Legal Practice Notes

FORTHCOMING CHANGE : On 3 December 2025, Torsten Bell set out proposals to produce guidance on fiduciary duties, clarifying how broader considerations can be incorporated within existing obligations, including system-wide risks like climate change and the enduring effects of investments on members’ outcomes. The guidance will also explain how trustees may reflect members’ views, and will restate the requirement to weigh all financially material factors, while remaining aligned with acting in members’ best interests. Efforts to give this guidance statutory force via the Pension Schemes Act 2026 did not succeed, but the government confirmed it remains committed to developing it. For more detail, see the DWP Parliamentary response of 19 January 2026 and the House of Lords Hansard debate of 26 March 2026. Meaning of ‘ ESG’ and ‘stewardship’ ESG The expression ‘...

This Practice Note outlines what environmental, social and governance ( ESG) issues are and how they may influence property disputes. What is ESG? Environmental, social and governance ( ESG) is a collective label for the environmental, social and governance dimensions of an organisation’s activities, namely: Environmental factors: concerning the effects on, and from, the natural environment, including carbon footprint, energy efficiency and pollution arising from operations Social factors: examining human rights risks across the organisation’s supply chain, including modern slavery Governance factors: addressing how an organisation is governed, including executive pay and board diversity For further details on the elements of ESG, see the diagram below. ESG reporting obligations can be mandatory or voluntary depending on the jurisdiction in which the organisation operates, the markets it serves and its investor arrangements. In the UK, the maturity and breadth of ESG laws are...

CSR and ESG Businesses and legal advisers use terms such as ‘responsible/sustainable business’, ‘corporate responsibility’ ( CR), ‘corporate social responsibility’ ( CSR), and ‘environmental, social, governance’ ( ESG) in a range of settings. Broadly, they signal organisations acting responsibly in their routine operations. More companies now recognise that simply complying with national, state and local rules may not sufficiently guard against legal, regulatory or reputational risk, and that failing to meet escalating expectations can have financial consequences. CSR is centred on accountability, though its effects have historically been difficult to assess. This is shifting within ESG, where outcomes are increasingly quantifiable. For more on the terminology and the move from CSR to ESG, refer to Practice Note: Sustainable business and environmental, social, governance ( ESG)—introduction for companies and advisers. Corporate governance Corporate governance is the framework through which companies are led and...

Itemised pay statements This Practice Note outlines the entitlement of a worker (or, for wages or salary relating to a period of work that started before 6 April 2019, an employee) to receive an itemised pay statement under section 8(1) of the Employment Rights Act 1996 ( ERA 1996) (see: Itemised pay statements below). It also addresses: whether online payslips comply with the requirements of ERA 1996, s 8 (see: Online payslips below) what details ought to be included in a pay statement references to the employment tribunal pay records For tips, gratuities and service charges that are paid to the employer, or over which the employer has control or significant influence (qualifying tips), the employer must keep a record at the place of business of all qualifying tips received, together with their allocation and distribution to each worker, and workers are...

This Practice Note considers the equity of exoneration: what it is, and when and how it operates. It does not address how the trustee in bankruptcy (trustee) identifies and values any interest they may hold in property, which assets vest in them, how any such interest is realised, or equitable accounting. For further reading, see Practice Notes: Protecting a trustee in bankruptcy's interest in property following their appointment Equitable accounting—how it works in practice Possession and sale applications in respect of a bankrupt's family home What is the equity of exoneration? The equity of exoneration is an equitable remedy that may apply where jointly owned property is mortgaged or charged to raise funds to meet one co-owner’s debts, or otherwise for their sole benefit. In such a case, absent evidence to the contrary, there is a presumption that the...

What is an equity derivative? An equity derivative is a financial contract that takes its price or value from the behaviour of a share-based asset or another equity-linked variable, providing economic exposure to that performance. Such derivatives can be dealt on-exchange or over the counter (see further details below). They can also be structured as funded or unfunded. Funds and investors chiefly employ them for speculation, while end users and banks use them as hedging tools for commercial purposes. They also serve numerous other purposes, which will be discussed in more detail below. Types of equity derivative instruments Equity derivative instruments fall into the following five principal categories: Options — the two core varieties are puts and calls. A put gives its holder the right to sell an underlying asset (for example, shares) to a counterparty at an agreed price on a specified future date. A call grants its holder the...

What is an equity derivative? An equity derivative is a financial instrument whose price or value is linked to the performance of an equity asset or another equity‑related variable. Such instruments may trade on an exchange or over the counter (see more below). They can be structured as funded or unfunded. Equity derivatives are used chiefly by funds and investors for speculative exposure, and by end users and banks as commercial hedges. They also serve a range of additional purposes that will be explored further below. Further applications are noted below, with additional context to be provided in subsequent sections for readers there. Types of equity derivative instruments Equity derivative instruments fall into the following seven principal categories: Options — the two primary forms are put options and call options. A put option holder is entitled to sell an underlying asset (for example, shares) to a...

