2024, sought views on what the percentage of average weekly earnings should be for the purposes of calculating the rate of SSP for some low-earning employees.
Trade unions
The ERB will repeal the Strikes (Minimum Service Levels) Act 2023. While nearly all of the restrictions placed on industrial action and picketing by the Trade Union Act 2016 will be removed, the time-limited mandate for industrial action following a ballot will remain. The ERB will introduce the right to a statement of trade union rights and the right for trade unions to access workplaces, it will simplify the rules on trade union recognition, introduce protection against detriment for taking industrial action and increase protection against dismissal for taking industrial action. These are summarised below.
Right to a statement of trade union rights
The Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA 1992) will be amended to require employers to give workers a written statement advising that they have the right to join a trade union at the same time as providing the worker’s section 1 statement and at other prescribed times.
Right of trade unions to access workplaces
Unrecognised unions will be provided with the opportunity to recruit and organise within a workplace with the aim of gaining recognition. Trade unions and employers will be able to enter “access agreements” providing union officials with access to the employer’s workplace for the purposes of meeting, representing, recruiting or organising workers, or facilitating collective bargaining (but expressly not to organise industrial action). The union may apply to the Central Arbitration Committee (CAC) to determine workplace access if the employer fails to respond to its request for an access agreement. Either party may make an application where negotiations are unsuccessful.
Simplifying statutory trade union recognition
The statutory scheme for trade union recognition set out in Schedule A1 to TULRCA 1992 will be amended to:
- Enable the 10% membership threshold for the CAC to accept a trade union recognition application (and at other stages of the recognition scheme) to be reduced to between 2% and 10%.
- Remove the requirement at the application stage (and at other stages of the recognition scheme) for a union to demonstrate that there is likely to be majority support for trade union recognition.
- Remove the 40% support threshold from recognition ballots.
Protection against detriment for taking industrial action
TULRCA 1992 will be amended to provide workers with the right not to be subjected to detriment of a prescribed description by any act (or any deliberate failure to act) by their employer, if the act (or failure) takes place for the sole or main purpose of preventing or deterring the worker from taking protected industrial action, or penalising the worker for doing so.
Dismissal for taking industrial action
TULRCA 1992 will be amended to provided that for the full duration of an official, lawful strike and after that strike has concluded, an employee will be automatically unfairly dismissed where the reason (or, if more than one, the principal reason) for the dismissal is that the employee took such protected industrial action.
Consultation on further proposals
The government’s consultation, Making Work Pay: creating a modern framework for industrial relations, which closed on 2 December 2024, sought views on strengthening provisions to prevent unfair practices during trade union recognition, simplifying industrial action ballots, reducing notice of industrial action, extending the permitted duration of industrial action, updating the law on repudiation of industrial action and on prior call, and on enforcement of the trade union right to access workplaces.
Tribunal time limits
In a set of amendments to the ERB published in November 2024, the government confirmed that it would extend the time limits for bringing all tribunal claims from three to six months. It is not yet clear when this measure will take effect.
Unfair dismissal
Under the ERB, the right to bring a claim for unfair dismissal will become a day-one right for employees, subject to a new modified “light-touch” dismissal procedure applicable in most cases during an initial period of employment, which will be set by regulations but must be between three and nine months. It removes the two-year qualifying period for ordinary unfair dismissal protection by repealing section 108 of the Employment Rights Act 1996 (ERA 1996). Much of the detail will be contained in regulations and is as yet unknown, but this will represent a hugely significant change in the unfair dismissal landscape. To allow for full consultation and a substantial period for employers to prepare and adapt, the unfair dismissal reforms will take effect no sooner than autumn 2026.
In November 2024, proposed amendments to the ERB were published which are being considered by the Public Bill Committee. A government amendment will allow the Secretary of State to specify a cap on the compensatory award for employees unfairly dismissed during the initial period of employment provided for in the ERB.
Zero hours and “low hours” contracts
Employee representative bodies and trade unions have long condemned the use of zero hours contracts as a means of abusing vulnerable, low-income workers, and providing no job security, rights or guaranteed income. There is very limited protection for workers on such contracts. The ERB will introduce a duty on employers to offer a guaranteed hours contract that reflects the hours qualifying workers regularly work over a reference period (to be specified in regulations, but the government suggested in the Next Steps paper that in its view it should be 12 weeks). The ERB also places a duty on employers to provide reasonable notice of shifts, with workers being entitled to compensation if their shift is cancelled, moved or curtailed at short notice.
On 21 October 2024, the government published a consultation on the application of the zero hours contracts provisions to agency workers. The consultation, which closed on 2 December 2024, explored who should be responsible for offering guaranteed hours to eligible workers: the agency or the hirer. The government notes that a difficulty of making agencies responsible is that they have little or no control, since the demand for hours is largely dictated by hirer. Hirers would, therefore, be in a better position to forecast and manage the flow of work. However, requiring hirers to offer guaranteed hours might effectively make them the agency worker’s employer.
In November 2024, proposed amendments to the ERB were published which are being considered by the Public Bill Committee. Substantial government amendments were put forward in relation to zero hours and “low hours” contracts, including new requirements for employers to take reasonable steps to ensure that workers are given specified information in relation to their rights to guaranteed hours during an “initial information period” and to give workers a notice where they consider an exception to the duty to make a guaranteed hours offer applies, or where a guaranteed hours offer that has been made is treated as having been withdrawn.
Other employment measures
Draft Equality (Race and Disability) Bill
A draft Equality (Race and Disability) Bill (Race and Disability Bill) was announced in the King’s Speech 2024, to be led by the Government Equalities Office (GEO). It will be published in draft form for consultation and deliver Labour’s manifesto commitment to “enshrine the full right to equal pay in law” for ethnic minorities and disabled people. There is expected to be significant consultation on the draft Race and Disability Bill and so it is anticipated that it will progress more slowly than the ERB.
The Race and Disability Bill will tackle two main issues:
- Enshrine in law the full right to equal pay for ethnic minorities and disabled people. This will make it easier for them to bring unequal pay claims, given the existing barriers when bringing pay discrimination claims on the grounds of ethnicity or disability.
- Introduce mandatory ethnicity and disability pay reporting for employers with 250 or more employees. This will help to close the ethnicity and disability pay gaps, enabling employers to constructively consider why they exist and how to tackle them.
The Next steps paper also states that the government will create a new regulatory enforcement unit for equal pay.
Neonatal care leave and pay
The Neonatal Care (Leave and Pay) Act 2023 received Royal Assent in May 2023 and was expected to come into force in April 2025 under the previous Conservative government. The government has confirmed this will come into effect on 6 April 2025. HMRC has published a policy paper on the tax treatment of statutory Neonatal Care Pay (see HMRC: Income Tax: tax treatment of Statutory Neonatal Care Pay). The Act will introduce statutory neonatal leave and pay for up to 12 weeks for parents of babies requiring neonatal care, which must be taken within 68 weeks of birth.
Right to disconnect
The Plan to Make Work Pay stated that a new “right to switch off” would be introduced, providing workers with the right to disconnect from work outside of working hours and not be contacted by their employer. This would follow similar models to those that are already in place in Ireland and Belgium, giving workers and employers the opportunity to have constructive conversations and work together on bespoke workplace policies or contractual terms that benefit both parties.
There is nothing on this new right in the ERB, and in the Next steps paper, the government confirmed that it would take forward the right to switch off through a statutory Code of Practice. It is expected that a consultation on the new code of practice will be issued in 2025.
Gender identity and gender critical beliefs
Gender identity is a highly charged issue with polarised views about, on the one hand, a transgender person’s right to have their identity recognised, and on the other hand, so-called “gender critical beliefs” that a person’s sex is an immutable biological fact and that someone’s gender is different from their sex.
Recent case law has recognised gender critical beliefs as being capable of protection under the Equality Act 2010 (EqA 2010) as a philosophical belief (Bailey v Stonewall and others ET/2202172/2020). This provides scope for conflict with other protected characteristics under the EqA 2010, including the protected characteristic of gender reassignment (Fischer v London United Busways Ltd ET/2300846/2021), and poses a challenge for employers who are responsible for preventing discrimination and harassment in the workplace. In For Women Scotland Ltd v Scottish Ministers, the Inner House of the Court of Session confirmed that the definition of “woman” in section 212(1) of the Equality Act 2010 includes trans women with a gender recognition certificate. The case has been appealed and was heard by the Supreme Court on 26 and 27 November 2024.
In May 2024, the Minister for Women and Equalities issued a “call for input” seeking examples of policies or guidance issued by public bodies, or those that advise public and private organisations, which might wrongly suggest that people without a gender recognition certificate (GRC) have a legal right to access single-sex spaces and services according to their self-identified gender. The call for input on incorrect guidance on single-sex spaces closed on 26 June 2024.
Artificial intelligence (AI) in the workplace
Modern workplaces are increasingly receptive to and reliant on tools powered by artificial intelligence (AI) such as machine learning, GenAI and automated decision-making to perform certain human resources and employee management functions. In addition, the development of GenAI applications, which can be used to perform a variety of work-related tasks, means that AI is more accessible to the workforce than in the past.
AI reform
In terms of reform in this area, the government’s Next Steps paper, promised that a consultation would be issued on how to implement measures on surveillance technologies and negotiations with trade unions and staff representatives.
Prior to this, the King’s speech, which was delivered in July 2024, announced that the government:
“… will seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models”.
