Employment Law Archives

Lessons for UK employers from Amazon’s return-to-office mandate

Posted on 16 October 202421 March 2025 by Sarah O'Sullivan

Navigating the new norm

Amazon’s bold decision to compel all employees back to the office five days a week starting next year has stirred considerable debate. While the move signals a return to pre-pandemic norms, it also represents a broader philosophical and operational shift for companies worldwide. For UK businesses, this development prompts contemplation on balancing operational efficiency, legal obligations, and employee well-being.

The conundrum of contractual clarity

At the heart of Amazon’s mandate lies a fundamental question: How do employers transition away from the flexibility granted during the pandemic? Looking at the employment contracts are important in this context. Many employees were granted flexible working arrangements either informally or via alterations to their contracts during this time. Additionally, it isn’t just about what was written, but also about the implicit understandings that may have developed during a time of global crisis. Employers must tread cautiously, ensuring any shift respects both legal and moral bindings. It invites a nuanced approach—one that balances legal compliance with the expectations of a workforce that has tasted flexibility and may feel aggrieved or even discriminated against if they are asked to do something that has not been the norm for a period.

The necessity of dialogue: Listening as an operational strategy

Open communication with employees is something to be encouraged—a critical yet sometimes overlooked cornerstone of organisational change. Consulting employees about such substantial shifts isn’t just a legal formality; it’s an opportunity to forge a deeper connection.

Meaningful dialogue can unearth insights, prompt innovation, and even identify potential pitfalls early. It shifts the narrative from mere compliance to collaboration, transforming the potential friction of policy changes into a symbiotic evolution.

Health and safety redefined

Amazon’s move triggers fresh assessments of the workplace environment. The pandemic has indelibly altered the benchmarks for what constitutes a ‘safe’ workplace. Health and Safety, now more than ever, must encompass mental as well as physical well-being. This necessitates not just risk assessments but also a rededicated focus on mental health resources and a culture that fosters psychological safety. As employers, the challenge lies in evolving health and safety policies from checklists to cultural cornerstones.

The flexible working paradigm

Amazon’s announcement also brings into sharp focus the delicate dance around flexible working requests. The law permits employees from the first day in their roles the statutory right to request flexible working, yet this needs thoughtful navigation.

The discourse should lean towards the art of the possible—how can flexible working be shaped to benefit both the employee and the organisation? This isn’t just about managing refusals; it’s about genuine engagement and innovative problem-solving to harmonise operational needs with employee aspirations. The fact is that a return to a static, office-bound work model introduces significant practical challenges, from commuting logistics to work-life balance disruptions.

Employers might consider hybrid models or phased returns. Rather than this being perceived as a sign of indecision, an alternative view would be to judge this as a compromise of flexibility and a strategic virtue. By giving employees time to adjust, employers can ease potential frictions and cultivate a more resilient workforce for a sustainable future.

Regulatory reflection

Finally, any return to office mandates must align with evolving regulatory landscapes. The dynamic nature of Government guidelines necessitates ongoing vigilance and adaptability. In the event of future public health crises, businesses should be prepared to rapidly adapt its working policies to align with legal requirements and public health recommendations.

Knowledge is power. Employers need to stay abreast of changes, adapting policies proactively rather than reactively. This proactive stance isn’t just about avoiding legal pitfalls but about embodying a forward-thinking, employee-centric ethos.

Beyond the mandate

Amazon’s decision serves as a significant impetus for reflection. It challenges UK employers to look beyond mere mandates and towards a broader re-imagining of work. How can organisations blend operational exigencies with the evolved expectations and needs of their workforce? From contractual modifications and health and safety obligations to handling flexible working requests, businesses will need to navigate a range of legal and practical considerations. Successfully managing this transition requires careful planning, robust consultation, and a commitment to employee welfare.

By advocating for a thoughtful, compassionate, and strategic approach, employers can transform potential unrest into a unifying journey towards a reinvigorated workplace. The goal is not to return to the old normal but to craft a new one—a workplace that respects the lessons of the pandemic, embraces flexibility as strength, and champions a culture where both business and employees thrive in tandem.