The Investigatory Powers Act 2016 ( IPA 2016) IPA 2016 sits at the heart of the statutory regime that regulates covert surveillance undertaken by public authorities. Historically, much of this regime—though not all—was housed in the Regulation of Investigatory Powers Act 2000 ( RIPA 2000). The rules addressing powers to interfere with equipment and property are contained in IPA 2016, Pt 5. These operate alongside the powers available to the intelligence agencies ( GCHQ, MI5 and SIS) under sections 5 and 7 of the Intelligence Services Act 1994. Under IPA 2016, s 13, the intelligence services must secure an equipment interference warrant to obtain communications, private information or equipment data where, without such a warrant, the conduct would constitute an offence under the Computer Misuse Act 1990 and there is a British Islands connection. The Home Office has published a Code of Practice on...

EPs ( EPs) provide a framework for identifying, evaluating and controlling environmental and social risks within project financings. Launched in 2003 by the International Finance Corporation ( IFC), backed by ten financial institutions, they have evolved into the financial sector’s baseline for due diligence and oversight, guiding responsible risk decisions. Institutions adopt the EPs to confirm that financed projects are delivered in a socially responsible way and embody robust environmental management; after adoption, they commit to offer financial services to project financings only where the EPs’ criteria are satisfied. The EPs have directed the project finance market’s focus towards social and community standards and accountability, encompassing stringent requirements for indigenous peoples, labour protections, and engagement with locally affected communities. They have also encouraged alignment around shared environmental and social norms and helped catalyse the creation of additional responsible environmental and social management practices across the...

All regulated law firms and practitioners must promote equality, diversity and inclusion. This goes beyond ticking legal or regulatory boxes; quite simply, it is the right course of action. The Solicitors Regulation Authority ( SRA) expects you to act proactively and take proportionate steps to foster diversity across every level of your firm. Building an inclusive, diverse team is not only ethically sound. It can also bolster public trust in the profession and deliver clear business gains. It boosts motivation, improves retention, helps you attract the strongest candidates in the market, and cultivates a culture where people feel able to perform at their best. This Practice Note guides you through the key considerations in creating an inclusive and diverse workforce within your law firm. The Solicitors Regulation Authority ( SRA) has issued guidance on diversity in recruitment, retention and...

Statutory framework The ( EHRC) is an independent non-departmental public body created under the Equality Act 2006 ( EA 2006), which defines its functions, duties and powers. It commenced operations on 1 October 1997, replacing three previous equality bodies: the Disability Rights Commission, the Commission for Racial Equality and the Equal Opportunities Commission. While institutionally separate from government, the EHRC is sponsored by the Government Equalities Office and remains accountable for public money; accordingly, it produces an annual report and a set of accounts each business year. The EHRC’s remit spans England, Scotland and Wales, with Northern Ireland excluded. For more on the EHRC’s framework, see EHRC—governance manual. The commissioners The EHRC’s work is directed by a board of commissioners numbering between 10 and 15, each bringing experience and expertise in equality and/or human rights. Commissioners are appointed for terms ranging from two to five years, with the...

This Practice Note examines the specific defences and exemptions that can arise in cases of discrimination, victimisation and harassment, together with other claims described as prohibited conduct under the Equality Act 2010 ( Eq A 2010). It addresses: unlawful contracts; steps mandated by legislation; national security; state immunity and diplomatic immunity; positive discrimination and positive action at work; claims under equality of terms provisions; occupational requirements; the selection of candidates by political parties; settings with an ethos based on religion or belief; organised religions; the armed forces; competitive sports; communal accommodation; Sikhs wearing turbans on construction sites; seafarers; access to benefits linked to marital status; benefits based on length of service; National Minimum Wage rates; childcare; redundancy payments; the provision of certain benefits and age; and pension scheme exceptions. Which protected characteristics apply Unless otherwise indicated, the defences and exemptions outlined below apply in...

When a dispute or claim concerns an employee working wholly or in part overseas and/or engaged by a foreign employer, two matters must be settled: what rights does the employee have? in which forum should any eventual litigation be heard? In resolving these points, three principal matters arise: applicable law — that is, which legal system governs the employment contract in question? international jurisdiction — namely, which courts and/or tribunals ought to determine the dispute?......