Labour’s manifesto (Labour: Change), published in June 2024, promised that Labour would create a new Regulatory Innovation Office, bringing together existing functions across government, to help regulators update regulation and to co-ordinate issues that span different sectors, as it considers that regulators are currently ill-equipped to deal with the dramatic development of new technologies. It also promised to ensure the safe development and use of AI models by introducing binding regulation on the companies developing the most powerful AI models.
Labour’s Plan to Make Work Pay, noted that new technologies such as AI have the potential for positive change, including boosting wages, improving productivity and empowering workers. However, given the risks posed, Labour’s approach will be to protect good jobs and ensure good future jobs. It plans to put in place appropriate rights and protections to keep pace with technological change, while safeguarding against discrimination. At a minimum, Labour stated that it will ensure that proposals by employers to introduce surveillance technologies will be subject to consultation and negotiation, with a view to reaching agreement with trade unions or elected staff representatives. This would not override the provisions of any collective agreement relating to surveillance.
Labour’s New Deal green paper, which was first published in September 2021, had previously stated that proposals by an employer to introduce surveillance technologies would be subject to consultation and agreement by trade unions or elected staff representatives, although it was subsequently reported that this new “right” could be implemented by way of best practice advice or secondary legislation, in a perceived watering down of the original pledge.
TUC AI taskforce
Labour has been involved with the TUC’s AI taskforce, which in April 2024 published its draft Artificial Intelligence (Employment and Regulation) Bill, setting out recommended regulation of the use of AI in the workplace.
EU position
The EU is taking a more interventionist approach than the UK. A new Regulation, the EU AI Act, was formally adopted by the Council of the EU on 21 May 2024. The EU AI Act applies to public and private actors inside and outside the EU if the AI system affects individuals in the EU, and categorises AI systems into risk levels.
The Platform Workers Directive entered into force on 1 December 2024. Member states will have two years to incorporate the provisions of the Directive into their national legislation. The Directive provides new rights aimed at promoting transparency, fairness and accountability in algorithmic management used in platform work.
International convention on AI
Since coming to power, on 5 September 2024, the Labour government signed the new international treaty, the Council of Europe’s Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law. The AI treaty has also been signed by the European Commission.
Managing AI risk
Due to the increasing use of AI in the workplace, there is a greater need to assess and manage the associated risks. In March and November 2024, new guidance was published by the government and the ICO specifically aimed at AI use in the HR and recruitment sectors. There are several actions that an employer can take to mitigate the risks, such as undertaking risk assessments and carrying out due diligence with suppliers of AI systems.
Immigration
From 31 December 2024, the sponsor licence guidance was updated to prohibit Skilled Worker sponsors from passing on the cost of the sponsor licence fee or associated administrative costs or the Certificate of Sponsorship (CoS) fee (for CoS assigned on or after 31 December 2024).
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Further Information
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
Back
The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – December 2024
In our last update of the year we bring you technical tribunal processes about not including additional claims at tribunal, how to interpret the Equality Act in relation to the definition of “related to” and how to properly assess value in an assessment of injury to feelings.
- Tribunals: Employment tribunal entitled to refuse amendment where claimant had made informed decision not to include additional claims in ET1
- Race Discrimination: Comments about employee’s accent could be “related to” race for harassment purposes, even if not motivated by race
- Sexual Discrimination: Tribunal’s assessment of injury to feelings in pregnancy discrimination case was “totally flawed”
Tribunals: Employment tribunal entitled to refuse amendment where claimant had made informed decision not to include additional claims in ET1
In Vassallo v Mizuho International plc and another [2024] EAT 170, the EAT held that an employment tribunal had been entitled to refuse a claimant’s application to amend her claim to add a whistleblowing complaint and an indirect sex discrimination complaint. The claimant had been legally represented and there was evidence she had taken a conscious decision not to include those claims in the original ET1.
The EAT has held that an employment tribunal had been entitled to refuse a claimant’s application to amend her claim to add whistleblowing claims and an indirect sex discrimination claim, because the tribunal had been entitled to conclude that she had been legally advised and had made an informed choice not to put them in her ET1.
The claimant’s ET1, which had been drafted by solicitors and submitted in March 2023, contained complaints of breach of contract and disability discrimination. Her solicitors then came off the record. In August 2023, the claimant, having instructed new solicitors, applied to amend her claim to add complaints of detriment and automatic unfair dismissal arising from protected disclosures (the whistleblowing claims) and indirect sex discrimination. The tribunal refused the application to amend, and later declined to reconsider that refusal. It found that no good reasons had been given as to why the claims were not included in the ET1, or for the delay in applying to amend. It noted that the claimant had been legally represented, and it was clear from email correspondence in the hearing bundle that her former solicitors had prepared an earlier draft ET1 containing the whistleblowing claims, but the final ET1 had not included them. The tribunal concluded an informed decision had been taken not to include those claims. The balance of injustice was also in favour of the respondents.
The claimant appealed, arguing that the tribunal had made findings of fact not supported by evidence and/or based on erroneous assumptions. She also argued that she had been badly advised and did not know she had a potential whistleblowing claim.
The EAT refused the appeal. The tribunal had heard evidence and submissions from both parties and had been entitled to conclude that careful thought had been given to the drafting of the ET1. The tribunal did not have to adopt an inquisitorial role in relation to the claimant’s state of knowledge; it was up to the claimant what evidence to introduce and whether to waive privilege in her former solicitors’ advice. Furthermore, it did not matter whether it was the claimant or her former solicitors who made the decision not to include the additional claims in the ET1, since the claimant bore ultimate responsibility for her solicitors’ actions.
Race Discrimination: Comments about employee’s accent could be “related to” race for harassment purposes, even if not motivated by race
In Carozzi v University of Hertfordshire and another [2024] EAT 169, the EAT held that an employment tribunal was wrong to find that comments about an employee’s accent were not harassment under the Equality Act 2010 because they were not motivated by her race. Such comments could nevertheless be “related to” race.
Ms Carozzi, a Brazilian national of Jewish ethnic origin, was employed by the University of Hertfordshire. She resigned before completing her probationary period (which had twice been extended). She brought a number of employment tribunal claims, including for race-related harassment and victimisation. Her harassment claim centred on comments that had been made about her accent. Her victimisation claim alleged that the University’s HR representative, Ms Withers, had refused to share with her the notes of a meeting, because she might then use them against the University in a race discrimination claim.
The tribunal dismissed her claims. It found that the comments about Ms Carozzi’s accent had not been motivated by her race. Rather, they had been about her intelligibility or comprehensibility when communicating.
As for the victimisation claim, the tribunal found that Ms Withers had decided against providing the meeting notes knowing that they might give Ms Carozzi “ammunition” for an employment tribunal claim. However, Ms Withers would have done the same with any other employee who had indicated an intention to make an employment tribunal claim, such as constructive dismissal, that was not based on the EqA 2010. In any event, it did not consider that the treatment could be detrimental, based on Khan and Derbyshire. Ms Carozzi appealed to the EAT.
The EAT allowed the appeal and remitted the harassment and victimisation claims to a fresh tribunal. The EAT observed that there are a number of components in a complaint of harassment, one of which is that the harassment must be “related to” a protected characteristic such as race. In its view, the tribunal had erred in its approach to that component.
The tribunal had stated that a mental element is required in a claim of harassment as much as in a claim of direct discrimination. However, the EAT held that this was wrong. The tribunal had placed considerable emphasis on the Court of Appeal’s decision in Nailard. The issue in that case had been whether the employer’s failure to investigate a grievance alleging sex discrimination was itself related to sex, and therefore an act of harassment. Nailard had not been about harassment in the more typical circumstances in which a complaint is made about words spoken to, or behaviour towards, an individual, and whether that conduct is related to a protected characteristic.
The EAT held that there is no requirement in a harassment claim for a “mental element” equivalent to that in a claim of direct discrimination. Treatment may be “related to” a protected characteristic where it is “because of” the protected characteristic, but that is not the only way conduct can be related to a protected characteristic. There may be circumstances in which harassment occurs where the protected characteristic did not motivate the harasser. The EAT gave the further example of a person who unknowingly uses a word that is offensive to people who have a relevant protected characteristic because it is historically linked to oppression of people with that characteristic. The fact that the person using the word did not know that it had such a connotation would not prevent the word being related to the protected characteristic. The use of the word could therefore potentially amount to harassment, applying the factors in section 26(4) of the EqA 2010, notably the perception of the complainant and whether it is reasonable for the conduct to have the effect of violating their dignity.
The EAT went on to observe that an accent may be an important part of a person’s national or ethnic identity. Comments about a person’s accent could be related to the protected characteristic of race. Criticism of such an accent could violate dignity. Obviously, that did not mean that any mention of a person’s accent will amount to harassment. The tribunal would have to consider whether the comment about an accent in a particular case was unwanted and related to race, as well as considering the other elements of section 26.
The EAT held that the tribunal had asked itself the wrong question to establish the reason for the refusal to supply the meeting notes. It should not have asked whether a person who might have brought a different type of claim (that did not amount to a protected act under the EqA 2010) would have been treated differently. The correct question for the employment tribunal was whether the decision not to provide the meeting notes was to a material degree influenced by the fact that Ms Carozzi had made or might make a complaint of unlawful discrimination.
It noted that the EqA 2010 definition of victimisation no longer requires a comparison to be made with the treatment of others. Regarding detriment, the House of Lords in Khan had held that an employer may take reasonable steps to protect its position in discrimination proceedings without this being considered unlawful victimisation. This had led the tribunal in the instant case to conclude that there had been no detriment. However, the tribunal in this case had not considered whether the parties thought that there were likely to be employment tribunal proceedings. Specifically, it had not considered whether an employee who brings a grievance, that might resolve the issue without the need for tribunal proceedings, might reasonably consider themselves disadvantaged by not being provided with the notes of a meeting. Accordingly, the EAT allowed the appeal on this point.
