We round up the latest employment news.
EHRC to update legal guidance following the Supreme Court ruling
The Equality and Human Rights Commission (EHRC) is set to revise its legal guidance after the UK Supreme Court's landmark ruling in For Women Scotland v The Scottish Ministers decided that sex in the Equality Act means biological sex and isn’t affected by a gender-recognition certificate.
Kishwer Falkner, chair of the EHRC, announced that the commission is working swiftly to update its code of practice by the summer. The ruling has significant implications for various sectors, including employment, sports, and social services. The EHRC plans to address further legal issues, such as the validity of gender-recognition certificates and potential litigation over equal pay claims for transgender individuals.
Report on employer compliance with right to work checks
The Home Office has released a report examining how aware employers are about right to work checks. The study found that while 89% of employers understand basic requirements, many lack comprehensive knowledge of compliance obligations.
Key findings include:
- Smaller employers and specific sectors, such as construction, face increased risks, especially following the rise in civil penalties to £60,000 per illegal worker in February 2024
- Employers are struggling to prepare for the end of biometric residency permits from 1 January 2025; and
- The use of Right to Work mechanisms varies based on business size, sector and employment type, with smaller employers and those hiring agency or zero-hours workers being more vulnerable to non-compliance.
Post-pandemic workforce demands higher pay for on-site work
A study by BSI and think-tank ResPublica reveals that younger workers who started their careers post-pandemic expect higher pay to work on-site work. The 2025 global workforce entrants study surveyed 4,700 individuals and found that:
- 37% prefer hybrid working, while only 16% favour remote work
- Nearly half (49%) of those in hybrid or remote roles would leave their job if required to work fully on-site.
- 71% believe jobs requiring full-time presence should offer flexible policies, such as core hours
- 64% think full-time office roles should be compensated more; and
- 34% reported negative mental health effects from remote work during the pandemic, but 57% found hybrid work beneficial for their wellbeing.
Consultation on mandatory ethnicity and disability pay gap reporting
The Office for Equality and Opportunity has initiated a consultation on implementing mandatory ethnicity and disability pay gap reporting for large employers (defined as those with 250 or more employees). This consultation, running from 18 March 2025 to 10 June 2025, aims to gather feedback to shape proposals for the forthcoming Equality (Race and Disability) Bill, announced in the King’s Speech in July 2024.
The consultation seeks to address how employers can effectively report pay disparities based on ethnicity and disability, ensuring transparency and promoting equality in the workplace.
Acas issues new guidance on Neonatal Care Leave and Pay
Acas has released new guidance on statutory neonatal care leave and pay effective from 6 April 2025. The guidance provides practical advice for employers and employees, explains the legal structure, and sets out a number of steps businesses can take to manage this right.
It recommends:
- Clearly setting out the process for requesting the leave and pay in contracts or policies
- Being flexible during the first seven days of neonatal care, when there's no statutory entitlement to take leave by potentially offering paid or unpaid leave
- Giving employees the option of giving notice in alternative ways and being flexible around this; and
- Trying to support the employee by keeping in touch – possibly via a close friend or family member if appropriate.
Survey highlights workplace abuse and changing employment trends
A recent survey has revealed that one-in-seven UK employees has experienced workplace abuse, including bullying, violence, and sexual harassment. The Skills and Employment Survey identified higher risks in occupations such as nursing (32%) and teaching (28%), with women and night workers being particularly vulnerable.
The survey also highlighted the impact of the pandemic on working practices, with over half of workers using spaces not intended for work. It also noted a shift in attitudes towards unions, with over a third of employees in non-unionised workplaces expressing a desire to establish a union. Additionally, it found that the adoption of AI is increasing, especially in high-paying, high-skill jobs, predominantly among men, younger workers, and those with degrees.
Nearly half of LGBTQ+ employees feel unsupported by HR
A study conducted by Pride in Leadership has revealed that 42% of LGBTQ+ employees feel unsupported by their employers' HR departments when facing issues relating to LGBTQ+. Respondents felt their concerns were "brushed off" by HR, highlighting a significant gap in support and understanding.
Key findings include:
- The study identified several obstacles, including a lack of inclusive workplace policies, experiences of discrimination, and biased recruitment practices
- Among respondents, 85% reported encountering significant obstacles linked to their identity, with a lack of representation in leadership being a major concern; and
- Only 15% of respondents felt their workplace was a safe space to share their identity.
Questions over third-party harassment provisions in Employment Rights Bill
The Chair of the Joint Committee on Human Rights (JCHR) has raised concerns about the third-party harassment provisions in clause 20 of the Employment Rights Bill. In a letter to the Secretary of State for Business and Trade, the JCHR questioned whether the provisions strike the right balance between rights under Articles 8 (private and family life) and 10 (freedom of expression) of the European Convention on Human Rights.
Consultation on Welfare Reforms
The UK Government has initiated a 12-week consultation on proposed welfare reforms aimed at supporting disabled people and those with health conditions. The consultation seeks input from affected individuals and organisations to shape the new system.
The consultation is part of the government's broader Plan for Change and will close on 30 June 2025.
Majority of employees considering job change within a year
A recent study by Aon reveals that 65% of UK employees are contemplating changing jobs within the next 12 months. This trend is driven by feelings of being undervalued, with one-in-four employees expressing dissatisfaction in their current roles.
Key findings include:
- While 54% of employees believe their pay is fair, 22% aren't confident about gender pay equality in their workplace
- The great resignation and quiet quitting phenomena highlight the need for managers to provide clear career pathways and development opportunities to retain talent
- Retirement savings are highly valued by Generation X and Baby Boomers, while Generation Y prioritises work-life balance and career development; and
- 57% of employees are willing to sacrifice existing benefits for more personalised options that align with their needs.
UK job market weakens due to rising employment costs
The UK job market is showing signs of weakening as employment costs continue to rise, according to the Office for National Statistics (ONS). It reported that job vacancies have fallen to their lowest level in nearly four years, with only 781,000 positions available in the first quarter of 2025. Payroll numbers also declined, with 78,000 fewer workers on payrolls in March.
The UK unemployment rate remains steady at 4.4%, but the employment rate for people aged 16 to 64 is below Labour's target of 80%.
Read more – April 2025
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