Employment Law Digest 2024/2025

Last year saw Labour move into parliament with the effect of catalysing a turn towards worker friendly rights. As a result of this, lots of new legislation was introduced at the tail end of 2024, with much more proposed and due to make its way through parliament in 2025.

So what are the key takeaways that Employers/Employees need to be aware of going into the New Year?

Employment Rights Bill

The first phase of Labour’s ‘plan to Make Work Pay’ involved the introduction of the Employment Rights Bill, which has been described by government as the ‘biggest upgrade in Employment rights for a generation.’ The bill looks to put a stop to one-sided flexibility and aims to make employees feel secure within their job by banning zero-hour contracts and making unfair dismissal a day one right.

An important case from this year centred around termination, Gallagher v Mickinnon Auto and Tyres, illustrated how severance discussions only remain confidential, if proper behaviour is used by the employer. It is vital that employers conduct pre-termination-discussions professionally, and by the book. Otherwise, these conversations may become unprotected and therefore admissible in tribunals.

Regarding making workplaces more family friendly; Labour plans to make paternity and unpaid parental leave a day one right. As well as introducing further protections for pregnant women, which extends to 6 months post- partum.

Harassment and Discrimination

The bill has increased the employer’s duty on its employees to ensure that they have taken all reasonable steps to prevent sexual harassment of their employees. This obligation has been extended to include sexual harassment via third parties. Additionally, in Carozzi v University of Hertfordshire, it was successfully argued that conduct not intentionally linked to a protected characteristic, could constitute harassment- if it has the effect of violating dignity or creating a hostile environment.

British Airways plc v Rollett and others (Minister for Women and Equalities intervening) confirmed that claimants who do not share the same protected characteristic but do share the same disadvantage as those with the protected characteristic, are entitled to bring a claim for indirect discrimination.

It was an important year for case law surrounding discrimination. Baldwin v Cleves School, confirmed that where a tribunal finds that an employer is vicariously liable for acts of discrimination committed by one of their employees, the tribunal has no discretion in deciding whether the employee is also individually liable under section 110 of the Equality Act 2010.

Fair pay

Equality Action plans are to be introduced which will set out how to address gender pay gap issues, as well as introducing fair pay agreements in the adult social care sector. The bill will remove the lower earnings limit and waiting period for statutory sick pay. There are a few more changes that are due to come into force under the bill and following amendments made to the Equality Act 2010, so it essential that employer’s read the new legislation and review their policies to ensure that they are legally complaint.

Trade Unions

It is proposed that the bill will modernise trade union legislation, giving trade unions greater freedom to organise, represent and negotiate on behalf of their workers.

Things to look out for next year!

‘Right to switch off’- Labour believes that the introduction of remote working during the pandemic invertedly blurred the lines between work and home life. They want to give workers and employers the opportunity to work together on bespoke workplace policies or contractual terms that benefit both parties.

The Higher Education (Freedom of speech) Act 2023 Act was supposed to come into force on 1st August 2024, but has not yet done so. It will prevent English higher education providers, such as universities, from entering into non-disclosure agreements with staff, students or visiting speakers in relation to sexual abuse, sexual harassment, sexual misconduct and other types of harassment or bullying.