This case confirms that the “related to” test in the definition of harassment is wider than the “because of” test (sometimes referred to in case law as the “reason why” test) that applies to direct discrimination. Conduct can be related to a protected characteristic either where it is motivated by the protected characteristic, or where, regardless of the conscious or unconscious motivations of the alleged harasser, there is objectively some relationship between the conduct or language used and a protected characteristic. Sexist jokes and racial epithets are obvious examples, but the unwitting use of, for example, homophobic, transphobic or ableist language may also, depending on the circumstances (particularly the reasonableness test), be capable of meeting the definition of harassment.
Sexual Discrimination: Tribunal’s assessment of injury to feelings in pregnancy discrimination case was “totally flawed”
In Shakil v Samsons Limited [2024] EAT 192, the Claimant had only been working for the Respondent for about six months when she called in sick with ‘morning sickness’. In response and without notice, the Respondent reduced the Claimant’s hours of work criticising her capability and conduct. It then placed her at risk of redundancy, ultimately dismissing her, one month before she was due to start maternity leave.
Unsurprisingly, the Claimant took a claim of pregnancy discrimination to the tribunal who agreed with her. It was clear to the tribunal that the Respondent’s actions were due to the Claimant’s pregnancy-related illness and that the redundancy had been invented to deal with the Claimant’s pregnancy. In making the award, however, the tribunal simply made an injury to feelings award of £5,000 without any reference to ‘Vento bands ’ or where the Claimant’s injury fell within those bands. The Claimant appealed the award.
The EAT found this assessment to be “totally flawed” and allowed the appeal on the basis that the tribunal had failed to apply the Vento guidelines at all. In particular, the tribunal did not:
- identify the detailed evidence given by the Claimant in her witness statement about the injury to feeling she suffered as a result of the discrimination;
- make any findings of fact about the injury to feelings suffered;
- refer to Vento at all;
- refer to any statutory provision or authority relevant to assessing injury to feeling;
- identify the relevant bands for this claim in Presidential Guidance;
- state which band the injury to feelings fell within;
- explain why the award was set as it was within the band.
The EAT remitted the matter of remedy to a fresh tribunal rather than impose an alternative injury to feelings award itself.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – October 2024
This month our case digest is dominated by unfair dismissal and victimisation claims. The usual advice follows: if you’re going to dismiss someone, make sure you follow procedure and do it properly, a protected disclosure only gains its protection from being in the public interest (not that of the individual), even unions can get it wrong, and if you’re going to submit a large remedy claim have substantial medical evidence to back it up.
- Unfair Dismissal: Tribunal fails to consider fairness of final warning
- Unfair Dismissal: Claimant can’t rely on protected disclosures if not made in public interest
- Victimisation: Tribunal incorrectly applied burden of proof provisions and rejected protected act
- Victimisation: Substantial lack of medical evidence and self-diagnosis not enough for high value remedy claim
Unfair Dismissal: Tribunal fails to consider fairness of final warning
In Thomas v Brandpath UK Ltd [2024] EAT 150, the EAT allowed the claimant’s claim for an unfair dismissal. After an altercation between the claimant and a colleague, the claimant was signed-off sick for a significant period and the respondent conducted a disciplinary hearing in her absence. The claimant was dismissed by the respondent and the Employment Tribunal (ET) concluded that the claimant had acted “inappropriately”. The claimant argued that the ET: (i) did not consider and decide whether the issue of the final warning was manifestly unfair; (ii) there was a failure to apply the relevant guidelines; (iii) the decision was perverse; and (iv) that there was unfairness in proceeding with the disciplinary hearing, in the absence of the claimant, rather than delaying to allow for a possible improvement in her medical condition.
The EAT held that the ET erred in law is its assessment of the reason for dismissal, in failing to determine the question of whether the final warning was manifestly unfair, having identified that as one of the issues for determination. It failed to properly consider the question of whether the respondent had investigated that fell within the band of reasonable responses. There was no clear finding of what the claimant had done or said that was “inappropriate”. They upheld grounds (i) and (ii) of the appeal. It was therefore not necessary to go on to consider grounds (iii) and (iv).
Unfair Dismissal: Claimant can’t rely on protected disclosures if not made in public interest
In Dowding v The Character Group Plc [2024] EAT 153, the claimant in the employment tribunal was the finance director of the respondent, a company listed on the Alternative Investment Market. Following his dismissal he complained of unfair dismissal for the reason or principal reason that he had made protected disclosures, alternatively ordinary unfair dismissal. The tribunal concluded that the claimant had not, in law, made protected disclosures, because the disclosures relied upon were not believed by him to have been made in the public interest (alternatively, if they were, his belief was not reasonable). Nor in any event was the claimant dismissed by reason of those disclosures.
The tribunal found that this was a fair dismissal by reason of a breakdown in trust and confidence that had been caused by the claimant’s conduct. At a further costs hearing the tribunal awarded the respondent costs, in a capped amount, subject to detailed assessment on the indemnity basis. It rejected a costs application by the claimant himself. The respondent also successfully sought its costs in respect of the costs hearing, which it had limited to the maximum that could be summarily awarded, of £20,000.
The claimant’s appeal against the decision dismissing the ordinary unfair dismissal complaint was unsuccessful. An appeal against the costs decision succeeded in two respects. The EAT concluded that, under the Employment Tribunal Rules of Procedure 2013, the tribunal does have the power to direct that a detailed costs assessment be on the indemnity basis; but the tribunal had not shown whether, or if so, why, it had decided that such a direction was warranted in this case, applying the guidelines in Howman v Queen Elizabeth Hospital, UKEAT/0509/12/JOJ. In respect of the “costs of costs” award, the tribunal had not considered whether the sum of £20,000 was warranted having regard to the nature, gravity and effect of the conduct which gave rise to the award; or if it had considered that, it had not sufficiently explained its decision in that respect.
Victimisation: Tribunal incorrectly applied burden of proof provisions and rejected protected act
In Edwards v Unite the Union and Others [2024] EAT 151, the Employment Tribunal was found by the EAT to have erred in its approach to the burden of proof. The Claimant had been employed as an employment law solicitor for the RMT. He wished to pursue proceedings against the RMT. He was a member of the Unite the Union (“the Union”) and sought to obtain “industrial and legal representation” from the Union against the RMT in respect of employment and personal injury claims. The Union took advice in respect of his claims and represented him in some of them. The Claimant was dissatisfied with aspects of the decision making and service/representation provided to him by the Union. He asserted that the Union and some of its officers had discriminated against him and subjected him to victimisation. He brought a number of claims before an Employment Tribunal. The Tribunal rejected his claims and concluded that the burden of proof had not shifted to the Union in respect of the victimisation allegation, and determined that one email the Claimant sent was not a protected act for the purposes of the claims of victimisation. The Claimant appealed.
The appeal was allowed, concluding that the Tribunal had erred in its application of the burden of proof provisions in consideration of relevant authorities and using guidance on the approach to the burden of proof provisions. As to the second ground of appeal, in context and applying the correct legal principles, and on a fair reading of the relevant email, the Claimant had made an allegation of disability discrimination. The allegation was that the First Respondent had failed to adjust its processes and that as a result, the Claimant, a disabled person, suffered harm. This could be understood to be an allegation of disability discrimination.
Victimisation: Substantial lack of medical evidence and self-diagnosis not enough for high value remedy claim
In McInerney v Nottinghamshire Healthcare NHS Foundation Trust[2024] EAT 158, having been awarded compensation in respect of remedy for a successful claim of unfair constructive dismissal, the Employment Tribunal (ET) made a further reserved judgment in respect of the remedy for victimisation claim which amounted to £20,000 for injury to feelings, £10,000 for aggravated damages (which were not challenged) and £23,344.30 for loss of earnings, against which Dr McInerney appealed. The final schedule of loss submitted by the appellant put her losses at £2,114,140.90 gross. The EAT dismissed her appeal against the findings made in this further reserved judgment by the ET.
The appellant had been employed by the respondent NHS Trust as a Consultant Forensic Psychiatrist at a hospital until her retirement. The appellant brought two claims in the ET, alleging acts of victimisation that led to her resignation. Her victimisation claim was based on the respondent’s refusal to consider her application to work on a part-time basis as Forensic Psychiatrist in the respondent’s Forensic Gender Clinic and, specifically, refusing to allow her to apply for the role, not acknowledging or considering her subsequent application and not offering her the role. She contended that her mental health issues, allegedly caused by the victimisation, prevented her from working until the age of 75, as she had intended. The appellant succeeded in both complaints. The ET was highly critical of the actions of the respondent that resulted in the appellant’s resignation, concluding that the respondent had fundamentally breached the claimant’s contract of employment.
