Is Your Privacy Notice Out of Date? What the 2025 UK GDPR Changes Mean for Law Firms
Whilst this may be a welcome move, legal experts suggest that the proposed changes may mark a departure from the current legal framework which may lead to substantial and unpredictable implications. So what are the proposed changes?
One of the most immediate impacts expected from the Labour government is an increase in the national minimum wage. Labour has pledged to introduce a “real living wage” for all workers, which could substantially increase the earnings of low-income employees. This policy aims to ensure that wages keep pace with the cost of living, thereby reducing poverty and economic inequality.
Impact on Employers: Employers may need to reassess their wage structures and budget allocations to comply with the new minimum wage regulations. This could particularly affect small and medium-sized enterprises (SMEs), which may face increased financial pressure.
Impact on Employees: Workers at the lower end of the pay scale stand to benefit significantly from wage increases, leading to improved living standards and economic security.
Labour’s platform includes comprehensive measures to enhance workers’ rights, such as better protection against unfair dismissal, stronger enforcement of employment standards, and more substantial penalties for non-compliance. Labour proposes to make unfair dismissal as a day one right, which is a significant change as an employee currently needs 2 years of service to bring an unfair dismissal claim. It also proposes to introduce new rights to equal pay for Black, Asiana and minority ethnic and disabled people. It proposes to strengthen the rights to equal pay for women, strengthen protections from maternity and menopause discrimination as well as increase protections from sexual harassment.
Impact on Employers: Businesses will need to review their employment practices and ensure full compliance with the new standards. This may involve revising contracts, enhancing training for management, and potentially increasing HR staffing to handle the new regulatory environment.
Impact on Employees: Employees can expect greater job security and protection from exploitative practices. This change is likely to foster a more positive work environment and reduce the incidence of workplace disputes.
Labour’s manifesto emphasised its commitment to strengthening the role of trade unions and expanding collective bargaining rights. This would give workers a stronger voice in negotiating wages and working conditions.
Impact on Employers: Employers might face more frequent and robust negotiations with unions. It will be essential for businesses to develop strategies for effective and constructive engagement with union representatives to avoid industrial actions and maintain workplace harmony.
Impact on Employees: Enhanced collective bargaining rights will empower employees to negotiate better terms of employment, leading to potentially improved wages and working conditions.
Labour plans to implement policies aimed at reducing workplace discrimination and promoting equality and inclusion. This includes stricter regulations on gender pay gap reporting and measures to support diversity in the workplace. It also proposes to make reporting on ethnicity pay gap and disability gap mandatory for large organisations.
Impact on Employers: Companies will need to adopt more rigorous equality and diversity policies. Regular audits and transparent reporting will be necessary to comply with the new regulations.
Impact on Employees: These measures will provide a fairer and more inclusive workplace environment, offering equal opportunities for all employees regardless of gender, race, or background.
Labour has also expressed a commitment to addressing the precarious nature of gig economy jobs and zero-hour contracts. The aim is to provide these workers with greater job security and benefits.
Impact on Employers: Companies relying heavily on gig economy workers or zero-hour contracts may need to restructure their workforce and employment practices. This could include offering more stable contracts and ensuring access to benefits such as sick pay and holiday pay.
Impact on Employees: Workers in the gig economy and on zero-hour contracts will gain more stability and security, improving their overall quality of life and financial wellbeing.
Fire and rehire, also known as dismissal and re-engagement, is a controversial employment practice where an employer terminates employees’ contracts and then offers them new contracts, often with less favourable terms. This tactic is typically used during organisational restructuring or cost-cutting measures. While it provides employers with flexibility to adjust to economic pressures, it can lead to significant uncertainty and instability for employees, sparking debates about its ethical implications and calls for stricter regulation. Labour proposes to outlaw the practice.
Impact on Employers: Companies will be restricted (or will have strict conditions applied to the practice) on using methods to reduce costs quickly in an event of financial difficulty. If this is taken together with Labour’s proposal to make unfair dismissal a day one right, this will have significant implications for businesses.
Impact on Employees: Ending fire and rehire will mean that workers can be safe in the knowledge that terms and conditions negotiated in good faith can’t be ripped up under threat of dismissal.
