FTSE Women Leaders Review publishes new report
This week, the FTSE Women Leaders Review published its latest report, assessing progress towards its voluntary recommendations to improve the representation of women on boards and leadership teams. The report confirms that the UK has continued to achieve in excess of targeted gender diversity at board level, while showing that progress in executive leadership continues at a slower pace. The review tracks gender representation across the FTSE 350 and a cohort of the UK’s largest private companies, using voluntary targets supported by the government, investors and business leaders. It reports that women now hold approximately 43% of board positions across the FTSE 350, with 69% of companies meeting or exceeding the 40% board level target, a significant increase compared with five years ago. Women hold around 36% of senior leadership roles across the FTSE 350 and women occupy only around 8% of FTSE 350 CEO roles where progress remains slow. The data highlights a continuing gap between listed and private sector governance outcomes. Across the top 50 private companies, women hold around 30% of board positions and this proportion has remained broadly unchanged since reporting on this cohort began in 2022. The review has now completed its five year cycle from 2021 to 2025 and will turn its focus to the next phase of its work.
Pinsent Masons’ EU Pay Transparency Directive Implementation Tracker
We are pleased to announce the publication of our EU Pay Transparency Directive Implementation Tracker, which provides a clear and practical overview of how EU Member States are implementing the Directive. Our free online tracker highlights key national developments, implementation timelines and will help employers understand how pay transparency requirements continue to develop across Europe. We expect it will provide valuable support to organisations operating in multiple EU countries as they prepare for upcoming compliance obligations. If your organisation would like to run a dry exercise of pay gap calculations to identify potential risk areas and consider remedial actions, we would be happy to discuss how we can help. Our Global Pay Equity Solution helps employers assess readiness, manage risk and plan practical next steps. Please get in touch with Susannah Donaldson or your usual Pinsent Masons contact if you would like to explore this further or discuss how the Directive may affect your organisation.
Research shows potential impact of ERA zero hour protections
New analysis by the Work Foundation at Lancaster University, a think tank aimed at improving working life, shows that the number of people on zero hour contracts in the UK has reached a record 1.23 million. The zero-hour research, based on ONS data, indicates that the number of people on zero hour contracts has increased by 91,000 over the past year and by 181,000 since July 2024, when the current government took office. Younger workers aged 16 to 24 have driven this growth and are five times more likely to work on zero hour contracts than older workers, alongside individuals who are not in full time education. Women experience a disproportionate impact as they are 1.2 times more likely than men to work on zero hour contracts. In 2027 the ERA will introduce new rights for zero hour and low hour workers, including rights to reasonable notice of shifts, payments for shifts cancelled, moved or curtailed at short notice and a right to guaranteed minimum hours. These rights will also extend to agency workers. For employers preparing for the impact of the ERA’s provisions, the findings illustrate the scale of the challenge. Research shows that nine in ten zero hour workers in 2023 would have qualified for an offer of guaranteed hours under the government’s original proposal of a 12 week reference period. Estimates also suggest that around one third of workers rely on zero hour contracts for full time hours, indicating that many workers may welcome a transition to guaranteed hours. The government expects to launch a consultation on these measures shortly and this process will play a critical role in shaping the final rights and obligations under this part of the ERA.
Industrial action reforms take effect, but no updated statutory guidance
Although ERA reforms on industrial action, including picketing, took effect on 18 February, the government has not yet brought the supporting revised statutory codes of practice into force. The government has amended its websites that host (1) the statutory code of practice on picketing, and (2) the statutory code of practice on industrial action ballots and notice to employers, to explain that these codes will continue to apply beyond 18 February until the revisions take effect. Employers should exercise caution when referring to these codes, as they reflect legal positions that no longer apply. For example, the code on picketing still expects unions to appoint a picket supervisor, even though the ERA repealed this requirement last week. Employers should therefore take advice on what’s currently in play.
Scottish hate crime laws set to expand to include “sex”
The Scottish Government laid regulations before the Scottish Parliament to add “sex” as a protected characteristic under hate crime laws. The regulations would create a criminal offence of stirring up hatred based on “sex” and would allow courts to treat crimes motivated by such hatred as aggravated offences. Current hate crime laws, which came into force in April 2024, created new offences for stirring up hatred based on age, disability, religion, sexual orientation, transgender identity and variations in sex characteristics. However, the government excluded sex from that list, prompting ongoing debate. Under the new proposals, the government defines sex as biological sex, in line with the Supreme Court’s decision in For Women Scotland. The regulations would protect women and girls, who would benefit most, as well as men and boys, who would also gain legal safeguards. The Scottish Parliament is extremely likely to pass the regulations which are scheduled to come into effect on 5 April 2027. Employers in Scotland may have an interest in this extension of hate crime laws.