Employment (Allocation of Tips) Act 2023: Key info for hospitality

Posted on 16 October 202421 March 2025 by Sarah O'Sullivan

From 1 October 2024, the UK hospitality sector was subject to the introduction of the Employment (Allocation of Tips) Act 2023. The legislation has been designed to facilitate transparency and fairness in distributing tips, gratuities, and service charges among workers. The law addresses long-standing concerns over tip management, particularly as the industry moves toward cashless transactions.

How this will impact employers and workers in the UK’s hospitality sector remains to be seen. Having conducted a first review of the Act (and the accompanying statutory Code of Practice), the key provisions include:

Obligation to pass on tips in full: Employers must pass on 100% of tips to their workers, with the only deductions allowed being those required by tax law.
Fair distribution: Employers must allocate tips fairly and transparently (my emphasis). Tips must be distributed within one month of being received.
Record keeping and written policy: Employers are required to maintain records of tip distribution for a minimum of three years. In addition, businesses where tipping occurs more than occasionally must implement and make available a written tipping policy.
Worker rights: Workers can request a copy of their tipping record to ensure compliance, and they may bring claims to the Employment Tribunal if they believe their tips are not being handled fairly.
Agency workers: The Act also benefits agency workers, with provisions ensuring that tips distributed by an employer are passed on to them.

Impact on employers

The Act introduces administrative responsibilities for employers, particularly those in hospitality businesses where tipping is a regular occurrence. Employers will now be required to keep detailed records of tip allocation. As tipping becomes more commonly effected via card or electronic transaction, businesses may need to absorb these processing fees, which could impact their bottom line.

Clear and accessible tipping policies will become obligatory to ensure all workers understand how tips are distributed. For many businesses, this will require developing and communicating new procedures.

Businesses that fail to comply with the legislation may face claims in the Employment Tribunal. Workers can request their tipping records and seek compensation if they believe they are being shortchanged, with compensation awards potentially reaching £5,000.

Impact on workers

For hospitality workers, this Act represents a significant step toward ensuring that tips are distributed fairly and transparently, addressing long-standing issues of employer tip retention. Workers will receive their tips in full, without deductions for administrative or processing costs. This is particularly important for low-wage workers who rely on tips to supplement their income.

Additionally, workers can request records showing how tips are allocated, ensuring transparency in the process. This accountability mechanism helps protect earnings and ensures that workers can challenge any perceived unfair practices. Further, in a departure from historical legislation, agency workers will now be entitled to receive tips fairly, adding a layer of protection for this often-vulnerable segment of the workforce.

Challenges and concerns

Although the legislation promises benefits for workers, both businesses and those working for them may encounter challenges. For establishments that rely heavily on tips, implementing new record-keeping systems and complying with statutory obligations will require careful planning and investment. While larger businesses may be able to absorb the costs associated with processing tips via card, smaller establishments might struggle. Some may even consider returning to a cash-only tipping policy, potentially reducing the amount of tips workers receive in the long term.

The Act mandates fairness but does not prescribe how tips should be allocated. When distributing tips, employers are encouraged to consider factors like seniority, hours worked, and performance. However, this could lead to disagreements among staff, particularly in businesses where tips are a significant part of total compensation.

Legal compliance and best practices

Businesses should consider the following steps:

Audit Current Tipping Practices: Review how tips are currently managed and make any necessary adjustments to comply with the new requirements.
Develop a Tipping Policy: Create a clear, written tipping policy that outlines how tips will be distributed. Ensure that this policy is communicated effectively to all workers, including agency staff.
Keep Detailed Records: Set up systems for recording how tips are allocated and distributed. Employers should be prepared to provide this information upon request from workers.
Consider Independent Troncs: Many businesses in the hospitality sector already use a “tronc” system to manage tip distribution. The Act allows the use of independent tronc operators, as long as they operate fairly. Using a tronc can help businesses manage the complexity of tip distribution and avoid disputes.

Looking forward

The Employment (Allocation of Tips) Act 2023 is a much-anticipated reform designed to introduce fairness and transparency to tipping practices within the UK’s hospitality sector. While imposing more responsibilities on employers, this legislation promises significant benefits for workers by ensuring they receive their earned tips without deductions.

