Insights Archives

Lets talk directors duties: What SME directors should not ignore

Posted on 14 April 202524 April 2025 by Sarah O'Sullivan

Becoming an SME (Small and Medium-sized Enterprise) in today’s world can be incredibly exciting! The idea of starting a business and watching it blossom into something successful, knowing you’ve curated the business you want is fulfilling. But with success comes great responsibility.

Why Directors duties matter

One of the most important yet often overlooked responsibilities when operating as a UK limited company, is understanding directors’ duties. While the term might sound like a corporate “buzzword”, it is far from it. Running a small or medium-sized enterprise at times can be overwhelming particularly having to wear so many different hats -which is generally the life of an SME business owner, and so understanding your directors’ duties is crucial to running a healthy and sustainable business.

Whether you’re an individual business owner or a team of directors, once you step into the role of directorship you owe legal and fiduciary duties to your company which are set out in law under the Companies Act 2006.

The 7 general (formally referred to as statutory duties) duties of a director

Duty to act within powers: a director must act in accordance with its company’s constitution and governance documents and only exercise powers for the purposes for which they are conferred.
Duty to promote the success of the company: a director must act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, but they are also obliged to pay attention to the interests of the company’s employees, the need to foster business relations, the long-term consequences of the company’s actions, the impact on the community and the environment, the desirability for maintaining a reputation for high standards and in certain circumstances the interests of its creditors.
Duty to exercise independent judgment: a director must make decisions independently, without subordinating their powers or being influenced by others.
Duty to exercise reasonable care, skill, and diligence: a director must perform their role to the standard of a reasonably diligent person with the same level of skill and knowledge of that expected from the role.
Duty to avoid conflicts of interest: a director must not place themselves in a position where there is a conflict between the duties they owe to the company, and either their personal interest or third-party interests (unless the company consents).
Duty to declare interest in a proposed transaction: a director must declare to the board if they have any personal interest in a company transaction.
Duty not to accept benefits from third parties: a director must not accept gifts or personal benefits that could compromise their impartiality.

In addition to the above:

The duty to promote the success of the company is subject to any enactment or rule of law which requires directors to consider or act in the interests of its creditors (“creditor duty”) which is important to consider in the context of insolvency. If a company becomes insolvent a director has a fiduciary duty to act in the best interest of its creditors.
Directors have other administrative statutory duties to the company such as the obligation to keep the statutory books updated and to file accounts and annual returns. A company’s constitutional document can go further to extend certain obligations and also modify certain rules, therefore it is important that a director understands these and how they influence their duties.

What is the impact of not complying?

Legal: directors can be held personally liable and despite being a small company and even under resourced this is no exception. Unlike larger corporates, SMEs most likely do not have dedicated departments such as HR, legal, or compliance to prevent poor decision-making, making it even more critical for the business owner to be mindful of their legal responsibilities.
Growth: director’s fiduciary duties to the company are fundamental to ensuring that the company operates properly. Investors and banks will want assurance that their investments are being managed with good governance that contribute to long-term success.
Reputation: upholding directors duties sets a standard to its employees, clients and stakeholders which demonstrates that the business is reliable, trustworthy and a company that carries out its business with ethical decision-making.

Consequences for breaching?

Personal liability: a director could be held personally liable for any losses suffered by the company.
Disqualification: a breach could result in a director being disqualified from acting.
Criminal charges: a breach involving fraud, dishonesty, or trading while insolvent could lead to a director facing criminal prosecution.
Reputational damage: a breach could damage a director’s professional reputation and the company reputation that they have spent time to build.

Can you be protected against liability?

Generally, there is no exemption for a director from liability for negligence, default, breach of duty or breach of trust in relation to the company, neither can a director be indemnified for such claims. Insurance on the other hand is permitted to be taken out to help cover legal costs and potential damages arising from certain claims related to their role.

What can you do now?

It is important for directors to have a clear understanding of their roles and responsibilities as this is fundamental to the operation and longevity of a company. Typically, directors of SME’s are often the key decision makers and do not have the large corporate structure to mitigate poor decision-making, therefore making it essential that directors have a thorough understanding of their duties.

A good starting point is understanding the company’s constitutional documents, including the articles of association, and being fully aware of both legal and financial obligations. Additionally, maintaining detailed records of decision-making including board meetings and resolutions, helps demonstrate governance practices and provides accountability. Directors must also ensure that personal and company interests remain separate, maintaining transparency at all times. In areas of uncertainty we would always recommend seeking legal advice.

What company directors need to know about the Economic Crime and Corporate Transparency Act 2023 (ECCTA)

Posted on 8 April 202524 April 2025 by Sarah O'Sullivan

The Economic Crime and Corporate Transparency Act 2023 (“ECCTA”) gives Companies House new powers to ensure that the information it holds is accurate and not being used to support criminal activity. The Act introduces a range of reforms, with a focus on three key areas:

Key changes introduced by ECCTA

1. Identity Verification
Directors and persons with significant control (PSCs – those holding more than 25% of the shares or voting rights in a company) must verify their identity with Companies House or through an Authorised Corporate Service Provider (ACSP), such as a solicitor or accountant.

2. Information Sharing
The Act encourages greater collaboration between regulated firms, allowing them to share client data more easily where there is a suspicion of economic crime.

3. New Criminal Offences
A new corporate offence of “failure to prevent fraud” will apply to large businesses, not-for-profits, and public bodies. These organisations will be required to put in place measures to prevent fraud being committed by employees or others connected to the business.