Understanding these potential changes is vital. Employer’s will require staying abreast of legislative developments helping businesses adapt to the new regulatory landscape.
The Labour Party’s victory represents a significant turning point in the UK’s employment landscape. As these policies begin to take shape, both employers and employees will need to navigate the changes thoughtfully and strategically. We are committed to providing the guidance and support necessary to ensure that all parties can successfully adapt to this new era of employment law.
News & Insights
0330 120 1819
Can UK Employees Refuse to Work for Companies Involved in the Genocide in Gaza?
Whilst this may be a welcome move, legal experts suggest that the proposed changes may mark a departure from the current legal framework which may lead to substantial and unpredictable implications. So what are the proposed changes?
One of the most immediate impacts expected from the Labour government is an increase in the national minimum wage. Labour has pledged to introduce a “real living wage” for all workers, which could substantially increase the earnings of low-income employees. This policy aims to ensure that wages keep pace with the cost of living, thereby reducing poverty and economic inequality.
Impact on Employers: Employers may need to reassess their wage structures and budget allocations to comply with the new minimum wage regulations. This could particularly affect small and medium-sized enterprises (SMEs), which may face increased financial pressure.
Impact on Employees: Workers at the lower end of the pay scale stand to benefit significantly from wage increases, leading to improved living standards and economic security.
Labour’s platform includes comprehensive measures to enhance workers’ rights, such as better protection against unfair dismissal, stronger enforcement of employment standards, and more substantial penalties for non-compliance. Labour proposes to make unfair dismissal as a day one right, which is a significant change as an employee currently needs 2 years of service to bring an unfair dismissal claim. It also proposes to introduce new rights to equal pay for Black, Asiana and minority ethnic and disabled people. It proposes to strengthen the rights to equal pay for women, strengthen protections from maternity and menopause discrimination as well as increase protections from sexual harassment.
Impact on Employers: Businesses will need to review their employment practices and ensure full compliance with the new standards. This may involve revising contracts, enhancing training for management, and potentially increasing HR staffing to handle the new regulatory environment.
Impact on Employees: Employees can expect greater job security and protection from exploitative practices. This change is likely to foster a more positive work environment and reduce the incidence of workplace disputes.
Labour’s manifesto emphasised its commitment to strengthening the role of trade unions and expanding collective bargaining rights. This would give workers a stronger voice in negotiating wages and working conditions.
Impact on Employers: Employers might face more frequent and robust negotiations with unions. It will be essential for businesses to develop strategies for effective and constructive engagement with union representatives to avoid industrial actions and maintain workplace harmony.
Impact on Employees: Enhanced collective bargaining rights will empower employees to negotiate better terms of employment, leading to potentially improved wages and working conditions.
Labour plans to implement policies aimed at reducing workplace discrimination and promoting equality and inclusion. This includes stricter regulations on gender pay gap reporting and measures to support diversity in the workplace. It also proposes to make reporting on ethnicity pay gap and disability gap mandatory for large organisations.
Impact on Employers: Companies will need to adopt more rigorous equality and diversity policies. Regular audits and transparent reporting will be necessary to comply with the new regulations.
Impact on Employees: These measures will provide a fairer and more inclusive workplace environment, offering equal opportunities for all employees regardless of gender, race, or background.
Labour has also expressed a commitment to addressing the precarious nature of gig economy jobs and zero-hour contracts. The aim is to provide these workers with greater job security and benefits.
Impact on Employers: Companies relying heavily on gig economy workers or zero-hour contracts may need to restructure their workforce and employment practices. This could include offering more stable contracts and ensuring access to benefits such as sick pay and holiday pay.
Impact on Employees: Workers in the gig economy and on zero-hour contracts will gain more stability and security, improving their overall quality of life and financial wellbeing.
Fire and rehire, also known as dismissal and re-engagement, is a controversial employment practice where an employer terminates employees’ contracts and then offers them new contracts, often with less favourable terms. This tactic is typically used during organisational restructuring or cost-cutting measures. While it provides employers with flexibility to adjust to economic pressures, it can lead to significant uncertainty and instability for employees, sparking debates about its ethical implications and calls for stricter regulation. Labour proposes to outlaw the practice.