This Practice Note outlines the situations in which claims of discrimination, harassment and victimisation, and certain other claims, described as ‘prohibited conduct’ under the Equality Act 2010 ( Eq A 2010), may arise, before, during and after employment. It also includes references to case law of the Court of Justice of the European Union ( CJEU). For guidance on whether CJEU judgments are binding on UK courts, see Practice Note: Assimilated law— Assimilated case law. Domestic legislation made to implement UK obligations under EU law (such as the duty to implement a Directive) was retained as EU‑derived domestic legislation under the European Union ( Withdrawal) Act 2018 ( EU( W) A 2018). From 1 January 2024, under the Retained EU Law ( Revocation and Reform) Act 2023, EU‑derived domestic legislation is ‘assimilated’ into domestic law, by virtue of the fact that it is...

This Practice Note explores which provisions of the Equality Act 2010 ( Eq A 2010) bring into force the prohibitions on discrimination in schools, the various forms of discrimination—sex, race, religion or belief, age, marriage or civil partnership, and disability—and any relevant exceptions that may apply. It further explains that the Equality Act 2010 ( Specific Duties and Public Authorities) Regulations 2017, SI 2017/353, oblige education-function public authorities to publish yearly information showing compliance with the public sector equality duty ( PSED) in Eq A 2010, s 149... The public sector equality duty Under the Equality Act 2010 ( Specific Duties and Public Authorities) Regulations 2017, SI 2017/353, specific obligations apply to public authorities with education responsibilities. Those bodies must publish material evidencing adherence to the PSED under Eq A 2010, s 149, at annual intervals. This must be done every year. See Practice Notes:...

This Practice Note sets out the remedies when pursuing a prohibited conduct (discrimination) claim under the Equality Act 2010 ( Eq A 2010), and directs readers to further resources for additional detail. It additionally addresses the impact of determinations made in earlier proceedings under the pre‑ Eq A 2010 discrimination regime, as well as the extra requirement of making a ‘service complaint’ that applies to claims brought by members of the armed forces. There is a separate Practice Note dealing with remedies in equality of terms (equal pay) claims: see Practice Note: Equal pay claims—jurisdiction, remedies and interest......

What are guaranteed minimum pensions? Guaranteed minimum pensions ( GMPs) came into being on 6 April 1978, arriving at the very moment the State Earnings- Related Pension Scheme ( SERPS) was launched. The legislation in force at the time — namely the Social Security Act 1975 and the Social Security Pensions Act 1975 — allowed an employee’s employment to be contracted out of SERPS provided particular conditions were met. In essence, those conditions required the employee to be enrolled in a pension scheme that promised to pay a pension of at least a guaranteed minimum amount. That guaranteed minimum was intended to match the pension the employee would otherwise have received under SERPS. Generally, it was expected that the benefits actually payable from the relevant scheme would exceed the GMP. The principal appeal of contracting-out was that, because the state would not be...

This Practice Note explores the mechanism applied in equal pay disputes, termed equality of terms claims under the Equality Act 2010 ( Eq A 2010). Prerequisites for an equal pay claim The Eq A 2010 contains measures intended to deliver equality between men and women in pay and other employment terms where the work carried out by an employee and their comparator — a person of the opposite sex — is equal. It accomplishes this by implying a sex equality clause into the employee’s contract of employment. That clause is intended to secure parity of terms between the employee and their comparator. An equivalent provision — described as a sex equality rule — is likewise implied into the terms of occupational pension schemes too......

This Practice Note explores who can pursue an equal pay claim—termed equality of terms under the Equality Act 2010 ( Eq A 2010)—and unpacks the ideas of equal work, like work, work rated as equivalent, and work of equal value (equal value claims) in detail. This Practice Note includes citations to decisions of the Court of Justice of the European Union ( CJEU) too. For advice on whether CJEU judgments bind UK courts, refer to Practice Note: Assimilated law— Assimilated case law for further detail. Equal pay Code of Practice and guidance The Equality and Human Rights Commission ( EHRC) has published a Statutory Code of Practice (the Code). The Code does not itself impose legal duties. However, it clarifies the legal obligations under the Eq A 2010. Tribunals and courts dealing with an equal pay claim must consider any portion of the Code that seems pertinent to the...

CASE HUB ARCHIVED –this archived case hub reflects the position at the date of the decision of 13 November 2012; it is no longer maintained. See further, timeline and commentary. Case facts Summary of a UK merger review into the completed purchase by Epwin Holdings Limited of Latium Building Products Holdings Limited, CET Glass Processors Holdings Limited and Building Plastics Holdings Limited. Latest developments The CC determined that the deal posed no competition concerns and did not bring about a significant lessening of competition. Consequently, the CC granted unconditional clearance. Parties Acquirer — Epwin Holdings Limited ( Epwin). Targets — Latium Building Products Holdings Limited ( Latium); CET Glass Processors Holdings Limited ( CET); Building Plastics Holdings Limited ( Building Plastics). Epwin was among the earliest UK producers of PVC window frames. Beyond PVC manufacturing, Epwin also operates 27 stockists. Before the deal, Epwin was owned by Mr Jim Rawson. Before the deal,...