The ET found as fact that the appellant had not suffered a loss of confidence because of being victimised that prevented her from undertaking medico-legal work. Among other things, the appellant submitted that the ET failed to apply a percentage chance approach to the medico-legal loss or had otherwise failed to give adequate reasons as to its decision on that point. The EAT held that the ET did not err in law in failing to apply a percentage chance approach to the medico-legal loss. On a proper reading of the judgment, the ET found as a fact that the appellant had not suffered a fundamental loss of confidence that prevented her from carrying out medico-legal work. The ET had been entitled to consider the lack of significant supporting medical evidence to support the very substantial asserted losses (a single letter from a doctor – Consultant Psychiatrist in Psychotherapy, no longer practising) and that it was a significant omission. This is a very high value claim which primarily rests with the appellant’s financial losses she says arise as a result of her mental health issues cause by the victimisation by the respondent, and as a consequence, the ET consider medical evidence to be essential to enable proper consideration of the effect of the victimisation on the appellant’s mental health. She had also relied on her own evidence, as a Consultant Psychiatrist, but relying on self-diagnosis in such a high claim would in itself raise potential issues, not least being the cynical view that she would know what to say to support her own claim. Further, the reasons of the ET had been more than sufficient for the appellant to understand why she failed in that element of the claim for loss of earnings.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law General Update – October 2024
Big changes are afoot this month with the introduction of the new Labour government’s Employment Rights Bill, aiming to fix problems perceived by the Labour party during their long stint in opposition, such as addressing one-sided flexibility, supporting more family friendly rights and prioritising fairness, equality and wellbeing of workers, ensuring fair pay, modernising trade union legislation and improving enforcement of employment rights. Consultation over the Bill will start now and continue in 2025, with the aim to implement the changes in 2026. We also bring you updates on sexual harassment, proposed employment rights for parents of still-born children and those born prematurely, guidance on the new Tipping Act, and a change in equality office.
- Legislation: Government publishes Employment Rights Bill
- Protection at Work: The Worker Protection (Amendment of Equality Act 2010) Act 2023 to comes into force on 26 October 2024 and EHRC updates its harassment guidance and publishes eight-step guide for employers on preventing sexual harassment at work
- Parents: New private members’ bill on Still-Birth and leave for Neo-natal care
- Pay: New Tipping Act and supplementary Code of Practice comes into force – guidance available
- Equality: Office for Equality and Opportunity replaces the Equality Hub
Legislation: Government publishes Employment Rights Bill
Background: In September 2021, the Labour Party first introduced its plan for working people in its ‘A new deal for working people’, launched at the Labour Party Conference. The document underwent several iterations, with the final version, Labour’s Plan to make work pay: Delivering a new deal for working people (New Deal), published just prior to the release of the manifesto in June 2024. The Labour Manifesto reiterated a number of the promises set out in the New Deal document and stated that the New Deal would be implemented in full within the first 100 days of the Labour government. The King’s Speech on 17 July 2024 confirmed that Labour’s plans would be implemented through the Employment Rights Bill 2024 (Bill) and the Equality (Race and Disability) Bill 2024. The Employment Rights Bill 2024 was published on 10 October 2024.
When will the Bill come into force? Commencement regulations will be required to bring provisions into force, with the exception of provisions on trade unions and industrial action, which will come into force two months from the day on which the Act is passed, and the repeal of the Strikes (Minimum Service Levels) Act 2023 and related provisions, which will come into force on the date the Act is passed.
What does the Bill plan to do? The Bill implements a large number of the reforms promised in the Labour Party’s New Deal document. Alongside the Bill, the government has also published a policy document entitled Next Steps to Make Work Pay (Next Steps) and a set of explanatory notes. The document sets out the government’s plan generally as well as the next steps in implementation for many of the measures.
Laid out below is a summary of the current position, the changes promised prior to the Bill and the expected reforms in relation to the measures set out in the Bill.
Zero hours and ‘low hours’ contracts: Zero-hour contracts are contracts of employment which lack a minimum number of guaranteed working hours and which do not require a minimum commitment from the employee. This means the working hours of an individual are unpredictable and may vary wildly from week to week. Although, individuals on zero-hour contracts do have a number of statutory protections, these are based solely on employment status. At present there is no definition as to what ‘low hours’ means. This will be the subject of consultation.
In order to provide more security for individuals on zero-hour contracts, the Labour Party promised to:
- ban ‘exploitative’ zero hours contracts;
- ensure a right to a contract reflecting the number of hours regularly worked and is likely to be based on a 12-week reference period;
- ensure workers get reasonable notice of any shifts or working time changes, with proportionate compensation for cancelled or shortened shifts;
- introduce anti-avoidance measures; and
- end ‘one sided’ flexibility by ensuring all jobs provide a baseline level of security and predictability.
The Bill sets out a right to guaranteed hours where a worker regularly works more than those hours. The guaranteed hours are calculated according to a reference period, which is expected to be 12 weeks. Employers will be required to make an offer of guaranteed hours to workers at the start of employment and at the end of each reference period. Workers can also submit claims to the employment tribunal where an employer has failed to comply with their duty to offer guaranteed hours, or where that offer does not comply with the necessary requirements.
The Next Steps document states that the government intends to consult on the details and to ensure the Bill’s provisions on zero hours contracts are effectively and appropriately applied to agency workers.
Fire and re-hire: Currently, employers wishing to introduce changes to the terms and conditions of an employment contract have the option of terminating the contract (with the requisite notice) and offering immediate re-engagement to the affected employee on new terms. While in government, the Conservative party introduced a statutory Code of Practice on dismissal and re-engagement with guidance on engaging in meaningful consultation and exploring alternatives. However, the Labour Party have since committed to ending ‘fire and rehire’ practices entirely in addition to reforming the existing fire and rehire Code and introducing more effective remedies against abuse.
In place of the Code of Practice, clause 22 of the Bill inserts a new section 104I into the Employment Rights Act 1996, which makes a dismissal unfair where the reason for the dismissal is that:
- the employer sought to vary an employee’s contract and the employee did not agree, or
- the employer sought to employ another person or re-engage the employee under a varied contract to carry out substantially the same duties.
This will not apply where the employer shows that the reason for the variation was to eliminate, prevent or significantly reduce, or significantly mitigate the effect of, any financial difficulties which at the time of the dismissal were affecting, or were likely in the immediate future to affect, the employer’s ability to carry on the business as a going concern or otherwise to carry on the activities constituting the business, and in all the circumstances the employer could not reasonably have avoided the need to make the variation.
Unfair dismissal qualifying period: Under section 108(6) of the Employment Rights Act 1996 the right not to be unfairly dismissed generally only arises where the employee has been continuously employed for a period of at least two years; however the rule is subject to a number of statutory exceptions. The Labour Party has promised to remove the two-year qualifying period for unfair dismissal claims, making it a ‘day one’ right.
The Bill will repeal s.108 of the Employment Rights Act 1996 and remove the two-year qualifying period. However, there will be a new ‘initial period of employment’ (or ‘probationary period’) during which the employer can dismiss an employee for certain reasons, subject to following a specified procedure. The length of the initial period and the details of the procedure will be subject to consultation—see Probationary periods below.
Sick pay (SSP): SSP is currently available to employees who are deemed to have been too ill to undertake any work for a period of at least four consecutive days. Employees must also earn above the lower weekly earnings limit (currently at £123) in order to qualify for SSP. The Labour Manifesto laid out the Party’s commitment to removing the qualifying period for statutory sick pay making it also a ‘day one’ right and removing the lower earnings limit. The Bill reflects both these promises in clauses 8 and 9.
The government will consult on the percentage replacement rate for those earning below the current flat rate of SSP, before bringing it into force as an amendment to the Bill. Furthermore, the Next Steps document states that the new Fair Work Agency will be given responsibility for ensuring SSP enforcement.
Parental leave: Parents of a child (whether born to the parents or adopted) are entitled to take up to 18 weeks of unpaid leave to care for that child at any time before the child’s 18th birthday. Currently parents must have worked continuously for an employer for at least one year to qualify for parental leave. The Bill will make parental leave a ‘day one’ right.
Probationary periods: As noted above, the Bill introduces the concept of an ‘initial period of employment’ (or ‘probationary period’) where dismissals for specified reasons will not be considered unfair. The government has further committed in the Next Steps document to consulting on the length of that initial statutory probation period and to consult on how it interacts with ACAS’s Code of Practice on disciplinary and grievance procedures to ensure that ‘day one’ rights will not be affected by the statutory probation period.
Flexible working: The Employment Rights Act 1996 provides employees with a statutory right to request certain specified changes to their employment contract. However. employees must have had at least 26 weeks’ of continuous service in order to qualify for the right. Earlier legislative changes were made from 6 April 2024, including making the right to request a day one right. However, the grounds upon which an employer can reject a request remain broad.
The Bill introduces a reasonableness requirement into an employer’s decision not to grant flexible working requests, and requirement for the employer to explain to the employee why they consider it reasonable to refuse the request.
Protection for new mothers: Currently, dismissal on the grounds of pregnancy or maternity will be deemed to be an automatically unfair dismissal. This means that an employee dismissed under these circumstances does not require the two years of continuous employment ordinarily needed to bring a claim in the employment tribunal. A woman who takes ordinary maternity leave is also entitled to return to the ‘same job’ at the end of that leave unless that job is no longer available.
The Plan to make work pay also included a promise to strengthen these protections by making it unlawful, except in specified circumstances, to dismiss a woman who has had a baby for six months after she returns to work.
The Bill provides the Secretary of State with the power to make provision for regulations restricting dismissal of an individual during pregnancy or for a period after pregnancy.
Paternity leave: Currently an employee may take paternity leave to support a mother or adopter in taking care of a new child, subject to (among other things) having at least 26 weeks’ qualifying employment. Under the Bill, paternity leave will become a ‘day one’ right.
Bereavement leave: Employees are entitled to Parental bereavement leave (PBL) following the death of a child if they meet the requisite parental relationship conditions and comply with the notice requirements. PBL is a ‘day one’ right; however it is currently only available to employees. The Bill extends the right to take PBL to any ‘bereaved person’. PBL will no longer be limited to circumstances involving the death of a child. A bereaved person will be entitled to take leave for the death of any person as long as they meet the other relevant conditions set out in the regulations.