Employers are encouraged to take proactive measures to prepare for these changes, set to take effect on 1 October 2024. By establishing clear tipping policies and practising transparency, businesses can mitigate potential disputes and promote a fairer workplace.

This legislation marks a significant victory for workers in ensuring fair treatment and protecting their income in an industry where tips form a vital part of their compensation.

Navigating collective redundancy: A look at the UK procedure through Dyson’s lens

Posted on 16 October 202421 March 2025 by Sarah O'Sullivan

Understanding Collective Redundancy in the UK

In the intricate web of corporate restructuring, the concept of collective redundancy stands out, especially in the context of UK employment law. It’s a process that isn’t just procedural but profoundly impacts the employees’ lives. For companies like Dyson, known for their innovation in household appliances, navigating through such terrain is as much about legal compliance as maintaining workforce morale and brand integrity.

Dyson’s Workforce Reduction: An Overview

Dyson is reducing its staff in the UK by approximately 1,000 positions as a component of a worldwide restructuring effort, effectively decreasing its British staff by over a quarter. On Tuesday morning, employees were informed of the job reductions, which are part of a strategy to decrease the company’s global workforce of 15,000 as part of an extensive cost-reduction initiative.

Addressing work issues across international boundaries is complex and beyond the scope of this article. Various practical challenges and differing methods are involved, and grasping these is crucial for carrying out a fair procedure that minimises the risk of potential litigation.

The UK’s Collective redundancy framework

At the heart of the UK’s approach to mass layoffs is the principle of “collective consultation.” This principle comes into play when an employer, such as Dyson, considers dismissing 20 or more employees within 90 days or less. It’s not merely a procedural step but a fundamental right—ensuring employees have a voice in the profound changes affecting their livelihoods.

Key legal precedent: The woolworths case

The European Court of Justice (ECJ) fleshed out these principles in the landmark USDAW v Ethel Austin case, known as the Woolworths case, in April 2015. The court clarified that once the threshold of 20 redundancies is crossed within a single establishment, employers are obligated to engage in collective consultations. Interestingly, this consultation privilege extends beyond those facing redundancy to any employees potentially impacted by the changes.

The procedure and timeframes

For large-scale operations like those Dyson might consider, two crucial timeframes are stipulated:

45 days of consultation for 100 or more dismissals
30 days for 20 to 99 dismissals

This advanced consultation period is not just about notifying employees; it is about engaging with them, discussing possible alternatives, and ensuring that the redundancy process is carried out as smoothly and humanely as possible.

Implementing Dyson’s redundancies

Given Dyson’s global footprint and its commitment to innovation, the company finds itself often at the crossroads of adapting its workforce to meet evolving market demands. If Dyson were to implement collective redundancies in the UK, engaging in a thorough collective consultation process would be imperative. Not only would this comply with legal requirements, but it would also reflect the company’s values by treating its workforce with respect and dignity during challenging times.

Dyson will need to openly discuss the reasons behind the potential redundancies, explore alternatives with employee representatives, and ensure that the process is transparent and fair. This could involve looking into options such as redeployment within the company, voluntary redundancy packages, or other measures to minimise the impact on its employees.

Potential pitfalls if the process goes wrong

Failure to consult correctly can have profound financial implications for a company, emphasising the importance of adhering to the specific legal requirements for collective consultation.

In a UK redundancy situation, if an employer does not meet the collective consultation requirements, employees can make a claim to an Employment Tribunal. If the claim is successful, the employer may have to pay the affected employee or employees compensation, known as a ‘protective award’. This compensation can be up to 90 days’ full pay for each affected employee.

Not only this, but improper handling of the consultation process can also lead to legal challenges. Employees might claim unfair dismissal, and the company could face financial penalties if found to be non-compliant with statutory requirements.

Impact on brand and employee morale

On a personal level, mishandling redundancies can inflict long-lasting damage on a company’s reputation. For a brand like Dyson, known for its innovation and quality, public perception can significantly impact consumer trust and loyalty.

This could also have a detrimental impact on retaining the remaining staff. Poor handling of such processes can demoralise survivors, affecting productivity and potentially leading to further employee turnover. Employees who see their former colleagues treated unfairly might start looking for more secure employment opportunities.