Impact on Employers: Companies will be restricted (or will have strict conditions applied to the practice) on using methods to reduce costs quickly in an event of financial difficulty. If this is taken together with Labour’s proposal to make unfair dismissal a day one right, this will have significant implications for businesses.
Impact on Employees: Ending fire and rehire will mean that workers can be safe in the knowledge that terms and conditions negotiated in good faith can’t be ripped up under threat of dismissal.
Understanding these potential changes is vital. Employer’s will require staying abreast of legislative developments helping businesses adapt to the new regulatory landscape.
The Labour Party’s victory represents a significant turning point in the UK’s employment landscape. As these policies begin to take shape, both employers and employees will need to navigate the changes thoughtfully and strategically. We are committed to providing the guidance and support necessary to ensure that all parties can successfully adapt to this new era of employment law.
News & Insights
0330 120 1819
Understanding the Fire and Rehire Restrictions: What Employers Need to Know
In recent years, the practice of “fire and rehire” has come under intense scrutiny in the UK. This controversial tactic, where employers dismiss staff and rehire them on less favourable terms, has been criticised for potentially exploiting workers.
“Fire and rehire” is a controversial employment practice where an employer dismisses staff and then immediately offers to rehire them on new, often less favourable, terms. This tactic is typically used when an employer wants to change employment terms but cannot secure agreement from employees. While employers may view it as a necessary measure during financial difficulties or changing market conditions, critics argue it can be used to erode workers’ rights and conditions unfairly.
The new Labour government has signalled its intention to take a stronger stance against the misuse of fire and rehire practices. They have proposed more comprehensive reforms aimed at better protecting workers’ rights while still allowing businesses necessary flexibility. These proposals include making fire and rehire illegal as a negotiating tactic, strengthening protections against unfair dismissal, and introducing more severe penalties for employers who breach the new regulations. Labour also plans to enhance the role of trade unions in negotiation processes and improve mechanisms for collective bargaining. While the specifics of these reforms are still being developed, they represent a significant shift towards greater worker protection in employment law.
The government acknowledges that in genuine cases where no other options exist, businesses must have the ability to restructure to ensure their continued viability. However, they emphasise that such restructuring should follow a proper process, one that is founded on open dialogue and mutual understanding between employers and workers. To this end, the government appears to be committed to reforming the law to provide more effective safeguards against potential abuse. The Labour government indicated that it intends to replace the current code of practice. While we have no details on timescales of a possible future ban employers considering this as an option are required to comply with the current code of practice, which came into force in July 2024.
The Code of Practice (Dismissal and Re-engagement) Order 2024 (SI2024/708) came into force on 18 July 2024. It brought into force a new statutory Code of Practice on Dismissal and Re-engagement, introduced to regulate the use of “fire and rehire” practices when an employer wishes to vary employees’ terms and conditions of employment. The full code of practice can be found here:
Although the Code itself does not impose any legal obligations on employers, employment tribunals will be required to take it into account when considering the award of compensation in relevant cases.
The Code of Practice on Dismissal and Re-engagement provides comprehensive guidance for employers considering changes to employment terms that may involve dismissal and re-engagement. Here’s a detailed breakdown of its key components:
1. Overview of the Code
The Code applies to all employers, regardless of size or sector, when considering changes to employment terms that may involve dismissal and re-engagement. It’s crucial to note that while the Code itself is not legally binding, employment tribunals will take it employer’s failure to comply with the code into account when determining compensation. Failure to follow the Code could result in up to a 25% increase in compensation awards for successful unfair dismissal claims.
The new Code of Practice significantly raises the bar for employers considering dismissal and re-engagement practices. While it presents challenges, following the Code diligently can help protect your business from potential legal risks and foster better employee relations.
We are here to guide you through this complex process. If you’re considering changes to employment terms, we strongly recommend seeking legal advice to ensure full compliance with the Code and minimise potential risks.
For more detailed guidance or to discuss your specific situation, please don’t hesitate to contact our employment law team.
0330 120 1819
The Labour Party’s Victory in the UK: Implications for Employment Law
Whilst this may be a welcome move, legal experts suggest that the proposed changes may mark a departure from the current legal framework which may lead to substantial and unpredictable implications. So what are the proposed changes?
