Legal News

Business Minister Justin Madders has set out plans to double the period staff have to lodge most employment claims, outlined within a 59-page schedule of amendments to the bill. A six-month timeframe already applies for submitting equal pay cases and statutory redundancy claims. Several changes are far-reaching. One proposal would create a statutory probation period lasting three to nine months, linked to the section of the law that removes the current rule requiring two years’ continuous service before bringing an unfair dismissal claim. A further amendment would bar gig economy firms from relying on substitution clauses in their contracts, a common device used to sidestep higher pay and tax liabilities. Extending the deadline for claims was a policy advanced by the government during the general election campaign and is included in its ‘ Make Work Pay’ programme......

Zurich UK press release (14 November 2024) Almost a third (31%) of 1,000 neurodivergent adults surveyed said their job applications were rejected once they disclosed a condition such as autism, dyslexia, or attention deficit hyperactivity disorder. A further 28% reported being declined for subjective reasons, including their communication style or perceived fit within a team. The study, conducted by One Poll and published on 14 November 2024, also showed 27% received remarks about their capabilities, while another 25% said recruiters stopped responding after they revealed they were neurodivergent. Findings additionally indicated that 21% had been laughed at because of their condition, and 16% saw job offers withdrawn following disclosure. Consequently, nearly two thirds, 63%, of neurodivergent adults think employers view neurodiversity as a ‘red flag’, according to the UK division of Zurich Insurance Group Ltd......

Carnival plc (trading as Carnival UK) v Laura Hunter [2024] EAT 167 EAT Judge Martyn Barklem concluded that the employment tribunal was wrong to decide that, after Carnival plc removed five of its 21 team leader posts, the 16 remaining roles constituted ‘suitable alternative vacancies’ for Laura Hunter under regulation 10 of the Maternity and Parental Leave Regulations 1999, SI 1999/3312. Regulation 10 applies where, during an employee’s ordinary or additional maternity leave, redundancy means it is not practicable for the employer to continue to employ her under the existing contract of employment. In that event, the provision stipulates that, if a suitable vacancy is available, the employee is entitled to be offered—before her employment under the existing contract ends—alternative employment with her employer, the employer’s successor, or an associated employer, on a new contract of employment......

Equality ( Race and Ethnicity) Bill In October, the Labour government reignited its longstanding goal to require employers to disclose pay disparities across racial groups, resurrecting a plan shelved by the Conservatives as unworkable. The draft Equality ( Race and Ethnicity) Bill would compel organisations with over 250 employees to publish ethnicity and disability pay gaps, mirroring gender reporting. It will need further regulations and likely will not arrive until the latter part of Labour’s five-year term. Lawyers warn this sweeping framework will pose fresh tests for employers: from methods for gathering and submitting data to government, to managing employee and stakeholder reactions to the process—and to any disparities exposed. Many had anticipated ethnicity reporting would come first, as some major employers already gather those figures voluntarily. Yet even ethnicity reporting—more familiar than the uncharted task of calculating disability gaps—is far more...

The Worker Protection ( Amendment to Equality Act 2010) Act 2023 Coming into force on 26 October 2024, this Act requires employers to take ‘reasonable steps’ to prevent sexual harassment or face a 25% uplift in employment tribunal awards. It also hands the Equality and Human Rights Commission ( EHRC) new powers to step in where employers breach that duty. On 10 October 2024, the government signalled, through the Employment Rights Bill, an intention to raise the bar to ‘all reasonable steps’. Lawyers say Labour has set such a demanding threshold that few employers would risk relying on it as a defence. That reform is not anticipated to apply until 2026 at the earliest. Even so, EHRC guidance published in September 2024 confirms that employers will be judged against a tougher benchmark than many had expected. The regulator has also warned it stands ready to act...

The Equality and Human Rights Commission ( EHRC) has issued updated guidance, urging employers to act proactively to fulfil their duty to prevent sexual harassment in the workplace, a requirement that takes effect in October. Assess potential risks Decide on practical steps they can implement Routinely review the measures put in place to tackle sexual harassment The EHRC will be able to take enforcement action against organisations and, where it finds breaches of the law, may issue an unlawful act notice or seek a court injunction. The EHRC, which promotes equality and non-discrimination laws, also states that employers must create a ‘robust anti-harassment policy’ and communicate it widely. This policy should cover instances where clients or customers sexually harass members of staff......