Equality action plans: Amendments to the Equality Act 2010 made by the Bill will require large employers (with 250 employees or more) to publish equality action plans showing the steps that the employer is taking in relation to their employees with regard to prescribed matters related to gender equality, and to publish prescribed information relating to the plan. These will need to cover addressing the gender pay gap and supporting employees going through the menopause.
Fair Work Agency: The Labour Party has committed to amalgamating the HMRC National Minimum Wage unit, the Employment Agency Standards Inspectorate and the Gangmasters Labour Abuse Authority into a single enforcement body known as the Fair Work Agency. The Bill establishes the Fair Work Agency which will be responsible for:
- minimum wage and statutory sick pay enforcement;
- the employment tribunal penalty scheme;
- labour exploitation and modern slavery; and
- enforcement of holiday pay policy (a new responsibility, which was not originally included in the New Deal document).
Fair pay agreements for social care workers: The Labour Party promised to consult on a new Fair Pay Agreement to create a New Deal for Social Care Workers. The Bill provides for the creation of an Adult Social Care Negotiating Body with a remit over remuneration, terms and conditions of employment and any matters specified by the Secretary of State, for social care workers. Agreements over remuneration which have been ratified by the Secretary of State must be paid in accordance with the agreement and any other term will have effect as a term of a worker’s contract. A consultation on how the Fair Pay Agreement should work is promised ‘soon’.
School support staff: The School Support Staff Negotiating Body, the pay body for school support staff, was abolished some time ago. The Labour Party stated that it would reinstate the Body, and task it with establishing a national terms and conditions handbook, training, career progression routes and fair pay rates for support staff to help to address the recruitment and retention crisis. The Bill re-establishes the School Support Staff Negotiating Body.
Trade unions: The Employment Rights Bill makes provision for changes to trade union law relating to:
- a worker’s right to a statement of trade union rights;
- a trade union’s right of access to a workplace;
- trade union recognition;
- members’ contributions to political funds, and public sector check-off arrangements;
- time off rights for trade union officials, learning representatives and union equality representatives; and
- blacklisting.
An employer will be required to give a worker a written statement that the worker has a right to join a trade union at the same time as the employer gives the worker a written statement of employment particulars. Secondary legislation will stipulate what information must be included in the statement, the form the statement must take and the manner in which the statement must be given.
The Employment Bill introduces a new framework for trade unions to request physical access to an employer’s workplace for the purposes of meeting, representing, recruiting or organising workers, and/or facilitating collecting bargaining. Access agreements are to be negotiated in the first instance between the employer and the trade union, with a referral to the Central Arbitration Committee provided for if agreement cannot be reached.
Thresholds required for a trade union to qualify for, and achieve, statutory recognition will be amended, with double thresholds removed where relevant and replaced by a simplified requirement for unions to demonstrate appropriate levels of support. In relation to individual contributions to a political fund of the trade union, the default position will be that individual members will be contributors to the political fund unless they specifically opt out (rather than the other way around, which is the current position.
Changes to the check-off arrangements for public sector workers introduced by s.15 of the Trade Union Act 2016 on 9 May 2024 are to be repealed.
Where an employer permits an employee or a learning representative to take time off for carrying out their duties under the Trade Union and Labour Relations (Consolidation) Act 1992 (ss.168 and 168A), it will also be expected, if requested, to provide reasonable accommodation and other facilities for carrying out those duties.
A new right for reasonable time off for union equality representatives is introduced to support duties related to promoting equality in the workplace.
Secondary legislation will be introduced to extend blacklisting protections; it will be unlawful not only to compile lists of trade union members etc, but also to use such lists for the purposes of discrimination in relation to recruitment or in relation to the treatment of workers, and/or to sell or supply such lists for those purposes.
Industrial action: Changes are proposed in relation to:
- balloting and notification requirements for lawful industrial action
- lawful picketing;
- detriment and dismissal for participating in lawful industrial action; and
- restrictions on those working in regulated services from participating in industrial action.
Ballot participation thresholds will be done away with and support thresholds for industrial action will be the majority of those voting in the ballot. Additional balloting thresholds for those engaged in public services will also be done away with. Information that must be included on the voting paper in a ballot is to be significantly reduced and simplified. Provision is made for electronic balloting to be introduced.
The period of notice to be given to an employer to notify it of industrial action is to be reduced from 14 days to seven days.
Lawful picketing will no longer be dependent on the union supervision requirements contained in s.220A of the Trade Union and Labour Relations (Consolidation) Act 1992, which is to be done away with.
A new right for workers to be protected from detriment for participating in protected industrial action, or to deter them from doing so, is to be introduced, and protection against dismissal for participating in protected industrial action is to be extended.
The Strikes (Minimum Service Levels) Act 2023 is to be repealed, and industrial action restrictions on workers working in services that have been designated ‘relevant’ services under the Act are accordingly lifted.
Further reform: In addition to the anticipated reforms announced in the Labour Party’s New Deal and Manifesto, the Bill includes some measures which had not previously been anticipated. Clauses 16–18 of the Bill contain new provisions on sexual harassment, expanding the duty to prevent sexual harassment set to come into force on 26 October 2024 under the Worker Protection (Amendment Of Equality Act 2010) Act 2023. The new sections introduce:
- liability for harassment by third parties;
- provision for disclosures about sexual harassment qualifying as a protected disclosure under S.43B of the Employment Rights Act 1996; and
- the addition of specified steps that an employer must take to demonstrate that they have taken reasonable steps in the prevention of sexual harassment for the purposes of the legislation.
The government will also consult on lifting the cap of the protective award if an employer is found to not have properly followed the statutory collective redundancy processes and on the role interim relief could play in protecting workers in these situations.
As stated above, the Next Steps document provides a general timeline on the implementation of the measures and reforms set out in the Bill. The majority of the measures in the Bill are set to be brought in through commencement legislation, and a number will go through a consultation process before their eventual implementation. According to the Next Steps document, the government expects to start consulting in 2025, although the government is ahead of itself in this regard and launched four consultations on 21 October 2024. The four consultations, which run until early December 2024, seek views of the Bill’s measures relating to a new right to guaranteed hours for zero or low hours workers, collective redundancy consultation and ‘fire and rehire’ practices, trade union legislation and statutory sick pay. This means that any substantive reforms are unlikely to take effect much before 2026. This also means the Bill is likely to see some amendment before all the measures fully come into force.
The Next Steps document also refers to a number of reforms not included in the Bill which the government is nevertheless committed to introducing. These are:
- a full review of the parental leave system;
- a review of the implementation of carer’s leave and an examination of the benefits of introducing paid carer’s leave;
- a consultation on workplace surveillance technologies;
- consultations on the creation and implementation of a single ‘worker’ status;
- a call for evidence on TUPE 2006 regulations and processes;
- a review of health and safety in the workplace aimed at modernising guidance and regulations;
- a joint consultation with ACAS on collective grievances;
- the introduction of a new National Procurement Policy Statement aimed at reforming the public procurement ahead of the commencement of the Procurement Act 2023 in February 2025; and
- an extension of the Freedom of Information Act 2000 to private companies that hold public contracts and publicly funded employers.
Protection at work: The Worker Protection (Amendment of Equality Act 2010) Act 2023 to comes into force on 26 October 2024 and EHRC updates its harassment guidance and publishes eight-step guide for employers on preventing sexual harassment at work
The Worker Protection (Amendment of Equality Act 2010) Act 2023 comes into force on 26 October 2024. The Act will:
- Introduce a duty on employers to take reasonable steps to prevent sexual harassment of their employees.
- Give employment tribunals the power to uplift discrimination compensation by up to 25% where an employer is found to have breached the duty to prevent sexual harassment.
At present it’s only a duty to take ‘reasonable steps’, the new Employment Rights Bill already includes a change to ‘all reasonable steps’ which no doubt will come into force in due course. The Employment Rights Bill will also re-introduce employer liability for third party harassment in relation to all relevant protected characteristics under the Equality Act (sex, sexual orientation, age, disability, etc.)
Sexual harassment occurs where both:
- A engages in unwanted conduct of a sexual nature.
- The conduct has the purpose or effect of either violating B’s dignity, or creating an intimidating, hostile, degrading, humiliating or offensive environment for B.
The EHRC has published an updated technical guidance for employers on the steps they can take to prevent sexual harassment in the workplace. The EHRC has also published an eight-step practical guide to assist with this preventative duty, including developing an effective anti-harassment policy, using a reporting system that allows workers to raise an issue either anonymously or in name, and regularly monitoring and evaluating the effectiveness of an employer’s actions.
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Parents: New private members’ bill on Still-Birth and leave for Neo-natal care
The Still-Birth (Definition) Bill (a Private Members’ Bill sponsored by Liberal Democrat peer, Baroness Benjamin) received its first reading in the House of Lords on 14 October 2024. The Bill would amend the definition of still-birth to apply from 20 weeks into a pregnancy, rather than from 24 weeks as currently is the case, including for the purposes of entitlement to maternity allowance under section 35 of the Social Security Contributions and Benefits Act 1992.
Currently under the Neonatal Care (Leave and Pay) Act 2023 (which received Royal Assent on 24 May 2023) employees with responsibility for children receiving neonatal care will be entitled to receive up to 12 weeks of paid leave per year. Regulations bringing into force its main provisions are awaited.
The latest edition of HMRC’s Employer Bulletin confirms that from 6 April 2025 HMRC will begin to administer statutory neonatal care pay (SNCP). The Bulletin informs employers that SNCP:
- is claimable in the first 28 days following the birth of a child after they have spent seven consecutive days in neonatal care
- can be paid for a maximum period of 12 weeks but will allow some flexibility dependent upon individual parental circumstances and other statutory payments to which they may be entitled.