Timeline of reforms

While many of the details and timings are still being confirmed, the following key milestones have been announced:

From 25 February 2025

Companies House can now speed up the process of striking off companies formed on a false basis.
Checks can now be carried out on ACSPs authorised to verify identities.

From 8 April 2025

Individuals can voluntarily verify their identity either directly with Companies House or through an ACSP.

By Summer 2025

Individuals will be able to apply to suppress their residential address from public view in certain cases.

By Autumn 2025

Identity verification will become mandatory for all new directors and PSCs when appointed.
A 12-month transition period will begin for existing directors and PSCs to complete their verification.

From 1 September 2025

The new offence of “failure to prevent fraud” takes effect.
- Large companies should assess whether they have appropriate anti-fraud procedures in place.
- A business can be held criminally liable even if management was unaware of the fraud – unless reasonable preventative measures were in place.

By Spring 2026

Identity verification will be required for anyone filing documents at Companies House.
Third-party agents filing on behalf of companies must be registered as ACSPs.
Companies House will be able to reject documents filed by disqualified directors unless submitted through an ACSP.

By End of 2026

All limited partnerships will be required to submit more detailed information for improved transparency.
Companies House will begin enforcement action against directors, PSCs, and RLEs who have failed to verify their identity.

Identity verification – what you need to know

How to Verify Your Identity

From 8 April 2025, individuals can verify their identity:

1. Directly with Companies House
Using the GOV.UK One Login system, individuals can complete the process:

Through the GOV.UK ID Check app,
By answering security questions online, or
In person at a Post Office.

Each method requires photo ID and answering a series of security questions.

2. Through an ACSP
Alternatively, an authorised intermediary (such as a solicitor or accountant) can verify the individual’s identity and confirm the information to Companies House.

What is an ACSP?

An Authorised Corporate Service Provider is:

Registered with a supervisory body for anti-money laundering (AML) purposes; and
Authorised to file documents on behalf of clients whose identities have been verified.

ACSPs must keep records of every identity verification they carry out and may be suspended or removed from the register if they fail to meet their obligations.

Who must verify their identity?

From autumn 2025, identity verification will be mandatory for:

New directors, PSCs and registrable legal entities (RLEs);
Existing directors, PSCs and RLEs (within the 12-month transition period).

failure to comply may result in:

A fine and criminal offence for acting without verified ID;
Directors being prohibited from acting;
The company and its officers committing an offence if they allow unverified individuals to act as directors.

Note: The director’s appointment will still be legally valid, even if they have not verified their identity – but they must not act in the role until verification is complete.

Looking ahead

By spring 2026, Companies House also intends to require identity verification for anyone making filings on behalf of a company.

This summary is based on guidance available as of April 2025. We are monitoring updates from Companies House and will provide further guidance when more information becomes available.

If you have any questions or concerns about how these changes may affect your business, please don’t hesitate to contact us.

Economic review March 2025

Posted on 3 April 202524 April 2025 by Sarah O'Sullivan

Key takeaways

The Chancellor cut welfare and departmental spending to restore a fiscal buffer, but risks to forecasts remain high
Inflation dipped unexpectedly but is expected to rise again due to higher energy, taxes and wage costs
Business and retail activity showed resilience, but weak manufacturing and trade tensions cloud economic prospects

Chancellor trims spending plans

Rachel Reeves delivered her Spring Statement on 26 March, unveiling welfare cuts and spending reductions in order to balance the government’s books in the face of a worsening fiscal outlook.

The new spending plans were required to ensure the Chancellor stays on track to meet her two self-imposed fiscal rules, which she confirmed remain “non-negotiable.” An updated forecast produced by the Office for Budget Responsibility (OBR) had more than wiped out the Chancellor’s previous £9.9bn fiscal buffer announced in last October’s Budget due to a combination of higher debt interest costs and lower economic growth.

Several policy changes announced in the Spring Statement, including welfare reforms and day-to-day departmental spending reductions, restored the buffer back to its October level. The OBR did, however, note that its size remains historically low and that the buffer therefore provides only a small margin of error against the risk of future economic shocks.

Speaking after Ms Reeves delivered her statement, OBR Chair Richard Hughes also acknowledged the precarious nature of economic forecasting and admitted there were many factors that could once again “wipe out” the Chancellor’s fiscal headroom; these include an escalating trade war, a small downgrade to growth forecasts or a rise in interest rates.

This vulnerability was vividly highlighted just hours after the Chancellor finished her speech, with President Trump’s announcement of a new 25% tariff on cars and car parts coming into the US – a move which is widely expected to hit global growth prospects.

Analysis by the Institute for Fiscal Studies (IFS) also concluded that the Chancellor’s headroom is ‘very small.’ IFS Director Paul Johnson added there was a “good chance” economic forecasts would deteriorate significantly before the Autumn Budget which could leave the government facing months of damaging speculation about what taxes might need to be increased.

Inflation dips but fresh climb predicted

While the latest batch of inflation statistics did reveal a larger than expected monthly decline in the headline rate, economists continue to warn that price rises are likely to accelerate again soon.

Figures published last month by the Office for National Statistics (ONS) showed the Consumer Prices Index (CPI) 12-month rate – which compares prices in the current month with the same period a year earlier – dropped to 2.8% in February from 3.0% the previous month. This rate was just below economists’ expectations, with a Reuters poll predicting a reading of 2.9%.

ONS said February’s decline was primarily driven by lower clothing and footwear prices which fell for the first time in over three years, partly due to an unusually high number of sales during the month. This unseasonal clothes discounting offset small price increases from a number of other categories, including alcoholic drinks.