One of the most immediate impacts expected from the Labour government is an increase in the national minimum wage. Labour has pledged to introduce a “real living wage” for all workers, which could substantially increase the earnings of low-income employees. This policy aims to ensure that wages keep pace with the cost of living, thereby reducing poverty and economic inequality.
Impact on Employers: Employers may need to reassess their wage structures and budget allocations to comply with the new minimum wage regulations. This could particularly affect small and medium-sized enterprises (SMEs), which may face increased financial pressure.
Impact on Employees: Workers at the lower end of the pay scale stand to benefit significantly from wage increases, leading to improved living standards and economic security.
Labour’s platform includes comprehensive measures to enhance workers’ rights, such as better protection against unfair dismissal, stronger enforcement of employment standards, and more substantial penalties for non-compliance. Labour proposes to make unfair dismissal as a day one right, which is a significant change as an employee currently needs 2 years of service to bring an unfair dismissal claim. It also proposes to introduce new rights to equal pay for Black, Asiana and minority ethnic and disabled people. It proposes to strengthen the rights to equal pay for women, strengthen protections from maternity and menopause discrimination as well as increase protections from sexual harassment.
Impact on Employers: Businesses will need to review their employment practices and ensure full compliance with the new standards. This may involve revising contracts, enhancing training for management, and potentially increasing HR staffing to handle the new regulatory environment.
Impact on Employees: Employees can expect greater job security and protection from exploitative practices. This change is likely to foster a more positive work environment and reduce the incidence of workplace disputes.
Labour’s manifesto emphasised its commitment to strengthening the role of trade unions and expanding collective bargaining rights. This would give workers a stronger voice in negotiating wages and working conditions.
Impact on Employers: Employers might face more frequent and robust negotiations with unions. It will be essential for businesses to develop strategies for effective and constructive engagement with union representatives to avoid industrial actions and maintain workplace harmony.
Impact on Employees: Enhanced collective bargaining rights will empower employees to negotiate better terms of employment, leading to potentially improved wages and working conditions.
Labour plans to implement policies aimed at reducing workplace discrimination and promoting equality and inclusion. This includes stricter regulations on gender pay gap reporting and measures to support diversity in the workplace. It also proposes to make reporting on ethnicity pay gap and disability gap mandatory for large organisations.
Impact on Employers: Companies will need to adopt more rigorous equality and diversity policies. Regular audits and transparent reporting will be necessary to comply with the new regulations.
Impact on Employees: These measures will provide a fairer and more inclusive workplace environment, offering equal opportunities for all employees regardless of gender, race, or background.
Labour has also expressed a commitment to addressing the precarious nature of gig economy jobs and zero-hour contracts. The aim is to provide these workers with greater job security and benefits.
Impact on Employers: Companies relying heavily on gig economy workers or zero-hour contracts may need to restructure their workforce and employment practices. This could include offering more stable contracts and ensuring access to benefits such as sick pay and holiday pay.
Impact on Employees: Workers in the gig economy and on zero-hour contracts will gain more stability and security, improving their overall quality of life and financial wellbeing.
Fire and rehire, also known as dismissal and re-engagement, is a controversial employment practice where an employer terminates employees’ contracts and then offers them new contracts, often with less favourable terms. This tactic is typically used during organisational restructuring or cost-cutting measures. While it provides employers with flexibility to adjust to economic pressures, it can lead to significant uncertainty and instability for employees, sparking debates about its ethical implications and calls for stricter regulation. Labour proposes to outlaw the practice.
Impact on Employers: Companies will be restricted (or will have strict conditions applied to the practice) on using methods to reduce costs quickly in an event of financial difficulty. If this is taken together with Labour’s proposal to make unfair dismissal a day one right, this will have significant implications for businesses.
Impact on Employees: Ending fire and rehire will mean that workers can be safe in the knowledge that terms and conditions negotiated in good faith can’t be ripped up under threat of dismissal.
Understanding these potential changes is vital. Employer’s will require staying abreast of legislative developments helping businesses adapt to the new regulatory landscape.
The Labour Party’s victory represents a significant turning point in the UK’s employment landscape. As these policies begin to take shape, both employers and employees will need to navigate the changes thoughtfully and strategically. We are committed to providing the guidance and support necessary to ensure that all parties can successfully adapt to this new era of employment law.