Furthermore, a sudden and poorly managed redundancy process can lead to gaps in operations, affecting service delivery and business performance.

Navigating the redundancy process with care

For a company like Dyson, navigating the collective redundancy process with care and consideration is crucial. Every step needs to be meticulously planned and executed. While the process is primarily about compliance, it also strongly reflects the company’s values and regard for its workforce. A transparent, fair, and well-managed consultation process not only minimises legal and financial risks but also upholds the company’s ethos, maintaining its reputation as a responsible employer.

Navigating the complexities of collective redundancy procedures in the UK presents a significant challenge, involving both a deep understanding of legal nuances and a compassionate approach towards the workforce. For businesses transiting through such a phase, the importance of following each step meticulously cannot be overstressed, given the potential financial, legal, and reputational repercussions of failing to meet the required standards.

The dialogues around collective redundancies, from consulting with employee representatives to addressing final decisions, highlight an employer’s commitment to fair and ethical business practices. While this guide serves as a primer for understanding the critical aspects of the redundancy consultation process and its importance, each situation’s unique characteristics can introduce specific complexities that deserve personalised attention and expertise.

Should you require additional insights, detail on legal obligations, or guidance on managing the collective redundancy process within your organisation, our team at Tees Law is here to provide comprehensive support. Navigating such pivotal moments requires not just legal acumen but an in-depth appreciation of the human elements involved. Contact Tees Law for further assistance and advice to ensure that your redundancy procedures are managed effectively, compassionately, and in full compliance with current UK employment law.

Employment Rights Bill 2024: Worker protections and productivity

Posted on 10 October 202421 March 2025 by Sarah O'Sullivan

Understanding the Employments Rights Bill 2024

The Employment Rights Bill 2024 (the Bill), unveiled on 10 October, introduces significant changes to the UK’s employment laws, marking the largest overhaul in decades. With 28 reforms, the Government has presented the Bill as aiming to enhance worker protections and boost productivity across the economy.

One of the standout changes is enhanced “day one” rights, including the right not to be unfairly dismissed (see also below). With this, there is a proposed introduction of a statutory probation period for new hires. This may allow employers more time to assess employee suitability notwithstanding the new day one rights being introduced.

Key Reforms: Day-one rights and probation periods

One of the most significant reforms is the removal of the existing two-year qualifying period for protection against unfair dismissal. This change ensures that an estimated nine million workers will benefit from protection from unfair dismissal as soon as they start a new role.

Additionally, the bill includes day-one rights for paternity leave, unpaid parental leave, and bereavement leave, building on the existing day-one right to maternity leave. This is a major change.

The Government will consult on a statutory probation period, with the current proposal favouring a nine-month limit. This extension, which has drawn mixed reactions from businesses and unions, is intended to provide flexibility for employers, while maintaining worker protections throughout the probation period. Full implementation of this probation reform is expected by autumn 2026, following further consultations.

End of exploitative practices and strengthened sick pay

The bill also takes aim at so called exploitative zero-hours contracts and controversial fire-and-rehire practices. These reforms are intended to provide more job security and protections, especially for workers on flexible or irregular contracts. For those on zero-hours contracts, the bill introduces the right to guaranteed working hours after a set period, ensuring greater financial stability for over a million workers.

Another key reform is the overhaul of statutory sick pay. Under the new provisions, workers will be entitled to sick pay from day one of illness, removing the previous three-day waiting period and the lower earnings limit. This change aims to provide immediate financial support for those who fall ill, especially lower-paid workers who previously did not qualify for statutory sick pay.

Flexible working and gender pay gap action plans

Recognising the changing dynamics of the modern workplace, the bill makes flexible working the default, unless employers can demonstrate that it is impractical. This reform is designed to support workers with caregiving responsibilities and improve work-life balance across various sectors.

Large employers will also be required to implement action plans to address gender pay gaps and support female employees, particularly through menopause. This measure is part of a broader push to promote inclusivity and diversity within the workforce.