Despite the monthly dip, economists still expect a fresh pick-up in the CPI rate over the coming months. Indeed, a number of near-term price rises, such as energy, Council Tax and water bill increases, are already baked in, while surveys suggest many businesses will look to raise prices in response to April’s National Insurance and Living Wage increases.

Last month also saw interest rates remain on hold, following the latest meeting of the Bank of England’s interest-rate setting committee. At its 19 March meeting, the Bank’s nine-member Monetary Policy Committee (MPC) voted by an 8-1 majority to leave Bank Rate unchanged at 4.5%; the one dissenting voice preferred a 0.25 percentage point reduction.

Commenting after announcing the decision, Bank Governor Andrew Bailey said he still believed rates were on a “gradually declining path” but noted that increasing geopolitical and global trade uncertainties meant the Bank would have to be “careful” when considering future cuts. The next MPC announcement is scheduled for 8 May.

Markets

At the end of March, concerns weighed on financial markets, days before Donald Trump’s tariff plans are due to take effect. Investors are braced for a broad set of tariffs, set to be unveiled on April 2 – described as ‘Liberation Day’ by the President.

In the UK, the FTSE 100 index closed the month on 8,582.81, a loss of 2.58%. The mid-cap focused FTSE 250 closed the month down 4.19% on 19,475.48, while the FTSE AIM closed on 681.99, a loss of 3.10%.

Across the pond, the Dow closed March down 4.20% on 42,001.76, while the tech-orientated NASDAQ closed the month down 8.21% on 17,299.29. On the continent, the Euro Stoxx 50 closed March 3.94% lower on 5,248.39. In Japan, the Nikkei 225 ended the month on 35,617.56, a monthly loss of 4.14%.

On the foreign exchanges, the euro closed the month at €1.19 against sterling. The US dollar closed at $1.29 against sterling and at $1.08 against the euro.

Brent Crude closed March trading at around $74 a barrel, a monthly gain of just over 7.0%. Oil moved higher after Donald Trump suggested that the US could impose secondary tariffs on Russia, a major exporter. The OPEC+ producer’s crude exports hit a five-month high in March. Gold closed the month trading around $3,149 a troy ounce, a monthly gain of almost 10.00%. The gold price reached a trading high on 31 March as concerns intensified over an escalating trade war, prompting investors to flock to the safe-haven asset.

Index	Value (31/03/25)	Movement since 28/02/25
FTSE 100	8,582.81	-2.58%
FTSE 250	19,475.48	-4.19%
FTSE AIM	681.99	-3.10%
Euro Stoxx 50	5,248.39	-3.94%
NASDAQ Composite	17,299.29	-8.21%
Dow Jones	42,001.76	-4.20%
Nikkei 225	35,617.56	-4.14%

Survey reports uptick in business activity

Although the latest monthly economic growth statistics did reveal an unexpected contraction at the start of the year, more recent survey evidence points to a “modest expansion” in March.

Figures published last month by ONS showed the UK economy shrank by 0.1% in January, driven by a sharp decline in manufacturing output; in contrast, a Reuters poll had predicted a monthly growth rate of 0.1%, following December’s 0.4% expansion. While ONS said the economy was still estimated to have grown by 0.2% across the three months to January, it also noted the overall picture was one of ‘weak growth.’

Data from the recently released S&P Global/CIPS UK Purchasing Managers’ Index (PMI) does point to a subsequent pick-up in activity, with March’s preliminary headline growth indicator hitting a six-month high of 52.0. This upturn, though, was driven by only small pockets of growth, most notably in financial services, with manufacturers continuing to struggle.

S&P Global Market Intelligence’s Chief Business Economist Chris Williamson said, “The signal from the flash PMI is an economy eking out a modest expansion in March, consistent with quarterly GDP growth of just 0.1%. However, just as one swallow does not a summer make, one good PMI doesn’t signal a recovery.”

Retail sales unexpectedly rise

The latest official retail sales statistics showed that sales volumes defied analysts’ expectations by rising in February, while survey evidence points to a continuing modest pick-up in consumer sentiment.

Figures released last month by ONS revealed that retail sales volumes grew by 1.0% in February, with broad-based strength reported across all major categories except food stores sales. This loosening of consumer purse-strings came as a surprise to most analysts, with a Reuters poll of economists actually predicting a 0.4% monthly contraction.

Data from GfK’s most recent consumer confidence survey also reported further modest improvement in the overall level of consumer sentiment. While March’s headline figure remained below the survey’s long-run average of -10, consumer morale was buoyed by greater optimism in economic prospects and ticked up to a three-month high of -19.

Evidence from the latest CBI Distributive Trades Survey, however, shows the retail environment remains challenging. According to the survey, annual sales volumes fell ‘markedly’ in March with retailers predicting a further decline, albeit at a slower pace, in April too. Firms across the retail and wholesale sectors suggested ‘global trade tensions,’ as well as last Autumn’s Budget decisions, were weighing on confidence and leading to a reduction in demand.

All details are correct at the time of writing (01 April 2025)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Tees is a trading name of Tees Financial Limited which is regulated and authorised by the Financial Conduct Authority—registered number 211314.

Tees Financial Limited is registered in England and Wales—registered number 4342506.

Autism support: Workplace and school adjustments guide

Posted on 2 April 202517 April 2025 by Sarah O'Sullivan

Understanding the behaviours associated with Autism, as well as implementing reasonable adjustments, is essential for helping those with Autism thrive in the workplace and in education. By improving awareness and accessibility, we can help neurodivergent individuals thrive and reduce stigma around Autism in professional and academic settings.

