June 2025 HR Round-up: Updates on Employment Rights Bill and Key Employment Law Cases

June 2025 has continued to bring significant developments in employment law, particularly concerning the Employment Rights Bill. This pivotal legislation aims to enhance protections for workers and address key issues related to job security and workers' rights. Recent discussions in Parliament suggest a strong commitment to passing this bill, which has been met with both support and criticism from various sectors.

The Employment Rights Bill: What's Next?

The Employment Rights Bill continues its journey through Parliament, having completed its Committee Stage in the House of Lords on 20 June.

Current Status:

• The Bill is at Report Stage at the House of Lords

• Third Reading follows, where amendments can still be introduced

• Return to Commons for consideration of Lords' amendments (likely a formality)

• Royal Assent expected around end of September/early October 2025

You can view it's process here: https://bills.parliament.uk/bills/3737

What’s proposed?

• Day-one rights: protection from unfair dismissal, family leave, sick pay, and bereavement leave.

• End to exploitative zero-hour contracts.

• Tighter rules on ‘fire and rehire’ tactics.

• New Fair Work Agency with powers to investigate and fund claims.

• Cap on unpaid work experience to prevent minimum wage avoidance.

What This Means for Small Businesses: While the exact timeline remains uncertain, the government has promised to issue a roadmap for implementation. The next year will be crucial as consultation on regulations begins, revealing how the government plans to implement key measures.

How to prepare (especially for small businesses):

1. Review all employment contracts
   Check that contracts are clear on hours, duties, and terms. Pay attention to any clauses about changes in hours or roles, these may come under fire.

2. Revisit probation and dismissal processes
   Dismissals post-Bill will require a clear reason and process from day one. You can no longer rely on the “under two years, low risk” mindset. Make sure that you have probation periods specified in your contracts, with the option to extend, and follow strong probationary review processes. Dismissal policies must be fair and you need to make sure you follow your specified processes.

3. Check employment status
   Use the CEST tool to ensure self-employed contractors aren’t actually workers or employees under the new definitions.

4. Strengthen manager training
   Line managers must know how to provide fair feedback, conduct dismissals properly, and record actions. Vague or inconsistent management will become a liability.

5. Plan for additional costs
   Day-one SSP, family leave, and improved rights for casual workers will create cost implications—start building this into budgeting.

6. Review exit interview and dispute resolution processes
   Proactive resolution will matter more, especially with the new agency funding some tribunal claims. Strengthen your internal feedback and issue-resolution practices.

7. Review protection against third-party harassment
   The Bill introduces liability if staff are harassed by clients, customers or the public. You’ll need to show you took all reasonable steps to prevent it. Update policies, train staff, and set expectations with third parties, especially in public-facing roles.

Employment Law Case Updates

There have been a few interesting employment law cases this month, especially at appeal tribunal.

HR Manager's "Messy Work" Discrimination Case Fails: Shevlin v John Wiley and Sons Limited (2025)

An HR manager who claimed discrimination after being told his work was "messy" has lost his case and been ordered to pay £20,000 in costs. Thomas Shevlin, who had ADHD and traits of dyslexia, was told by his manager that his rushed work contained typos and unclear sentences. Shevlin resigned and filed a claim for disability discrimination. The tribunal found his reaction was "unreasonable" and that the comments didn't meet the threshold for harassment, emphasising the importance of proportionate responses to workplace feedback.

Key Takeaway: Managers can provide honest feedback about work quality, but should document performance issues properly and consider whether employees might benefit from occupational health referrals.

Company Credit Card Case: £26,000 Award for Unfair Dismissal: Pitchell v JATA construction Ltd (2025)

A construction worker who used a company credit card to buy pottery for £100 - and immediately repaid it - was unfairly dismissed and awarded £26,297. The tribunal found that JATA Construction's response was outside the range of reasonable responses, particularly given:

• The employee immediately disclosed the mistake and repaid the money

• The company had previously allowed significant debts to build up with this employee

• The same director handled investigation, dismissal, and appeal

• The personal relationship between employee and director wasn't considered

Key Takeaway: Ensure fair procedures are followed, consider all circumstances including employment history, and avoid conflicts of interest in disciplinary processes.

Contract Variations Case: Dobbie v Paula Felton (trading as Fenton’s Solicitors) (2025)

Consultant (Dobbie) claimed additional fees via oral variation to a written fee-sharing agreement. The contract contained an “entire agreement / no oral variations” clause. The Employment Appeal Tribunal reinforced the importance of "entire agreement" and "no oral variations" clauses, which meant that no separate agreement could exist, and the claimant couldn't therefore claim the additional fees based on alleged oral agreements.

Key takeaway: Ensure all consulting or employment agreements include clear, binding written-variation clauses to prevent unexpected claims from supposed verbal agreements.

Fair Procedures in Gross Misconduct Case: Woodhead v WTTV Ltd (2025)

A High Court case emphasising that employers must follow fair procedures even during redundancy situations. Deficiencies in handling sexual harassment allegations caused the employee psychiatric injury, highlighting the duty of care during stressful disciplinary processes.

The employee faced allegations of sexual harassment whilst on notice of redundancy and was suspended following an investigation. He was subsequently made redundant. The employee successfully claimed that the process was procedurally unfair, resulting in psychiatric injury.

Key takeaway: Disciplinary procedures must be fair and balanced, especially where gross misconduct is alleged. Employers have a duty to prevent foreseeable harm through proper investigation and communication.

What This Means for Your Business

These developments highlight several key themes:

• Process matters as much as substance - Fair procedures are essential, regardless of the underlying issue

• Documentation is crucial - Clear contracts and proper record-keeping protect both parties

• Early intervention pays off - Addressing issues promptly prevents escalation

• Training is essential - Managers need skills to handle difficult conversations and procedures properly

Looking Ahead

As we move through 2025, the employment law landscape is set for significant change. The key is preparation - reviewing your procedures, training your managers, and ensuring your documentation is robust.

Remember, while the Employment Rights Bill will bring challenges, it also presents opportunities to build stronger, more engaged workforces through better HR practices.