0330 120 1819
A settlement agreement often includes provisions for a severance payment by the employer in exchange for the employee’s agreement not to pursue any claims related to their employment or its termination. To be valid, it must comply with strict requirements. Firstly, it must be in writing. It must relate to specific complaints or proceedings. Furthermore, the employee must have received independent legal advice on the terms and effects of the agreement. This ensures both parties clearly understand the contents of the settlement agreement.
A settlement agreement is intended to be a final resolution between the parties and the breadth of claims covered by settlement agreement is crucial. Often it will include both current and potential future claims that the employee might not yet be aware of. These can extend to statutory claims that haven’t surfaced at the time of the agreement.
However, the legality of waiving such future claims has been debated. Generally, case law suggests that employees can only waive unknown future statutory claims if the settlement agreement explicitly states this intention (referencing Hilton UK Hotels Ltd v McNaughton).
This issue was further clarified by the Court of Session in Bathgate v Technip Singapore PTE Ltd and now most recently in the case of Clifford v IBM.
Mr. Bathgate was laid off by Technip. He signed a settlement agreement in January 2017, waiving rights to any claims, including age discrimination. The waiver was comprehensive and covered existing and potential future claims as well.
The settlement agreement also confirmed adherence to the Equality Act 2010’s conditions for a valid settlement, which include addressing specific complaints.
A discrepancy arose over a payment under a collective agreement due to Mr. Bathgate’s age, leading to his age discrimination claim at the Employment Tribunal (ET). The ET upheld the settlement, citing the agreement explicitly covered such a future claim, following the Hilton precedent.
The question before the Employment Tribunal (“ET”) was whether section 147(3)(b) EqA 2010 had prevented the parties from settling Mr Bathgate’s age discrimination claim. Section 147(3)(b) requires a settlement agreement to relate to “the particular complaint”. In other words, it must specify the exact claims that the parties which are signatory to the settlement agreement are intending to settle. Mr Bathgate argued that a settlement agreement purporting to settle post-settlement claims was not enforceable. The ET disagreed. Following the judgment in Hilton, it found that the settlement agreement did in fact expressly cover Mr Bathgate’s claim, despite the fact that it had not yet arisen at the time of the settlement agreement.
Mr Bathgate appealed to the EAT, arguing that it was not possible to settle a claim under a settlement agreement before that claim had arisen. Mr Bathgate asserted that the legislation precluded the settlement of his claim, and referred to an extract from Hansard, in which Viscount Ullswater, when referring to the Employment Rights Act 1996’ equivalent provision at s.203(3), said: “these procedures should only be available in the context of an agreement which settles a particular complaint that has already arisen between the parties to that complaint”. Mr Bathgate stated it was clear from this that Parliament did not intend the legislation on settlement agreements to cover the settlement of future unknown statutory claims.
The EAT concluded that, regardless of the intention of the parties, s.147(3)(b) EqA 2010 did not allow future claims to be waived.
Employer appealed this point to the Court of Session. It argued that an unknown future statutory claim may be settled by a waiver where the intention of the parties is plain and unequivocal. It argued that the terms of the settlement agreement between the parties was clear and that therefore Mr Bathgate has settled all the claims, including any future ones.
The employer succeeded. The Court of Session held that provided the “types of claims are clearly identified and the objective meaning of the words used is such as to encompass settlement of the relevant claim” they could be settled even if at the date of the agreement they have not yet arisen. In this case, it found that the terms of the settlement agreement were sufficiently clear. This meant that Mr Bathgate had settled all the claims by way of the agreement including the future age discrimination claim.
Although this decision was not binding in England and Wales. a general view was that it would be influential in terms of employment tribunal decisions.
This was recently tested in a case of Clifford v IBM. In this case the Employment Appeal Tribunal held that the tribunal had been correct to strike-out the Claimant’s claim of disability discrimination. This was on the basis that it been validly settled by a prior settlement agreement.
As such future claims can be contracted out of as long as the wording of the settlement agreement is clear, unequivocal and explicitly covers future unknown claims.
This case serves as a reminder of the importance of getting the wording of the settlement agreement right.
0330 120 1819
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