What is autism?

Autism is a lifelong neurodivergence that affects how individuals experience and interact with the world. According to the National Autistic Society, “Autism influences how people experience and interact with the world. It is a lifelong neurodivergence and disability. Autistic people are different from each other, but for a diagnosis they must share differences from non-Autistic people in how they think, feel, and communicate.”
As a spectrum condition, Autism affects those differently. While Autistic individuals share certain characteristics some may have difficulty with social interactions, others may struggle with sensory sensitivities, such as sensitivity to noise, light, or touch.

Is autism a disability?

While Autistic people differ in terms of how they prefer to be described (some may prefer the term ‘neurodiverse’, for example), for legal purposes Autism is classed as a disability under the Equality Act 2010. This means that employers are required to make reasonable adjustments to support Autistic employees. Providing equal opportunities for Autistic individuals ensures that they are treated fairly in the workplace and beyond.

How does Autism affect work?

Autistic employees may experience challenges in workplace interactions and adapting to changes Sensory sensitivities like light and noise can make busy office environments overwhelming, while some may react strongly to being touched by others or smells in the office. This can lead to being stressed or overwhelmed when confronting a difficult or unfamiliar situation.

Can Autistic people work?

With the right support in place, people with Autism are able to enter the workplace and thrive.

Many Autistic individuals thrive in structured environments with clear expectations. Employers can build inclusive work environments by understanding and recognising the behaviors associated with Autism and consider what reasonable adjustments could be made to help.

Reasonable adjustments for Autistic employees?

Employers can introduce simple yet effective adjustments to support Autistic employees. In return, you could be rewarded with a diligent, highly effective worker who is an asset and really has something to contribute to your business.

Common reasonable adjustments may include:

Structured Induction Process – Carrying out a highly detailed induction process outlining exactly what they will be doing day-to-day and what their responsibilities will be.
Routine and Predictability – Offering a weekly schedule, detailing what they will be doing in the mornings and afternoons, what time lunch is, when they may leave, and any scheduled meetings. This will help them settle into a routine and reduce their anxiety.
Sensory Adjustments – Providing noise-canceling headphones, separate quiet workspaces, or adjustable lighting.
Training – Educating staff on neurodiversity including how to interact and support Autistic individuals in the workplace.
Flexible Working Arrangements – Allowing remote work or flexible hours to accommodate sensory sensitivities (for example, allowing your employee to start work later to avoid travelling during rush-hour, or permitting them to work from home on days they may be feeling particularly anxious).
Mentorship Programs – Assigning a mentor to provide guidance and support.

This list is by no means exhaustive, not all Autistic employees will require the same adjustments, as Autism presents differently in each individual.

How does Autism affect learning?

In education, Autistic students may face challenges with communication, social interactions, and sensory sensitivities.

Some may have delayed speech development and difficulty communicating with teachers and fellow pupils, while others may have advanced verbal skills but struggle with non-verbal communication.

Many also struggle to follow directions and understand what they are being asked to do, while some will find it difficult to understand their teachers’ and peers’ body language and facial expressions. They may also be very reluctant to try new things, or have fixed, narrow interests that make it difficult for them to branch out and enjoy new learning experiences.

School is also a highly social environment and Autistic children can become distressed and anxious when put in situations where they have to communicate with their classmates. They may struggle with group activities, particularly those involving imaginative or creative play. Pupils with sensory processing difficulties may struggle in a noisy classroom or playground environment, while others may dislike other children touching them. If they become overwhelmed, they may develop symptoms such as headaches, anxiety, panic attacks or aggression.

How can teachers support Autistic students?

Teachers play a crucial role in creating an inclusive learning environment. Good communication is key when supporting an Autistic pupil, and you may have to communicate differently with an Autistic child than you would a neurotypical child. Strategies include:

Clear Instructions – Instead of general instructions like “tidy the classroom,” provide specific tasks such as “put the pencils in their pots and come back when finished.”
Visual Aids – Using visual schedules, sign language, or other non-verbal cues to support communication.
Routine and Structure – Establishing a consistent daily routine to reduce anxiety.
Flexible School Policies – Allowing uniform modifications or noise-canceling headphones for sensory-sensitive students.
Quiet Spaces – Providing a designated area where students can retreat if overwhelmed.
Adjustments to Class Schedules – Allowing staggered start times or early class exits to avoid crowded hallways.

If a teacher requires upskilling to enable them to more effectively support a child with Autism, it could be extremely useful to find out about opportunities for training on how to support and communicate with Autistic children.

Sensitive and caring Employment and Education Law legal advisers

No two Autistic individuals are the same. Employers and educators should work closely with Autistic employees, students, and their families to tailor adjustments that best meet their needs.

If you are an employer, employee, student, or parent seeking guidance on neurodiversity accommodations, our Employment and Education Law specialists are here to provide expert advice. We are committed to ensuring fair treatment and accessibility in workplaces and schools for Autistic individuals as well as those with ADHD, Dyslexia, Dyspraxia and more.

By adopting an inclusive environment through awareness and adjustments, we can help push neurodivergent individuals to succeed in their careers and education.

Speak with one of our employment law or education solicitors today to discuss how we can support you.

Workplace stress: A legal and ethical imperative for employers

Posted on 2 April 202517 April 2025 by Sarah O'Sullivan

April marks Stress Awareness Month, a timely reminder for employers to address workplace stress, not just as a productivity concern but as a legal and ethical responsibility. Stress in the workplace can lead to burnout, reduced efficiency, and increased absenteeism. However, beyond these operational challenges, failing to address workplace stress may expose employers to legal risks too.