Pay: New Tipping Act and supplementary Code of Practice comes into force – guidance available
On 1 October 2024, the Employment (Allocation of Tips) Act 2023 and statutory Code of Practice on fair and transparent distribution of tips came into force. Under the Act, employers must distribute tips in a ‘fair and transparent’ manner, passing all tips, gratuities, and service charges on to workers, without deductions. Failure to do so could result in employment tribunal claims by workers seeking to enforce their rights.
The Advisory, Conciliation and Arbitration Service (ACAS) has published guidance on tips and service charges in relation to the Act and supplementary Code of Practice which are both now in force. The guidance explains what the new law says, sharing tips fairly, and the obligation to have a written policy and to keep records. The guidance also covers which tips the law applies to, when tips must be paid, tronc systems and what happens if tips are not being paid correctly.
The DBT has also published non-statutory guidance for employers for employers on distributing tips fairly. The guidance is aimed at helping employers apply the statutory code of practice on fair and transparent distribution of tips, and applies to all sectors and businesses where tips are received. The guidance is not part of the statutory Code of Practice, legal advice or an exhaustive account of what is acceptable under either the Employment Rights Act 1996 or the statutory Code of Practice.
Equality: Office for Equality and Opportunity replaces the Equality Hub
The Equality Hub has been replaced by the Office for Equality and Opportunity. The Office for Equality and Opportunity will cover the overall framework of equality legislation in the UK, including disability policy, ethnic disparities, gender equality and LGBT+ rights.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Navigating the New Landscape: Key Employment Law Changes of 2024
The start of 2024 has been a busy time for new employment Regulations and Acts coming into force, the majority of which relate to further extending family friendly rights within the workplace.
We have set out below a summary of the changes all of which have now come into force. Employers should therefore undertake a review of their corresponding polices as soon as possible to ensure they include the additional rights and responsibilities set out below.
- The Paternity Leave (Amendments) Regulations 2024.
These Regulations came into force on 8 March 2024 and make the following changes:
- employees can take their two-week paternity leave entitlement as two separate one-week blocks (rather than having to take just one week in total or two consecutive weeks).
- employees can take paternity leave at any time in the 52 weeks after birth (rather than having to take leave in the 56 days following birth).
- employees only need to give 28 days’ notice of their intention to take paternity leave (reduced from the previous position that required notice to be given 15 weeks before the Expected Week of Childbirth (EWC)).
The Regulations are stated to apply in all cases where the EWC is on, or after, 6 April 2024.
- The Maternity Leave, Adoption Leave and Shared Parental Leave (Amendment) Regulations 2024.
These regulations came into force on 6 April 2024 and extend the period of special protection from redundancy for employees who are on maternity leave, adoption leave or those on shared parental leave. They bring the Protection from Redundancy (Pregnancy and Family Leave) Act 2023 into operation.
Previously, regulation 10 of the Maternity and Parental Leave Regulations 1999 stated that parents on maternity leave, adoption leave or shared parental leave should be offered first refusal of any suitable alternative employment which may be available in a redundancy situation. This protection is, under the Act, extended as follows:
- For maternity – the protected period now covers pregnancy, alongside 18 months from the first day of the estimated week of childbirth. The protected period can be changed to cover 18 months from the exact date of birth if the employee gives the employer notice of this date prior to the end of maternity leave.
- For adoption – the protected period now covers 18 months from placement for adoption.
- For shared parental leave – the protected period now covers 18 months from birth, provided that the parent has taken a period of at least 6 consecutive weeks of shared parental leave. This protection will not apply if the employee is otherwise protected under one of the two points above.
These new rules apply to any pregnancies notified to the employer on or after 6 April 2024 and in respect of the 6-month additional protected period, any maternity leave ending on or after 6 April 2024.
The new Flexible working Regulations came into force on 6 April 2024.
- The Regulations remove the requirement that an employee must have 26 weeks’ service in order to be able to make a request for flexible working. The change makes the right to request flexible working a Day One right.
- This new right applies to flexible working requests made on or after 6 April 2024.
- Employment Relations (Flexible Working) Act 2023
This Act sets out further changes to the rules on flexible working requests and came into force on 6 April 2024. A summary of the changes is:
- Employees can now make two flexible working requests in any 12-month period (previously only one request).
- Requests have to be dealt with by employers within two months of receipt of a request if no extension is agreed (previously employers had three months to deal with a request).
- Employers must consult with an employee before they are able to refuse a request for flexible working.
- In their application, employees will no longer have to explain what effect they believe agreeing to the request would have on an employer and how any such effect might be dealt with.
- New Working Time Regulations to simplify holiday entitlement and holiday pay calculations
For those with flexible working arrangements i.e. irregular or part-year contracts, these Regulations are designed to be helpful in providing greater clarity around holiday pay and accrual.
From 1 January 2024, these Regulations:
- Defined irregular hours workers and part-year workers in relation to the introduction of the holiday entitlement accrual method and rolled-up holiday pay;
- Removed the Working Time (Coronavirus) (Amendment) Regulations 2020 which affect the accrual of COVID-19 carryover of leave;
- Maintained the current rates of holiday pay where 4 weeks is paid at normal rate of pay and 1.6 weeks paid at basic rate of pay, whilst retaining the 2 distinct pots of leave; and
- Defined what is considered ‘normal remuneration’ in relation to the 4 weeks of statutory annual leave.
The following reforms also apply to leave years beginning on or after 1 April 2024:
- They set out a method to calculate statutory holiday entitlement for irregular hours and part-year workers;
- They also set out a method to work out how much leave an irregular hour or part-year worker has accrued when they take maternity or family related leave or are off sick; and
- They also allow rolled-up holiday pay as an alternative method to calculate holiday pay for irregular hours workers and part-year workers.
If our employment law specialists can assist with any queries on these latest changes or with drafting policy updates, then do not hesitate to get in touch with us at hello@dixcartuk.co.uk and we would be more than happy to help.
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – April 2024
This month we bring you some technical cases looking at the circumstances in which a dismissal could be fair despite a full lack of process because of the actions of the disgruntled employee. Uber Eats has been found to have some bugs in its facial recognition software which has caused it to be seemingly discriminatory, a warning to employers using AI. Meanwhile, the Supreme Court has made a declaration of incompatibility between Trade Union law and the European Convention of Human Rights, as it appears to be lacking protection for people lawfully striking other than protection from dismissal. Read on for more details.
- Unfair Dismissal: ‘Rare and unusual’ dismissal fair despite no written warning or appeal
- Racial Discrimination: Uber Eats courier receives financial settlement following alleged discriminatory facial recognition checks
- Trade Unions: Incompatibility of Trade Union Act v Rights to Strike under ECHR
Unfair Dismissal: ‘Rare and unusual’ dismissal fair despite no written warning or appeal
In Matthews v CGI IT UK Ltd [2024] EAT 38, the EAT held that an IT consulting business was right to fire a director without warning after their professional relationship irretrievably broke down, and made even the right to appeal a ‘futile’ exercise.
The EAT concluded that Guy Matthews was not victimised or unfairly dismissed because he gave his bosses little option but to fire him following months of attempts to keep him on, even as he continuously accused a manager of undermining him without proof.
‘This is an unusual and rare case where a dismissal has been found to be fair when there has been no written warning and no offer of an appeal. …They made clear factual findings and were entitled to conclude that this was such a rare case’, Judge Susan Walker wrote for the three-person panel.
Matthews started working at CGI, an IT and business consulting services company, in May 2017. He later became a director and consulting expert on a team specialising in 5G technology, working under Steve Evans. However, around May or June 2020, CGI decided to cut short its 5G pursuits and started a redundancy process, meaning Matthews’ job was at risk, the judgment said. Matthews’ relationship with Evans then began to strain. He believed that Evans was scapegoating him for the failed 5G venture, and had used him as a cover to make another colleague redundant, so Matthews submitted a complaint, the judgment said.
An internal team upheld part of Matthews’ grievance, finding that the company had placed ‘undue weight’ on his 5G experience when it decided his role was at risk when he had several other skills. However, the reviewer dismissed Matthew’s other allegations against Evans, noting that there was nothing to back it up. Matthews then accused the reviewer of incompetence and threatened to submit more grievances against Evans.
By this point, CGI had abandoned the redundancy process, and in November 2020 Matthews began a phased return to work after being sick for some time, the judgment said. CGI gave Matthews the option of remaining on the current team and reporting to Evans, or to try and take on an equivalent role on another team. But Matthews didn’t agree with either, and later in December 2020 rejected another offer. By February 2021, CGI had dismissed Matthews, citing an irretrievable breakdown in the professional relationship.
The EAT concurred with the earlier tribunal’s reasoning and conclusions. Although CGI initially made a mistake in the redundancy procedure, the company genuinely and persistently tried to find a reasonable solution to keep Matthews on but got rejected at every turn, the panel said. And there was no indication that Matthews was willing to make concessions or offer another proposal, given his conviction that Evans should be punished.
The Employment Tribunal had correctly considered whether CGI should have taken less extreme steps. But giving Matthews a warning would have ‘most likely generated a further escalation’, and mediation and the right to appeal would have been futile, too, because of Matthews’ stance that CGI needed to accept wrongdoing on Evans’ part, the judgment said.
