Employment Law +

Latest amendments announced to Employment Rights Bill 

Late in the parliamentary process, more amendments were announced this week. The main amendments with UK government backing include:

• the anticipated ban on the use of NDAs (confidentiality clauses) in cases of harassment or discrimination will be brought in. This has received a mixed response – some commentators are of the view that if a business cannot guarantee confidentiality, it is less likely to settle a claim; while campaigners against NDAs have lauded the announcement. Zelda Perkins, Founder of the campaign Can’t Buy My Silence UK, is quoted in the government’s press release. However, there will be exceptions to the rule – you will forgive us for saying – details awaited on what those exceptions will look like!
• families who experience pregnancy loss before 24 weeks will be entitled to protected bereavement leave, extending the protection which is already in place for those who suffer pregnancy loss after 24 weeks.
• in cases of fire and rehire, there are new defined categories of “restricted variations” where it will be automatically unfair to dismiss and offer re-engagement on new terms. These include detrimental changes to pay, pensions, hours, shifts, and holidays. Seeking to impose a clause which enables the employer to vary the contract in these areas will be a restricted variation in itself. However, an automatic unfair dismissal will not be triggered where changes are minor, “routine and non-detrimental” or the change proposed relates to the place of work. A new test of fairness will be applied in cases of non-automatic unfairness. Specific amends also apply to the public sector – where a different test of financial necessity will apply.
• a new provision has been added which will make it automatically unfair to dismiss an employee where they are to be replaced by “an individual who is not an employee of the employer” and that individual will undertake the same or substantially the same activities as the employee performed prior to dismissal. Clearly intended to catch circumstances where employees are replaced with e.g. agency workers, this is a new stand-alone right. It will not apply where the business’ need for the activities to be performed has or will cease or diminish.

With these, hopefully final amendments proposed, the Bill will move forward, and we can expect consultations soon in line with the government's roadmap.

Supreme Court “gender ruling” clarity sought by Northern Ireland’s Equality Commission 

The Equality Commission for Northern Ireland published its response to the UK Supreme Court’s judgment in For Women Scotland, setting out the Roadmap it will follow to understand the effect of this ruling in Northern Ireland against the backdrop of the Windsor Framework. After the Supreme Court handed down its judgment on the definition of “sex” under the Equality Act 2010, the Equality Commission turned its focus to clarifying what implications this would have in NI (given that the Equality Act 2010 does not apply in NI). Whilst they consider that the judgment is likely to be deemed by industrial tribunals and courts in NI to be highly persuasive, they have now determined that they require a declaration from the High Court on the impact (if any) of Article 2 of the Windsor Framework (which ensures no diminution of equality rights and requires legislation to be interpreted in line with European law) on the NI position before finalising their guidance for employers.

Due to the questions arising, specifically for employers, the Commission is committing to a six step Roadmap to achieve clarity, and ultimately judicial direction;

1. Publication of the legal paper, which includes vital interim guidance for employers;
2. 12-week public consultation with stakeholders;
3. Pre-action protocol engagement with relevant organisations and individuals, in order to test legal positions;
4. High Court Application for a declaratory judgment, to clarify the “significant legal uncertainties”;
5. Draft guidance for further stakeholder consultation;
6. Final guidance for employers, service providers and public authorities.

Employers should note the interim guidance set out in the ECNI’s paper, especially when reviewing policies on single-sex services, facilities, or employment decisions in Northern Ireland.

Report on skilled worker shortage in construction

A new report from City & Guilds reveals that critical shortages of skilled workers are jeopardising the government’s pledge to build 1.5 million new homes by 2029, with employers struggling to recruit the skilled people they need. 76% of construction firms are reportedly struggling to recruit the skilled workers they need, with 84% of respondents believing the industry is facing a critical skills crisis. As a result, 54% expressed doubt that the sector can meet the government’s housing or net-zero targets. The homebuilding sector would need to recruit 161,000 additional workers to meet those targets. Instead the industry is losing 50,000 skilled workers each year to an ageing workforce and lack of new entrants. City & Guilds has proposed a strategic framework for the government to consider in order to solve these issues, namely by attracting new talent, supporting career changers and upskilling the existing workforce. Read more on Out-Law: UK 10-year infrastructure strategy ‘welcome attempt to address ongoing challenges’

Major immigration rules changes will take effect on 22 July 2025

This page is updated weekly with News and Views from that week’s employment weekly briefing email. For previous articles, please contact us: Employment Law Plus.

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