The legal implications of workplace stress

Under the Health and Safety at Work Act 1974, employers have a duty of care to ensure the health, safety, and welfare of their employees. This includes taking reasonable steps to mitigate workplace stress.

Additionally, the Equality Act 2010 protects employees from discrimination related to mental health conditions that may, depending on the circumstances, qualify as disabilities. Failing to make reasonable adjustments for employees with disabilities could result in claims alongside allegations of unlawful discrimination, constructive dismissal, or personal injury. Doing the right thing, in compliance with the rules, and documenting this, are key to being able to defend any claims or complaints that may be asserted against a business.

Common workplace stressors and employer responsibilities

Stress in the workplace can arise from multiple factors, including:

Excessive workload and unrealistic deadlines
Poor management and lack of support
Unclear job roles and expectations
Workplace bullying or harassment
Job insecurity and organisational change

Employers should proactively identify and mitigate these possibilities. Risk assessments under the Management of Health and Safety at Work Regulations 1999 should include stress-related factors and ensure appropriate measures are in place.

Mitigating stress: Best practices for employers

To comply with employment law and foster a productive work environment, we recommend employers consider implementing the following amongst the range of steps that they may follow:

Conduct regular stress audits – Employers should assess workplace stress levels through employee surveys, one-on-one meetings, and risk assessments. Early identification helps prevent escalation.

Establish clear policies and procedures – Having a stress management policy ensures employees know their rights and where to seek support. A zero-tolerance policy on workplace bullying is also crucial.

Support employee well-being – Provide mental health training for managers to recognise signs of stress. Encourage a work-life balance, offering flexible work arrangements where possible. Implement Employee Assistance Programs (EAPs) for confidential mental health support.

Support employee well-being – Ensure reasonable adjustments are made where applicable and appropriate. For employees experiencing stress-related health conditions, employers should make reasonable adjustments where appropriate such as reduced workloads, additional breaks, or changes in responsibilities. Note that the duty under the Equality Act, where applicable, is to make “reasonable” as opposed to all/any changes and what is reasonable will depend on factors such as the size and resources of the organisation in question.

Foster a positive work culture – Encourage open communication about mental health without stigma. Recognise and reward employees for their efforts to reduce undue pressure. Promote team-building activities to enhance morale and collaboration.

Conclusion

Workplace stress is more than an HR challenge—it is a legal and ethical responsibility. Employers who fail to manage stress effectively risk not only employee dissatisfaction and turnover but also legal repercussions under UK employment law. By taking proactive steps, businesses can create a supportive work environment, reduce absenteeism, and enhance overall productivity—ensuring compliance while prioritising employee well-being.

At Tees, our Employment Law team can conduct a comprehensive audit of your HR systems to ensure they are fair, reasonable, and compliant with legal obligations. By reviewing workplace policies, risk assessments, and stress management procedures, we help safeguard employee well-being while protecting your business from potential legal risks. Our expert team can identify areas for improvement, implement best practices, and ensure your policies align with employment law standards—creating a healthier, more resilient workplace.

This Stress Awareness Month, take action to safeguard your workforce. A healthier workplace is a legally sound and more successful one.

What is the Duty of Candour policy in the UK?

Posted on 27 March 20257 April 2025 by Sarah O'Sullivan

To comply with the Duty of Candour, healthcare providers must adopt an approach of openness and transparency with their patients, particularly when something goes wrong with their care or treatment.

When errors occur, patients and their families can expect to be informed honestly about what happened, what can be done to deal with any harm caused and what will be done to prevent a recurrence to someone else.

Professional Duty of Candour

Every health and care professional must be open and honest with patients and people in their care when something that goes wrong with their treatment or care causes, or has the potential to cause, harm or distress. This is an individual duty on each health care provider.

Role of professional bodies in enforcing the duty

Regulators of specific healthcare professions oversee the professional duty of candour. These include:

The General Medical Council (GMC)
The Nursing and Midwifery Council (NCM)
The General Dental Council (GDC)

Failure to adhere to the duty of candour may result in disciplinary action being taken.

Examples of professional duty in practice

As soon as the professional realises something has gone wrong with the care of a patient, they should:

speak to the patient or family members face-to-face
provide a true account of what has happened, allowing time for any questions
say sorry – this is always the right thing to do and is not an admission of liability
take action to put things right where possible
document the incident and actions taken in writing

Statutory Duty of Candour

This duty applies to the organisations that provide healthcare services. It is a legal obligation on organisations to be open and transparent with people using their services in relation to their treatment or care.

This duty is set out under Regulation 20 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014.

Key elements of the statutory duty

The statutory duty is triggered by a “notifiable safety incident” which is an unintended or unexpected incident that occurred during the provision of care or treatment that could or appears to have resulted in the following outcomes: (in the reasonable opinion of the healthcare professional)

Death that is directly related to the incident
Severe harm
Moderate harm (harm that requires a moderate increase in treatment and significant but not permanent harm)
Prolonged psychological harm (continuous period of psychological harm for 28 days)

When something qualifies as a notifiable safety incident, a conversation must begin with the patient who was harmed, or their family, as soon as is reasonably practicable. The healthcare provider should:

Tell the patient face-to-face that a notifiable safety incident has taken place
Say sorry
Provide a true account of what happened and explain what further investigations may take place
Follow up by providing this information and the apology in writing and providing updates
Keep a written record of all communications and meetings

They should offer the patient practical support, such as providing an interpreter if needed, and emotional support such as counselling.