Fair work agency and long-term reforms

The bill establishes a new “Fair Work Agency”, tasked with enforcing key rights such as holiday pay and sick pay. This agency will consolidate existing enforcement bodies, providing better guidance for employers while ensuring compliance with the new laws. The government has also outlined future reforms in its “Next Steps” document, including plans for a right to disconnect, mandatory reporting on ethnicity and disability pay gaps, and a move towards a simpler, two-tier worker status framework.

While the Employment Rights Bill boasts a sweeping set of reforms, many of the provisions will take time to implement, with some requiring further consultations before being fully enacted. Nevertheless, the bill represents a bold step towards improving worker protections and enhancing productivity in the UK economy.

For any questions, please contact us at employmentteam@teeslaw.com.

Employment Rights Bill 2024: Worker protections and productivity

Posted on 10 October 202421 March 2025 by Sarah O'Sullivan

Understanding the Employments Rights Bill 2024

Key Reforms: Day-one rights and probation periods

End of exploitative practices and strengthened sick pay

Flexible working and gender pay gap action plans

Fair work agency and long-term reforms

For more insights into how these changes may affect your business or employment, contact our Tees Law team. We’re here to provide legal guidance on navigating this new landscape and ensuring compliance with evolving employment laws. We’ll be running webinars and workshops on the new rules and how businesses can navigate these new waters over the coming weeks and months. Please get in touch with us if you are interested in these.

On Wednesday 6 November we are running a specific webinar around Employment Law changes that the Labour government has proposed. You can register your interest here: https://communications.teeslaw.com/27/178/landing-pages/rsvp-blank.asp.

For any questions, please contact us at employmentteam@teeslaw.com.

Navigating AI regulation in the UK: Essential insights for employers

Posted on 10 October 202421 March 2025 by Sarah O'Sullivan

This year, the European Parliament formally adopted the Artificial Intelligence Act (“AI Act”), the first comprehensive law designed to regulate AI on a broad scale across the European Union.

This landmark piece of legislation which was introduced on 13 March 2024 laid the foundation for AI governance within the EU but has left some UK employers wondering how these developments will influence the regulatory landscape, particularly as we observe the new long-term objectives for AI that have been proposed by our Labour Government.

The Current UK regulatory landscape

Last year on 3 August 2023, the Government released their AI Regulation White Paper which indicated that the UK had no plans to introduce a horizontal AI regulatory framework like the EU. Instead, the feedback received as part of the Government’s consultation on the policy suggested that the UK would lean more towards adopting a principles-based model that would allow existing sector-specific regulators to tailor AI regulations according to their respective industries. At present, this position remains unchanged, and it is likely that we will see AI-specific laws and regulations introduced in the UK in the not-so-distant future.

As the UK Government enacts its AI agenda, employers will have to navigate several considerations for effective AI regulation and compliance. Below, we have explored some of the essential areas that employers should focus on as they look to integrate AI systems into their businesses.

Sector-specific regulation

Employers should familiarise themselves with how AI regulations may differ across various industries. Each sector may be guided by unique regulatory bodies that impose different requirements for AI use, and which would necessitate a more proactive approach to compliance. In addition to this, businesses should conduct their own assessment of AI technology to ensure that it adheres to existing regulations and anticipate any future legislative changes.

AI development

The Government has emphasised the importance of responsible and ethical AI use. Employers will need to ensure they engage in best practices around transparency, accountability and inclusivity where AI is deployed, to mitigate potential risks (where possible) and maintain public trust. This may involve implementing new policies and guidelines for the ethical deployment of AI technologies.

Impacts on employees

As AI systems evolve, so do their effects on the workforce. Employers should understand the implications of AI on jobs and employment dynamics. Preparing the workforce for reskilling and deploying AI in underserved areas of business will be crucial for maintaining a productive and efficient working environment. Earlier this year, The Institute for Public Policy Research estimated that roughly 11% of workplace tasks are exposed to automation through existing generative AI, and that this could rise to 59% of tasks in the second wave of AI adoption as technologies develop to handle increasingly more complex processes.

Data privacy and security

With AI’s reliance on handling vast amounts of data, compliance with existing data protection regulations (such as the General Data Protection Regulations) is highly important. Employers must ensure their AI systems are secure and responsible in their data usage and align with the latest best practices.