Moreover, the panel stressed that the previous judge had not, in fact, applied the wrong legal test for victimisation. Matthews had argued that the judge wrongly used the test for automatic unfair dismissal—weighing whether his protected disclosures were the principal reason for getting the boot, rather than considering whether the whistleblowing complaints had a ‘material influence’ on his dismissal, the judgment says. However, Walker J said it was ‘quite clear that the correct test was applied, and the Employment Tribunal did not apply a test of what was the ‘principal reason’ for dismissal. The quote relied on by the claimant is in a different part of the judgment dealing with other complaints’.
Racial Discrimination: Uber Eats courier receives financial settlement following alleged discriminatory facial recognition checks
In Manjang v Uber Eats UK Ltd and others (ET Case No 3206212/2021), the Equality and Human Rights Commission (EHRC) has announced that Uber Eats driver, Pa Edrissa Manjang, has received a financial settlement, following allegations that facial recognition checks required to access his work app were racially discriminatory, which led to him being unable to access the Uber Eats app to secure work.
In 2021, Mr Manjang was removed from the platform following a failed recognition check and subsequent automated process. He was told by Uber Eats that they had found ‘continued mismatches’ in the photos he had submitted to access the platform. The EHRC and the App Drivers and Couriers Union, both concerned by the use of Artificial Intelligence (AI) and automated processes in this case, helped with funding.
Baroness Kishwer Falkner, Chairwoman of the Equality and Human Rights Commission, said:
“AI is complex, and presents unique challenges for employers, lawyers and regulators. It is important to understand that as AI usage increases, the technology can lead to discrimination and human rights abuses.
We are particularly concerned that Mr Manjang was not made aware that his account was in the process of deactivation, nor provided any clear and effective route to challenge the technology. More needs to be done to ensure employers are transparent and open with their workforces about when and how they use AI.”
Trade Unions: Incompatibility of Trade Union Act v Rights to Strike under ECHR
In Secretary of State for Business and Trade v Mercer [2024] UKSC 12, the appellant, Ms Mercer, was employed as a support worker in the care sector by a care services provider, Alternative Futures Group Ltd (“AFG”). As a workplace representative of UNISON, she was involved in planning and took part in lawful strike action. She was subsequently suspended by AFG. While suspended, Ms Mercer received normal pay but was unable to earn pay for the overtime she would otherwise have worked. Ms Mercer brought a claim against AFG under section 146 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) that she had suffered detrimental treatment done for the sole or main purpose of preventing or deterring her from taking part in the activities of an independent trade union “at an appropriate time” or penalising her for having done so.
By agreement between the parties, the Employment Tribunal determined as a preliminary issue whether, in light of articles 10 (Freedom of expression) and 11 (Freedom of assembly and association) of the European Convention on Human Rights (ECHR), section 146 of TULRCA protected workers from detriment short of dismissal for participation in lawful industrial action as a member of an independent trade union. The Employment Tribunal held that it did not. However, the Employment Appeal Tribunal allowed Ms Mercer’s appeal and held that it could be interpreted as doing so. The Court of Appeal allowed a further appeal by the intervener, the Secretary of State for Business and Trade, holding that section 146 could not be interpreted compatibly with article 10 of the Convention but refused to make a declaration of incompatibility. Ms Mercer then appealed to the Supreme Court.
The Supreme Court, in allowing in part the appellant employee’s appeal against the decision of the Court of Appeal (Civil Division) that although section 14 of TULRCA could not be interpreted compatibly with article 10 of the ECHR a declaration of incompatibility was refused on the basis that there was a lacuna (gap) in the law rather than a specific statutory provision which had been incompatible. It therefore held that that section was the only route that could be available to the appellant to vindicate her article 11 right in the domestic courts or tribunals.
However, that route was blocked by the conventional interpretation given to section 146 of the TULRCA. That was what was inherently objectionable in the terms of section 146 as it stood and that meant that section 146 was incompatible with article 11 of the ECHR. Accordingly, a declaration was made under section 4 of the Human Rights Act 1998 that section 146 of TULRCA was incompatible with article 11, insofar as it failed to provide any protection against sanctions short of dismissal, intended to deter or penalise trade union members from taking part in lawful strike action organised by their trade union.
The Supreme Court unanimously allowed the appeal to the extent that it makes a declaration that section 146 TULRCA is incompatible with article 11 of the ECHR.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law General Update – April 2024
With the new tax year comes plenty of changes to make yourself aware of. We have a whole raft of key employment changes such as to rates of statutory pay and leave, including a new system of working out holiday entitlement for irregular and part-year workers. There are new toolkits and guidance in relation to Requests for Flexible Working, Pregnancy and Maternity Discrimination and how to use AI in recruitment processes. Lastly, there’s something for everyone with the launch of the Environment Agency’s new Portal to report wrong doing for water company employees. Afterall, it’s April showers time!
- New Law: Summary of Key Employment Law Changes from April 2024
- Holiday Entitlement: Changes from April for Irregular Hours Workers and Part-year Workers
- ACAS: Revised Code of Practice on Requests for Flexible Working Published
- Discrimination: EHRC Publishes Updates to Pregnancy and Maternity Discrimination Toolkits
- Recruitment: DSIT Publishes Guidance on Responsible Use of AI in Recruitment
- Whistleblowing: The Environment Agency Launches Portal for its Workers to Report Wrongdoing
New Law: Summary of Key Employment Law Changes from April 2024
The following changes took effect from 1 April 2024:
- changes to the calculation of holiday pay for irregular hours workers and part-year workers;
- the national living wage and national minimum wage annual increase;
- removal of the exemption for live-in domestic workers (e.g. nannies and au pairs) from the national minimum wage; and
- minimum rates of remuneration for agricultural workers in Wales increase.
The following changes took effect from 6 April 2024:
- the right to request flexible working becomes a day one right and changes to requests for flexible working, including a revised ACAS Code of Practice;
- changes to paternity leave and pay;
- introduction of carer’s leave;
- extension of existing requirements that apply to employers when redundancy situations arise where an employee is on maternity, adoption or shared parental leave, so that those requirements can also apply during pregnancy and for a period of time after that leave has ended;
- amendments to employment tribunal rules on responses;
- increases to the tribunal compensation limits;
- increases to the Vento bands for making awards for injury to feelings;
- increase to the rate of Statutory Sick Pay (SSP);
- the weekly earnings limits and thresholds, used for determining liability to Class 1 NICs remain unchanged, including the lower earnings limit of £123 per week, below which employees are not entitled to SSP, Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP), Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (SSPP) or Statutory Parental Bereavement Pay (SPBP);
- reduction in the Class 1 NIC main primary percentage from 10% to 8%;
- extension for a further year of the employer NICs relief for employers hiring qualifying veterans;
- a freeze to the rates of Van Benefit and Car and Van Fuel Benefit;
- increases to the threshold and rate for high income child benefit charge;
- the lifetime allowance on tax-relieved pensions savings is replaced with a lump sum allowance and a lump sum and death benefit allowance.
The following changes took effect from 7 April 2024:
- the rates of SMP, SPP, SAP, SSPP and SPBP are increased.
The following changes took effect from 8 April 2024:
- the rate of maternity allowance (MA) is increased.
For some of the most common rates see our Employment Law Facts and Figures 2024.
Changes to Rights to Leave from 6 April:
Changes have been made by the Paternity Leave (Amendment) Regulations 2024, SI 2024/329 and the Statutory Paternity Pay (Amendment) Regulations 2024, SI 2024/121 to the statutory right to paternity leave and pay, where the expected week of childbirth begins after 6 April 2024 or, in the case of adoption, the expected date of placement is on or after that date. The main changes are that:
- the two-week paternity leave entitlement can be taken in two non-consecutive blocks of one week, rather than just as a block of either one week or two weeks, and
- leave can be taken at any time in the first year after birth or placement for adoption, rather than just in the first eight weeks.
The Employment Rights Act 1996, ss 80J-80N and the Carer’s Leave Regulations 2024, SI 2024/251, give eligible employees the ‘day one’ right to unpaid time off to provide or arrange care for a dependant with a long-term care need. Carers may take up to one week of unpaid leave in a 12-month rolling period.
Enhanced protection from redundancy is available to employees during pregnancy, maternity leave, adoption leave and shared parental leave, and for an additional period after those types of statutory family-related leave.
Holiday Entitlement: Changes from April for Irregular hours workers and part-year workers
For leave years beginning on or after 1 April 2024, the Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (Amendment Regulations 2023), SI 2023/1426 amended the Working Time Regulations 1998, SI 1998/1833 to introduce (among other things) different provisions for calculating holiday entitlement and pay in respect of irregular hours workers and part-year workers.
In summary:
- a different method for calculating how much holiday entitlement has been accrued, namely it is at 12.07% of the hours worked in the pay period;
- there is just one pot of holiday entitlement, rather than the usual distinction for other workers, i.e. the four weeks’ basic entitlement and 1.6 weeks’ additional entitlement. This has implications for how much leave can potentially be carried-over and which payments are to be taken into account when calculating holiday pay.
- the employer has the option of paying rolled-up holiday (which it is not able to do in respect of other workers).
The main reason for these amendments was to reverse the effect of the Supreme Court decision in Harpur Trust v Brazel, which had resulted in some anomalies whereby part-year or irregular hours workers could end up with a more generous paid holiday entitlement than a year-round worker with normal hours who worked more hours over the year. A consultation was carried out by BEIS in January 2023 in order to simplify the assessment procedure, and this is the result.
ACAS: Revised Code of Practice on Requests for Flexible Working published
On 6 April 2024 the revised Code of Practice on requests for flexible working (SI 2024/429), which has been issued by Advisory, Conciliation and Arbitration Service (ACAS) under section 199 of the Trade Union and Labour Relations (Consolidation) Act 1992, came into effect.