Consequences of failing to comply with the duty

It is an offence for a Care Quality Commission (CQC) regulated organisation to fail to comply with the duty. Failure can result in enforcement activity ranging from warning or requirement notices to criminal prosecutions.

The difference between statutory and professional Duty of Candour

The statutory duty of candour applies to organisations rather than individuals and covers all providers regulated by the CQC.

The professional duty of candour is an individual duty that applies to all registered healthcare professionals.

The statutory duty also contains specific requirements for notifiable safety incidents.

NHS Employers have responded to the consultation on the regulation of NHS managers welcoming the introduction of a new professional duty of candour on NHS leaders.

Medical negligence and congenital hip dislocation

Posted on 27 March 20251 April 2025 by Sarah O'Sullivan

Congenital hip dysplasia (CDH), also known as developmental dysplasia of the hip (DDH) is a condition some babies are born with where the hip joint fails to develop properly. If untreated, hip dysplasia can lead to long-term complications. Treatment depends on the severity of hip dysplasia, with mild cases possibly being capable of resolving independently and more severe cases requiring time in a Pavlik harness, casting or surgery. Early diagnosis and treatment are therefore crucial to the long-term outcome for your baby.

Medical negligence claims – congenital hip dislocation

Doctors should be able to diagnose congenital hip dislocation during the new-born examination or the 6-8 week post-natal check. Early diagnosis and proper treatment are important to help the baby recover, develop and enjoy as full a range of movement as possible in their hips. Babies with congenital hip dislocation may need treatment to try and resolve the problem. Failure to detect congenital hip dislocation and start treatment early can lead to long-term health problems.

Claims for congenital hip dislocation usually arise as a result of:

There was a failure to follow protocols or carry out the tests at the relevant time.
Misdiagnosis by incorrectly interpreting the results of the tests or failing to carry out further tests.
Delays in referral or treatment once congenital hip dysplasia is suspected.

You might have a claim for negligence if your child:

suffered unnecessary pain or required avoidable surgical treatment because of the delayed diagnosis
faces long-term effects of hip dislocation because of the delayed diagnosis, such as: arthritis, difficulty walking and future hip replacement surgery.

If you are concerned about the standard of care your baby received during diagnosis or treatment of their hip dysplasia, and think this might have caused a problem, talk to our medical negligence claims specialists. We’ll listen to your concerns, and help you find out what happened and why.

What is congenital hip dysplasia?

Congenital hip dysplasia (also called developmental dysplasia of the hip) is an abnormality of the hip joint. It can cause partial or total dislocation of the hip.

The NHS states that long-term effects of untreated congenital hip dislocation may include:

developing a limp
painful, stiff joints (osteoarthritis)
hip pain.

Babies with congenital hip dislocation are born with an unstable hip. This can affect their mobility and range of movement in the hip. Usually, this condition shouldn’t interfere with babies learning to crawl or walk.

Fortunately, congenital hip dislocation is quite rare and treatable. It affects about 1 or 2 out of every 1,000 babies born in the UK.

What causes congenital hip dislocation?

Doctors don’t know precisely what causes congenital hip dislocation, and the NHS advises that it’s not preventable.

However, certain risk factors are linked to an increased chance of a baby being born with congenital hip dislocation. These include:

Family History: where there is a family history of hip problems

Gender: females are more likely to have the condition than males
Breech Birth: if the baby is born in the breech position (born bottom or feet first)
Multiple Births: if you are expecting twins or multiple births
Prematurity: if your baby is born prematurely
First Baby: if it’s your first baby.

If your baby is at risk of being born with hip dislocation, your doctor/midwife may advise you of this during your antenatal care. However, as there is no way of being sure of this before the baby is born, the doctor or midwife will ensure that your baby’s hips are examined immediately following birth.

Diagnosing congenital hip dislocation

A prompt diagnosis gives the baby the best chance of recovering and enjoying a normal range of motion in their hips. Babies should be checked for signs of hip dislocation as part of their routine care.

Your baby will be checked early for signs of hip dislocation. Usually, the first check takes place in the hospital, very soon after delivery. A doctor or midwife should check your baby’s hips within 72 hours after birth. This is part of the newborn examination and shouldn’t cause your baby any discomfort. The person performing the test will gently move baby’s hips to check for early signs of hip dislocation, such as hip joint instability. Your healthcare professional should also check how the baby was delivered and ask if hip dislocation runs in your family.

This is a routine examination. It would be negligent of your care providers not to carry out the examination around the time of your baby’s birth. You should be told if there are any abnormal findings. If a problem is identified during the check, you should be advised of the following steps, and action should be taken to make a firm diagnosis and to rectify the problem.

Your baby’s hips should also be checked at the 6 – 8 week post-natal check. This is a standard check to make sure your baby is healthy. It’s another opportunity for doctors to diagnose hip dislocation, which may not have been evident at the time of your baby’s birth.

If the doctor identifies a possible problem, they may refer your baby for more tests, such as an x-ray or ultrasound scan.

The checks are in place to diagnose hip dislocation early and start treatment as soon as possible.

Signs and symptoms of congenital hip dislocation

The early checks of a baby’s hips are designed to help ensure early diagnosis of hip dislocation.

However, hip dislocation may be diagnosed later in your child’s development as they may not show obvious signs at their first check-ups. The NHS states that parents should contact their GP if they notice that their baby:

has restricted movement in one leg or both legs
has a clicking or popping sound when moving their legs
has one leg which seems longer than the other
has uneven skin folds on their buttocks/thighs
lets one leg drag behind the other when they crawl
develops a limp, walks on their toes or seems to have an abnormal gait.