Monitoring regulatory changes

The AI regulatory landscape is continuously evolving. Employers should establish mechanisms to stay informed about upcoming regulations, guidelines, and industry standards that could impact their practices. This could involve, among other things, engaging with industry associations, regulatory bodies, and participating in relevant forums.

As employers look to navigate the evolving AI landscape, it is crucial that they adapt and remain compliant with the latest legal requirements. Company policies, hiring practices, and data privacy protocols should be reviewed periodically to reflect the changes to AI tools and technologies. Encouraging a culture of continuous learning by helping employees upskill and adapt to these changes can be an advantageous strategy and help equip staff with the knowledge to use AI responsibly and effectively.

Balancing innovation with regulation always requires a strategic approach. Businesses should consider using AI effectively whilst adhering to new legal and ethical standards to stay compliant and support a responsible and sustainable AI-driven future.

At Tees, we have specialist Employment Law experts with many years of experience who can help businesses navigate the complex and evolving AI landscape confidently and clearly.

Employment Rights Bill 2024: Tees Law prepares employers for key reforms

Posted on 10 October 202429 March 2025 by Sarah O'Sullivan

Tees Law acknowledges the significant impact of the Employment Rights Bill 2024 and the crucial changes it brings to the employment landscape. This bill, part of Labour’s “Make Work Pay” initiative, includes 28 key reforms designed to enhance worker protections and improve productivity across the economy.

Among the most impactful provisions is the introduction of a nine-month statutory probation period, replacing the existing two-year qualifying period for protection against unfair dismissal. This will give 9 million workers day-one rights to protection from dismissal, along with day-one entitlements to paternity leave, unpaid parental leave, and bereavement leave.

The bill also takes aim at practices, including zero-hours contracts and fire-and-rehire practices, providing workers with more job security. For those on zero-hours contracts, the legislation guarantees working hours after a defined period, offering much-needed financial stability.

Additional reforms include a transformation of statutory sick pay, which will now be available from the first day of illness, scrapping the previous three-day waiting period and earnings limit. The bill also makes flexible working the default, ensuring greater support for employees with caregiving responsibilities.

A new Fair Work Agency will be established to enforce these rights and ensure employers receive the guidance they need to comply with the new laws.

Rob Whitaker, Executive Partner of the Employment Team at Tees, commented:

“The Employment Rights Bill 2024 presents significant changes that employers should prepare to carefully navigate. With new provisions such as day-one protections, and the regulation of zero-hours contracts, this bill will require businesses to reassess their current practices to ensure full compliance and be ready for the changes. At Tees, we are committed to helping employers understand the implications of these reforms, guiding them through the compliance challenges, and ensuring they are prepared for the evolving employment landscape. While the bill aims to enhance worker protections, we believe it also offers an opportunity for businesses to reflect on working practices and promote a more stable and productive workplaces for business growth if managed with care.”

Though many of these reforms will take time to implement, with full adoption expected by Autumn 2026, the Employment Rights Bill 2024 marks a bold step towards a fairer, more productive workplace.

For any questions, please contact us at employmentteam@teeslaw.com.

What next for equal pay?

Posted on 6 September 202422 March 2025 by Sarah O'Sullivan

Landmark legal victory for next employees in equal pay case

Following a six-year legal battle, over 3,500 current and former Next employees have secured a major win in their Employment Tribunal complaints for equal pay. The ruling may result in Next paying up to £30 million in back pay. Despite the retailer’s intention to appeal, the decision could have wide-reaching consequences for other UK employers.

The wider impact on major retailers

This legal victory marks the first of its kind against a national UK retailer. Other major supermarkets, including J Sainsbury’s Plc, Tesco Plc, W Morrison Supermarkets Ltd, Asda Group Ltd, and Co-operative Group Ltd, face similar claims from 112,000 workers. If these claims succeed, the financial ramifications could amount to billions of pounds.

The basis of the claim: Pay disparity between shop and warehouse staff

The central issue in this case was the pay gap between predominantly male warehouse staff and mostly female shop staff. Next argued that wider market forces justified the disparity, maintaining that warehouse operators earned higher salaries due to industry standards. However, the Tribunal rejected this defense, stating that cost-saving measures did not justify the discriminatory effect.