Meanwhile, Amazon staff are set to seek formal recognition for their union, in a battle likely to rank among the year’s most scrutinised industrial disputes. Law360 surveys what to watch for through the rest of 2024. The Employment Rights Bill Employers should, lawyers say, start preparing now for the sweeping legislation pledged by the new Labour government within its first 100 days in office. Advisers report they are already guiding clients on plans to legislate ‘day one’ rights to sick pay, parental leave and—perhaps most importantly—the ability to bring an unfair dismissal claim. Measures defining what workers can expect from their first day of employment, alongside other entitlements, are expected by mid- October 2024. Addressing businesses considering the dismissal of difficult employees, Yvonne Gallagher, a partner at Harbottle & Lewis LLP, urged them to act promptly rather than wait for the autumn. The...

The IFS cautioned that roughly five to seven million savers—amounting to as much as 40% of private‑sector workers—are on course to reach retirement with inadequate pension provision unless the government accelerates reforms to automatic enrolment legislation. Yet the IFS also noted that across‑the‑board rises in minimum pension contributions could be a tougher proposition for those on lower incomes. Nonetheless, numerous commentators continue to advocate universal increases to minimum contribution thresholds. Far too many private‑sector employees still appear set to end up......

Signature Litigation LLP v Ivanishvili [2024] EWCA Civ 901 What are the practical implications of this case? The Court of Appeal used this case to restate a well-known worry: as Lord Justice Coulson observed at [22], the 1974 Act has been widely criticised for not being updated to reflect modern practice. When the SA 1974 came into force, conditional fee agreements ( CFAs) were unlawful, and retainers were largely based on an ‘entire contract’ model, allowing costs to be fully quantified for any period while litigation was ongoing. That is not the position with conditional fee retainers, where the total costs payable (covering all additional liabilities) cannot be fixed until the litigation has concluded. Accordingly, solicitors should note that under any CFA—even a ‘discounted CFA’—interim invoices will not be final statute bills if an additional fee is intended to be added to that invoice once the case...

The solicitors watchdog has confirmed, after consultation, that contributions from individual solicitors and the firms it oversees will rise for the first time in five years. For the year beginning 1 November 2024, individual payments into the compensation fund will be £90, up from £30 the previous year, while firms will contribute £2,220, up from £660. In a statement, SRA chief executive Paul Philip said the fund is vital to protecting the public and maintaining confidence in the profession. The regulator had consistently reduced payments to the fund over the last five years. However, an increase is now required due to an exceptional volume of recent claims following significant interventions, he said. The fund has consequently faced mounting strain as the SRA has needed to step in much more often and close down additional firms to safeguard the public in actions referred to as...

The survey gathered input from 14 of the 28 insurers listed by the Solicitors Regulation Authority ( SRA) for the 2024 indemnity year. Conducted anonymously via Qualtrics and in partnership with the International Underwriting Association, it found that 38% of respondents foresaw potential difficulties at renewal, although the exact tally was not provided. Browne Jacobson reported that solicitors began considering leaving the PII market after the Court of Appeal’s January 2024 decision in Discovery Land Co LLC and others v Axis Specialty Europe SE. The firm noted that the ruling heightened worries about tightly drawn aggregation of claims under the SRA’s minimum terms and conditions, which influence the limit of indemnity. Ed Anderson, a partner at Browne Jacobson who deals with PII, ......

Make work pay The party has already moderated several promises and signalled it will seek views from the public and employers before introducing fresh laws. Yet, by folding the whole 26-point plan to 'make work pay' into its manifesto, the new government expects its bills to clear the House of Lords without obstruction. David Hopper, a partner at Lewis Silkin LLP, noted that employers are already preparing for what lies ahead. He argued that, since the reforms largely carry no direct cost to the government, legislating to expand employment rights could provide quick, straightforward wins. Delivering the entire package over the next five years, he added, would amount to a radical shift in employment rights. Labour's programme includes: ' Day one' rights to sick and parental leave Stricter redundancy rules Greater flexibility entitlements for workers New reporting...

Background In September 2021, the Labour Party unveiled its programme for working people, titled ‘ A new deal for working people’, at the Labour Party Conference. Since then, the paper has been revised multiple times, culminating in the final text— Labour’s Plan to make work pay: Delivering a new deal for working people (the New Deal)—issued shortly before the manifesto’s publication in June 2024. The Labour Manifesto confirms the New Deal will be delivered in full. What has the Labour Party promised? Labour has committed to: Table legislation in Parliament within the first 100 days in office, including a new Employment Rights Bill Advance further primary and secondary legislation within the same 100-day period, consulting fully with employers, trade unions and workers on practical implementation before laws are passed Undertake a review of parental leave within the first year of a Labour...