Treatment for congenital hip dislocation

Pavlik Harness: A soft brace to correctly hold the baby’s hips while the joint develops.

Casting: In more severe cases, a baby may be placed in a full-body cast (spica cast) to maintain the hip in the correct position.

Surgical Treatments: In cases where non-surgical methods do not work or if the child is older, surgery may be necessary. This can involve realigning the hip joint.

Early diagnosis and intervention significantly improve the prognosis, reducing the likelihood of future mobility issues and the need for more invasive procedures.

Congenital hip dislocation terminology

Below is a helpful glossary of terms you might hear about congenital hip dislocation.

Where appropriate, these terms are explicitly explained in the context of congenital hip dislocation.

Congenital: a condition that a baby is born with.
Dysplasia: abnormal development of tissue (such as bones and muscles) or an organ. In the case of congenital hip dysplasia, it means abnormal hip joint growth.
Dislocation: an abnormal separation of a joint. Congenital hip dislocation may mean partial or total dislocation of the hip joint.
Congenital hip dysplasia/dislocation is when the ball of the baby’s femur does not properly sit within the hip socket. The extent of hip dislocations varies.
Hip Subluxation is when the hip joint is partially, but not fully, dislocated. This happens when the femur ball does not entirely fit within the hip socket.

Disclaimer
All content is provided for general information only and should not be treated as a substitute for the medical advice of your doctor, any other health care professional or for the legal advice of your lawyer. Tees is not responsible or liable for any diagnosis made by a user based on the content of this site. Tees is not liable for the contents of any external internet sites listed, nor does it endorse any service mentioned or advised on any sites. Always consult your GP if you’re concerned about your health and your lawyer for legal advice.

Update: Addenbrookes paediatric surgeon suspended after children left with injuries

Posted on 26 March 202522 April 2025 by Sarah O'Sullivan

At Tees, we are shocked and saddened by the news that a specialist paediatric surgeon at Addenbrooke’s Hospital in Cambridge has been suspended following a review.

BBC News has reported that an investigation uncovered nine medical negligence cases where children had been left with injuries affecting their quality of life following complex hip surgery procedures. These injuries have had a lasting impact, requiring further medical treatment and affecting mobility.

It has now been revealed that the review will assess treatment given to 700 patients who had planned operations and another 100 who had emergency treatment. Although the surgeon specialised in children’s surgeries, they also carried out emergency orthopaedic procedures on adults.

Cambridge University Hospitals Chief Executive, Roland Sinker, has confirmed that an external review will take place into the medical treatment carried out by the surgeon at the hospital. He also stated that reports have been made to the General Medical Council, NHS England, and the Care Quality Commission.

Andrew Kennedy KC has been appointed by the trust to chair a panel of expert clinicians to undertake the external review.

The trust has confirmed that concerns about this surgeon were raised 10 years ago in 2015, and that their clinical practice was restricted last year as a precautionary measure.

While the full details of the investigation have not been made publicly available, the suspension raises serious concerns for those patients who may have been treated by this surgeon, potentially affecting their health and well-being.

For many patients, undergoing surgery or treatment from a medical professional is a deeply personal experience. When that trust is broken, the consequences can be both physically and emotionally devastating.

This news is both shocking and heartbreaking for the children and families who are affected. It is crucial that patients and families receive the support they need to obtain answers and where necessary access any follow up treatment and rehabilitation.

About Tees
We at Tees are ideally placed to assist families who may have been affected and have already been approached by some who may have been affected.

With years of experience in medical negligence claims, we are well-equipped to navigate the complexities of these cases, ensuring that patients and their families receive the support and justice they deserve. We understand the profound impact that medical negligence can have, both physically and emotionally and our team is here to provide expert guidance.

Alarmingly, this news comes in the wake of the recent exposure of the practices of Mr. Jabbar, an orthopaedic medical professional at Great Ormond Street Hospital. We are already supporting families affected by the shocking failures in medical care linked to Mr. Jabbar.

Employment law update: Statutory limits and wage increases from April 2025

Posted on 25 March 20251 April 2025 by Sarah O'Sullivan

The Government has published The Employment Rights (Increase of Limits) Order 2025, confirming key updates to statutory compensation limits and employment-related payments. These changes, many of which come into effect from 6 April 2025, will impact employers and employees across the UK. Here’s what you need to know:

Statutory cap on a week’s pay

From 6 April 2025, the statutory cap on a week’s pay—used to calculate redundancy pay and the basic award in unfair dismissal cases—will rise from £700.00 to £719.00.

This change increases the maximum basic award for unfair dismissal claims to £21,570.00 (calculated as 20 × £719 × 1.5).
The maximum compensatory award for unfair dismissal will also increase, moving from £115,115.00 to £118,223.00.

Statutory redundancy pay

From 6 April 2025, the maximum amount of statutory redundancy pay an employee can receive also increases due to the updated weekly cap:

Redundancy pay is calculated based on age and length of service:

Half a week’s pay for each full year of service under age 22.
One week’s pay for each full year of service between ages 22 and 40.
One and a half weeks’ pay for each full year of service aged 41 and over.

The maximum number of years that can be taken into account remains 20.

This means the maximum statutory redundancy payment will also be £21,570.00.