Equal pay and the concept of equal value

A critical element in the case was the determination of whether shop and warehouse staff performed work of equal value. The Tribunal concluded that retail staff work was of comparable value to that of warehouse employees, leading to the decision that Next was required to provide equal pay.

Key factors in establishing equal value

Gender disparity: 77.5% of retail consultants were female, compared to 52% of warehouse employees being male.
Independent assessment: Equal value is determined through independent expert analysis, comparing the responsibilities, effort, and skill of both roles.
Tribunal’s role: Even minor differences in tasks can be disregarded if they are deemed insignificant in the overall comparison.

Lessons for employers: Mitigating equal pay risks

This ruling serves as a stark reminder for employers to assess their pay structures. Companies should ensure that roles of equal value receive equal pay, preventing the risk of costly litigation.

Practical steps for employers

Conduct regular pay audits: Review and compare salaries across different roles to identify disparities.
Ensure transparency: Maintain clear documentation on how pay decisions are made, using objective criteria.
Provide justifiable explanations: Base pay differences on legitimate factors such as experience, qualifications, and market rates.
Promote equal opportunities: Encourage career development for all employees, removing barriers to advancement.
Seek legal guidance: Consult legal professionals to ensure compliance with equal pay regulations.

The ongoing battle for Next employees

While the ruling is a significant milestone, the journey is far from over. With Next pursuing an appeal, employees face further delays and legal complexities. The case underscores the challenges of achieving equal pay justice and the importance of robust legal support.

Employers should view this ruling as a wake-up call to proactively address pay equality. Taking preventative measures now can mitigate legal exposure and foster a fairer, more equitable workplace.

For tailored legal advice on equal pay compliance, contact our team of experts today.

Employment law: Labour bring in the ‘right to disconnect and surveillance’

Posted on 9 July 202422 March 2025 by Sarah O'Sullivan

Labour’s proposed manifesto introduces two significant employment policies to address hybrid working challenges: the right to disconnect and protection from employee surveillance. These measures aim to ensure employees have a clear separation between work and personal life and are safeguarded from intrusive monitoring.

Right to disconnect: A solution to blur between work and life

With the widespread adoption of hybrid working, the line between professional and personal life has become increasingly blurred. Many employees feel pressured to respond to emails and attend to tasks outside their regular hours. Labour’s proposed right to disconnect policy seeks to combat this issue by restricting after-hours work communication.

International precedents

France: Introduced a right to disconnect in 2017, following a 2004 court ruling that protected an employee from dismissal for ignoring after-hours calls. Employers in France may face additional remuneration obligations if employees are required to work outside regular hours.
Ireland: Implemented a non-legally binding Code of Practice outlining best practices for employers, with non-compliance serving as evidence in relevant legal claims.

Unclear implementation plans

Labour has not yet specified whether the UK’s version of the right to disconnect would involve statutory restrictions or follow a code of practice. Regardless, businesses can proactively address the issue through clear hybrid working policies, ensuring mutual understanding between employers and employees.

Practical steps for employers

Establish clear communication expectations for hybrid and remote workers.
Respect employee preferences for traditional or flexible working hours.
Use scheduling tools to send emails during designated working hours.
Allow exceptions for critical business needs while maintaining transparency.

Protection from surveillance: Balancing security and privacy

Some employers have responded to hybrid working by increasing employee monitoring. While employers may have legitimate reasons for this, such as protecting sensitive information and ensuring productivity, surveillance raises privacy concerns.

Legal considerations for employee monitoring

Human Rights Act 1998 & Article 8 of the ECHR: Employees have a right to privacy, even in a professional setting. The ruling in Bărbelescu v Romania emphasised that courts must carefully assess employer monitoring.
Data Protection Laws: Monitoring involves the processing of personal data, making compliance with UK GDPR essential. Employers must ensure transparency, necessity, and proportionality when conducting surveillance.