SRA board clears plan to regulate CILEX members On 1 July 2024, the SRA announced its board had approved proposals to oversee Chartered Institute of Legal Executives ( CILEX) members, following more than two years of talks and negotiation. The move is not final, though. In a statement issued the same day, the SRA explained that, should CILEX choose to proceed, any redelegation would still require sign‑off from the Legal Services Board. The board’s resolution could mark the culmination of a process set in motion in January 2022, when CILEX first asked the SRA to take over from its own dedicated regulator, CILEX Regulation Ltd ( CRL). Since then, at least four separate consultations have been carried out and the LSB has undertaken an investigation. In reflecting on the change since CILEX approached the SRA, Anna Bradley, the SRA’s chair, said the...

When it takes effect, section 17 of the Act will render void any clause that seeks to bar a victim from sharing information about criminal conduct with law enforcement, professional advisers, regulators, or close family members. The measure was expedited ahead of Parliament’s dissolution on 30 May 2024, following a Ministry of Justice announcement on 28 March 2024 targeting the misuse of nondisclosure agreements ( NDAs). It coincides with intensifying regulatory and political attention on how NDAs are employed. Below, we outline the key context and emphasise that anyone drafting or relying on NDAs should evaluate their suitability and reach on a case-by-case basis. Increased scrutiny on NDAs There are numerous proper purposes for NDAs, such as safeguarding commercial, sensitive, or confidential material that is being shared. NDAs have also traditionally been included in settlement agreements connected to the ending of employment for a range of...

Nearly a dozen regulatory measures for the industry have been paused as the civil service enters the pre-election purdah period. Although the two main parties appear broadly aligned on many pensions policy questions, differences persist, and voices across the sector are urging concrete manifesto commitments. “ A key uncertainty concerns the destiny of the recently overhauled pensions tax regime, alongside several other unresolved ideas, including the Chancellor’s Mansion House package,” noted Helen Ball, a partner at law firm Sacker & Partners LLP. “ At present, it is far from certain how many will make it through the formation of a new government.” Mansion House Over the past year the pensions landscape has shifted markedly and visibly, driven by a strong political impetus, most notably, for retirement savings vehicles to channel more capital into growth assets such as start-ups and...

Attracting and retaining talent To be credible in the legal arena, firms must draw in and hold on to talent, maintain a balanced mix of ‘finders, minders and grinders’ (a practical ladder of enterprising senior partners, painstaking, quality‑led managers, and industrious junior teams) with an even spread across these roles, and vie in the salary wars sparked by the growing arrival of US practices in the UK market. This momentum has driven a shift towards remuneration systems that can address these pressures more effectively. As a result, legacy approaches are being reconsidered and adapted to current market realities. Firms should evaluate overall contribution holistically and retain the agility to recognise and pay the stars they wish to keep. They must also pare back profit allocation where sustained underperformance shows a partner’s practice is trending downwards and ultimately burdens the firm’s finances. While lockstep...

Findings from Social Market Foundation show that nearly three quarters of the 1,618 employees polled want the option for a single pension pot to accompany them each time they move job. When questioned about lifetime provider models, 73% of those aged 35 to 44 back the approach, and 69% of participants aged 45 to 54 express support as well, the study reports. In November 2023, the Department for Work and Pensions proposed changes that would allow staff to contribute to one retirement pot, rather than routinely opening a fresh scheme whenever they switch roles. That proposal differs from the prevalent pattern in which workers accumulate a more cumbersome mix of multiple pension pots as they change employers. The government has encountered opposition from private sector to these plans......

Justice Secretary, Alex Chalk, has said the move is intended to end the 'murky world of non-disclosure agreements' Under plans to curb misuse of NDAs, those bound by confidentiality clauses would still be free to raise alleged criminality with key professionals and crime-fighting bodies. On 28 March 2024, Alex Chalk set out an ambition to end the ‘murky world’ where such agreements are used to conceal wrongdoing, adding that the reforms will make clear in law that gagging orders cannot lawfully be wielded against victims to block justice or silence them. Lawyers and the police Medical practitioners and counsellors Advocates and other organisations that investigate crime The change will not bite immediately; legislation will be brought forward ‘when parliamentary time allows’, the Ministry of Justice said. The Mo J also confirmed the bill will not capture NDAs signed before it secures royal...

Prevention of sexual harassment in the workplace Spurred by the Me Too movement, tackling sexual harassment at work has moved up the agenda for a range of sectors and industries, for employers generally, and across political parties. In turn, employers have shifted culturally in how they perceive and address allegations, responding in a far more proactive and forceful way... While clear strides have been made, the government (and any future Labour government) accepts there is more to achieve. The data bears this out: in 2023 the Fawcett Society reported that 40% of women encounter sexual harassment in the workplace... To drive more active prevention by employers, the government has passed the Worker Protection ( Amendment of Equality Act) Act 2023. This legislation creates a new duty on employers to take ‘reasonable steps’ to stop the sexual harassment of their employees, as defined by the Equality Act 2010,...