April 2025: Other key rate changes

National minimum wage and national living wage

Effective from 1 April 2025, the following new hourly rates apply:

Age 21 and over (National living wage): £12.21 (up from £11.44)
Ages 18–20: £10.00 (up from £8.60)
Ages 16–17: £7.55 (up from £6.40)
Apprentices: £7.55 (up from £6.40)
Accommodation Offset: £10.66 per day (up from £9.99

Statutory sick pay (SSP)

From 6 April 2025:

SSP increases from £116.75 to £118.75 per week
The minimum earnings threshold to qualify rises to £125.00 per week (up from £123.00)

Family friendly payments

Also taking effect 6 April 2025, the weekly maximum rate for the following statutory payments increases from £184.03 to £187.18, or 90% of average weekly earnings if lower:

Statutory Maternity Pay (after the first 6 weeks)
Statutory Paternity Pay
Statutory Shared Parental Pay
Statutory Adoption Pay (after the first 6 weeks)
Statutory Parental Bereavement Pay

The earnings threshold for these payments also rises to £125.00 per week.

Maternity Allowance will similarly rise to a maximum of £187.18 per week, provided eligibility criteria are met.

Pending: 2025 Vento band updates

At the time of writing, the updated Vento bands (used in discrimination claims for injury to feelings awards) have not yet been announced. These are expected by the end of March 2025 and will also take effect from 6 April 2025.

A note on inflation

The £19.00 increase to the weekly pay cap in 2025 is notably smaller than in previous years (compared to £72 in 2023 and £57 in 2024), reflecting the recent decline in inflation. Employers should still review and update internal policies and redundancy packages in line with the new limits.

Our team can help

These updates impact both employers and employees, particularly in cases involving redundancy, dismissal, or family-related leave. Our employment law specialists at Tees Law are here to guide you through these changes and ensure your workplace policies, contracts, and practices are compliant and up to date.

Whether you’re navigating a redundancy process, reviewing contracts, or managing a tribunal claim, our expert team is here to support you every step of the way.

Get in touch with our Employment Law team for tailored legal advice.

Raising awareness of childbirth trauma

Posted on 24 March 20251 April 2025 by Sarah O'Sullivan

Bringing a child into the world should be a joyful time for mothers and their families, but sadly childbirth is not always such a positive and life-affirming experience.

Birth Trauma Awareness Week (14th – 20th July 2025), an initiative from The Birth Trauma Association (BTA), highlights the issues faced by mothers who have suffered a traumatic birth.

A difficult birth can be a traumatising event for new mothers. It can effect mental and physical health, and a mother’s ability to bond with her baby. Sadly, it’s all too common for women to experience birth trauma. One woman’s account of her traumatic birth experience was recently shared over 90,000 times on social media – with many more similar stories on the web.

How we can help

Many mothers suffering from postnatal PTSD are unaware that they may be able to make a claim for negligent treatment received during childbirth. We have a strong track-record of helping women who have experienced birth trauma. We can help them get answers about what went wrong, as well as financial compensation. We’ll talk through with you what happened in your case, and offer you the advice you need.

Call our Medical Negligence experts on 0800 015 1165, for a free, confidential, no obligation chat, or fill out our online enquiry form and we’ll let you know how we can help.

What is birth trauma?

Trauma can result from a range of events experienced during childbirth and postnatal care. They include:

Poor or negligent treatment by staff
Inadequate pain relief
High levels of medical intervention
Emergency deliveries
Unplanned caesarean sections or other medical procedures
Loss of dignity and control
Stillbirth or birth of a damaged baby (a disability resulting from birth trauma).

Mothers can also experience trauma through feeling that their concerns were not listened to, acted upon, or taken seriously.

According to research from the BTA, up to 20,000 women a year have a traumatic birth experience. Many go on to suffer long-lasting impacts on both their physical and mental health. And it’s not just the mothers involved who suffer: partners can also experience post-traumatic stress disorder after witnessing a traumatic birth. Clearly, this can be a major problem for families, and one that currently doesn’t always receive the attention and resources it needs.

One of the reasons many mothers suffer in silence is that they feel they have no right to feel traumatised if they leave hospital with a healthy baby. Often, women who do come forward are misdiagnosed or find that their symptoms are not taken seriously. As a result, many mothers suffer long after the birth of their children – and they don’t receive the treatment they deserve.

Birth Trauma Awareness Week

Patient groups, including the BTA, are concerned that the NHS is failing to make improvements in maternity services, and that cases of negligence or poor treatment are too often being swept under the carpet.

A report conducted at the beginning of the year by the National Childbirth Trust found that a chronic shortage of midwives across the UK left many women feeling unsafe and frightened during childbirth, and reported a marked increase in ‘red flag’ events. A red flag problem is defined as a warning sign that something may be wrong with midwifery staffing.

Birth Trauma Awareness Week aims to highlight the issue of traumatic birth and postnatal Post Traumatic Stress Disorder (PTSD). The BTA offers support to women who are suffering from the after-effects of a traumatic birth, and actively campaigns to change those practices that contribute to postnatal PTSD.

What to do if things go wrong

Many mothers report feeling that their poor experiences don’t matter, and they should put the memories of a difficult delivery behind them. However, that is easier said than done, and PTSD is now widely recognised as a very serious and often debilitating complaint that deserves proper investigation and appropriate treatment.

Birth trauma also includes a number of physical complications during childbirth. For mothers, one of the most common issues is tearing during delivery. Tears vary in severity, and if they’re not identified quickly and dealt with effectively, they can cause long-term problems. Due to the nature of this physical trauma, mothers can experience issues in their relationship, return to work and their everyday lifestyle.

As there is currently no routine follow-up of mothers who have suffered traumatic births, if you have suffered physiological and psychological reactions following childbirth, your first step should be to make an appointment with your GP. Current NHS guidelines recommend cognitive behavioural therapy (CBT) which can offer help with psychological problems in some cases.