Employer responsibilities

Justify monitoring: Employers should ensure any monitoring is reasonable and necessary.
Inform employees: Clear, transparent policies must explain what is monitored and why.
Data security: Access to monitoring data should be restricted and securely maintained.
DPIAs: Conduct Data Protection Impact Assessments (DPIAs) to evaluate privacy risks before implementing monitoring measures.

Labour’s approach to employee surveillance protections

Labour has committed to introducing protections against excessive employee surveillance. While specific details are lacking, the party has indicated that employers would be required to consult and negotiate surveillance policies with trade unions through collective agreements.

Best practices for employers

Engage employees and representatives in transparent discussions on monitoring policies.
Ensure data protection and privacy policies are comprehensive and up-to-date.
Regularly review monitoring practices to ensure legal compliance.

Preparing for policy changes

Labour’s proposed policies signal a growing emphasis on employee well-being and privacy in hybrid work environments. Employers can stay ahead by fostering transparent communication, implementing fair monitoring practices, and promoting work-life balance.

By proactively reviewing and adjusting their policies, businesses can ensure compliance with potential new laws while maintaining a positive and productive work culture. For tailored advice on adapting to these potential changes, consider consulting legal professionals specializing in employment law.

The end of Zero Hour Contracts: ‘Fire and Rehire’ no more

Posted on 3 July 202422 March 2025 by Sarah O'Sullivan

Labour has outlined significant employment law reforms, including the introduction of a single worker category, extending day-one rights, banning the practice of fire and rehire, and limiting the use of zero-hour contracts. These proposals could reshape employer-employee relationships across the UK.

Fire and rehire: What employers need to know

The controversial practice of “fire and rehire” made headlines in March 2022 when P&O Ferries dismissed around 800 workers. This tactic involves terminating employees and rehiring them on different, often less favorable, terms.

While fire and rehire is currently legal under UK employment law, employers must follow strict guidelines. Dismissals may be deemed fair if employers:

Engage in meaningful consultation: Employers should first consult employees and seek agreement on contract changes.
Demonstrate a sound business reason: Employers must have clear, evidence-backed justifications for the change.

Labour’s stance on fire and rehire

Labour has committed to banning fire and rehire practices. However, before this ban takes effect, employers should be aware of the government’s Statutory Code of Practice on Dismissal and Re-engagement, coming into force in July 2024. While the Code won’t prohibit fire and rehire, it will emphasize that it should be used as a last resort.

Risks of fire and rehire

Employers relying on fire and rehire practices face several risks, including:

Unfair dismissal claims: Employees may bring claims under the Employment Rights Act 1996.
Reputational damage: Poor handling of dismissals can harm brand reputation and employee morale.
Legal costs and disputes: Tribunal claims are costly, time-consuming, and disruptive.

To mitigate these risks, employers should prioritize transparent communication and consultation with employees to build understanding and reduce the likelihood of legal challenges.

Zero-hour contracts: Labour’s proposals

Labour has also promised to restrict the use of zero-hour contracts, which have faced criticism for their potential misuse by employers. Despite their flexibility, zero-hour contracts can leave workers without guaranteed hours or stable income.

What Labour plans to change

Curtailed use: While zero-hour contracts will not be completely banned, stricter regulations will apply.
Standard contracts: Workers with regular hours for 12 weeks or more must be offered a standard contract.
Worker choice: Labour claims workers can choose to remain on zero-hour contracts, but concerns remain that employers may pressure workers to do so.

Upcoming legislation on predictable work patterns

Regardless of Labour’s plans, employers should prepare for the Predictable Work Pattern Rights legislation, expected to take effect in September 2024. This will allow employees and agency workers to:

Request a predictable work pattern after 26 weeks of service.
Submit two applications within a 12-month period.

Best practices for employers

Employers are encouraged to consider alternatives to zero-hour contracts, such as:

Part-time contracts: Provide guaranteed hours for greater stability.
Annualised hours contracts: Offer flexible working patterns based on yearly commitments.
Fixed-term contracts: Suitable for seasonal work with clear end dates.
Overtime and training: Upskill existing staff to cover temporary or additional workloads.

By adopting fair and transparent employment practices, businesses can improve employee satisfaction, enhance their reputation, and reduce legal risks.

For further advice on how these changes may impact your business, contact our employment law team today.