It provides that the revised Code of Practice does not apply to applications for flexible working made under the Employment Rights Act 1996, s 80F which are made on or before 5 April 2024 except that any such application will be taken into account in determining whether an employee is prevented from making an application by section 80F(4) of that Act.
From 6 April 2024, the statutory right to request flexible working is amended so that:
- employees have the right to make a flexible working request from the first day of employment, thereby removing the need for any qualifying period of service
- employees may make two flexible working requests, rather than one, during any period of 12 months
- employees no longer have to explain the effect of the proposed change on the employer’s business as part of their request
- the employer must consult the employee before deciding not to accept a request
- the decision period for an employer to respond to a request for flexible working is reduced from three, to two, months
See the revised ACAS Code of Practice on Flexible Working here. This replaces the previous version which was published in June 2014.
Discrimination: EHRC Publishes Updates to Pregnancy and Maternity Discrimination Toolkits
The Equality and Human Rights Commission (EHRC) has published updates to its guidance on pregnancy and maternity discrimination at work. The changes to the various toolkits have been made to reflect a number of changes which have come into effect in April 2024.
The changes to the toolkits include:
- the extension of protection from redundancy to include pregnant women and those on maternity, adoption and shared parental leave;
- offering suitable alternative employment to pregnant women and those on maternity, adoption and shared parental leave in a redundancy situation, including giving priority over other employees regarding alternative roles;
- providing the right to request flexible working from the first day of employment;
- increasing flexibility in how paternity leave can be taken.
See these links for more information:
- Maternity, paternity, adoption or shared parental leave and pay
- Pregnancy and maternity
- Pregnancy, adoption and maternity: Return to work
Recruitment: DSIT publishes guidance on responsible use of AI in recruitment
The Department for Science, Innovation and Technology (DSIT) have published ‘Responsible AI in Recruitment’ guidance. It centres on ensuring good practice for the procurement and deployment of AI systems for HR and recruitment. It specifically focuses on technologies used in the hiring process, such as sourcing, screening, interview and selection. AI can automate and simplify these processes. However, it also highlights risks such as perpetuating existing biases, digital exclusion, and discriminatory job advertising and targeting.
Read the full guidance here.
Whistleblowing: The Environment Agency launches portal for its workers to report wrongdoing
The Environment Agency (EA) has launched a whistleblowing portal, allowing water industry workers to report serious environmental wrongdoing by their water companies. Internal water company whistleblowers are encouraged to alert the EA to any concerns, which will then be assessed by the regulator’s expert intelligence teams. Reporters’ identities will be protected and treated as confidential sources. The portal builds on the whistleblowing reports that the EA can already receive under the Prescribed Persons (Reports on Disclosures of Information) Regulations 2017, SI 2017/507.
Guidance on the portal can be found here.
EA employees can email reports to whistleblowing@environment-agency.gov.uk. Non-employees of the EA can send reports by mailing raiseaconcern@environment-agency.gov.uk.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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The data contained within this document is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time. This document is provided for information purposes only and does not constitute accounting, legal or tax advice. Professional advice should be obtained before taking or refraining from any action as a result of the contents of this document.
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Employment Law Case Update – January 2024
Employment Law
We welcome you back into the land of employment law cases with a few of cases from the back end of 2023. Learn how the ACAS Code plays a crucial role in handling whistleblowing cases, and its implications for compensation uplifts and the limitations of contractual terms. We take a look at how future discrimination claims can be waived when done correctly in a settlement agreement, and evaluate how timings should be considered when looking at constructive dismissal cases, particularly where the claimant has a long employment history and there have been efforts at negotiation.
- Whistleblowing: Using the ACAS Code for grievances and compensation uplifts, and whether contractual terms can limit losses
- Equality Act: Unknown future claims can be waived in a settlement agreement if sufficiently particularised
- Constructive Dismissal: Was resignation too slow to have been ‘the last straw’?
Whistleblowing: Using the ACAS Code for grievances and compensation uplifts, and whether contractual terms can limit losses
In SPI Spirits (UK) Ltd & Anor v Zabelin [2023] EAT 147, the claimant was the Group Chief Investment Officer for the first respondent company (SPI Spirits). He agreed a 30% pay cut from April to June 2020 because of the effects of the coronavirus (COVID-19) pandemic on the business. When the first respondent said that the pay cut was being extended to at least 1 September 2020 the claimant raised, in an email of 4 June 2020 and at a meeting on 5 June 2020, various issues including alleging that the pandemic was being used as an excuse to cut pay and that employees were being intimidated. On 8 June 2020 the claimant had a telephone discussion with the second respondent (Shefler), the majority shareholder in the group, who suggested that the claimant should resign if he didn’t agree to proposed changes to bonuses. When the claimant queried why he should resign the second respondent dismissed him. The claimant brought claims including of automatic unfair dismissal and detriment on the grounds of having made whistleblowing protected disclosures (including regarding (a) the claimant’s pay; (b) the claimant’s 2020 bonus; (c) staff welfare; and (d) coronavirus pretence).
The outcome of the case was that the EAT confirmed that a grievance must be in writing for the ACAS Code on Disciplinary and Grievance Procedures to apply but, once that has occurred, if new grievances arise they do not each have to be put in writing for the Code to be engaged, unless there is a ‘material change’ in the nature or scope of the complaint or redress sought such that fairness requires it. In addition, the uplift to compensation for an employer’s failure to follow the ACAS Code also applies to awards made against individuals if the relevant individual was responsible for the failure. Finally, contractual terms limiting loss will not be upheld if they produce an outcome which would have the same effect as disapplying or limiting a statutory provision, according to the EAT.
Equality Act: Unknown future claims can be waived in a settlement agreement if sufficiently particularised
In Bathgate v Technip Singapore PTE [2023] CSIH 48 the Inner House of the Court of Session held that the various protections for the employee built into section 147 of the Equality Act 2010 do not exclude the settlement of future claims so long as the types of claim are clearly identified and the objective meaning of the words used encompassed settlement of the relevant claim. Section 147 of the Equality Act 2010 allows claims for discrimination to be settled using a settlement agreement provided that the settlement agreement relates to the ‘particular complaint’. Accordingly, a settlement agreement can relate to a future complaint if there is sufficient description of it in the claims waived.
There has been significant uncertainty for some time about whether or not future claims an employee might acquire against their employer but which have not yet arisen could, with the correct wording, be effectively waived as part of a settlement agreement. This decision by the Inner House of the Court of Session (the Scottish equivalent to the Court of Appeal) comes unequivocally to the conclusion that future claims can be waived in a settlement agreement so long as they are sufficiently identified in accordance with the requirements in Hinton v University of East London [2005] EWA Civ 532.
Whilst employers would be wise to consider including future claims in settlement agreements, those representing individuals may try to exclude future claims. However, it should be noted that the decision in this case may not necessarily be followed in England. While decisions from the Inner House of the Court of Session are often considered by employment tribunals and the Employment Appeal Tribunal (EAT) in England, they are not strictly binding, so caution should be exercised.
Constructive Dismissal: Was resignation too slow to have been ‘the last straw’?
In Leaney v Loughborough University [2023] EAT 155, the claimant had been a university lecturer and warden of a halls of residence with over 40 years’ service at the University. A student had made a complaint against him in 2018, which he disputed and had led to disciplinary action and in turn a grievance being raised by the claimant. He subsequently resigned as warden in December 2019, and asked several times for a grievance appeal to be held. They told him several times to draw a line under the matter but the claimant persisted. On 29 June 2020, he was told that the university could not look at the issue any further. There followed a period of negotiation between solicitors but due to be back at work that autumn, the claimant was so anxious he was signed off sick by his GP on 10 September 2020, and then resigned with notice on 28 September 2020, thereafter claiming constructive unfair dismissal, alleging a cumulative breach of the implied duty of trust and confidence.
The claimant claimed the notification he had received on 29 June 2020 was the ‘last straw’. The tribunal held that he had affirmed the contract of employment during the three months between 29 June, and his resignation on 28 September 2020 because he should have tendered his resignation prior to this.
The EAT disagreed with the tribunal’s approach and remitted the issue of affirmation for reconsideration, holding:
- that the tribunal’s focus should not necessarily be on how much time has passed when considering whether affirmation has taken place, but should take into account all the surrounding facts and circumstances should be weighed.
- where there has been a period of delay then length of service should be taken into account in deciding whether the contract has been affirmed but it is fact sensitive. It is understandable that an employee with long service may take longer to consider their position (without necessarily having affirmed) before removing themselves from a secure job, but the surrounding context is vital and should be applied on an case-by-case basis.
- a period of negotiation before resignation is relevant. Negotiations could be an employee’s attempt to give the employer the opportunity to ‘put things right’ before resigning and therefore such a delay may not necessarily amount to affirmation of the contract.
His claim was dismissed on the basis that, between the date of the last matter that could potentially be relied upon as a last straw, and the date of resignation, he had affirmed the contract. Having regard to the facts found, and the matters relied upon by the claimant as relevant to the question of whether there had been affirmation, the tribunal erred in its approach to affirmation. The EAT found the tribunal had focused incorrectly on things that did not happen (the Claimant did not delay his resignation because of student exams and did not state that he was working under protest), which, if they had happened, might have pointed away from affirmation. Instead, they should have honed in on what conduct there had been which might have amounted to affirmation. The EAT therefore remitted the matter to the same tribunal for fresh consideration of that issue, in light of the facts found, and, as necessary, the further issues to which the complaint gave rise.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
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