May HR Roundup

As May 2025 concludes, here are some of the recent tribunal and court rulings which have provided vital insights into how employment law is being interpreted in practice. Employment legislation often contains grey areas, broad principles that need to be interpreted in real-world situations which is where employment tribunals come in.

When disputes arise, tribunals and courts don’t just resolve individual cases, they help clarify how the law should be applied. For small businesses, understanding tribunal outcomes is crucial:

• They provide practical guidance: Tribunals offer concrete examples of what works - and what doesn’t - when implementing HR policies and procedures.

• They highlight risks: Tribunal decisions show how even minor missteps can result in legal claims, reputational damage, or costly compensation.

• They influence best practice: Often, these cases set informal benchmarks for how other employers should act in similar situations.

By staying up to date, small businesses can manage their risks when making decisions, update documentation, and train staff more effectively, without having to experience costly claims first-hand.

Redundancy Criteria and Indirect Age Discrimination Case: Wayne Norman v. Lidl

Mr. Norman, a senior construction consultant in his 60s, was selected for redundancy after being marked down for not having a university degree—despite years of experience. The tribunal found this amounted to indirect age discrimination, as younger colleagues were more likely to hold degrees. He was awarded over £50,000 in compensation.

🔎 Why it matters: When designing redundancy selection criteria, employers must ensure they don’t inadvertently disadvantage certain age groups. For small businesses, even unintentional discrimination can lead to costly tribunal claims. Experience should not be undervalued in favour of qualifications unless clearly justified by the role.

Race Discrimination and Fair Disciplinary Action Case: Ms. M. Kokomane v. Boots Management Services Ltd

Ms. Kokomane brought forward claims of race discrimination and unfair dismissal after disciplinary action led to her termination. The Employment Appeal Tribunal reviewed whether her employer had applied fair procedures and unbiased judgement throughout the process.

🔎 Why it matters: This case reinforces the importance of conducting fair, transparent, and well-documented disciplinary processes. Small businesses must ensure that managers are trained to avoid unconscious bias and that all steps are consistently followed—especially where dismissal is a possible outcome.

Workplace Banter Leading to Compensation Case: Khan v. Manchester University NHS Foundation Trust

An NHS training supervisor was awarded nearly £29,000 after a colleague assigned her a "Darth Vader" personality type during a team-building exercise. The tribunal found this comparison insulting and upheld her claim of detriment following a protected disclosure.

🔎 Why it matters: Even light-hearted activities can lead to serious consequences if they target or humiliate an individual—especially after whistleblowing. Ensure workplace culture is respectful and protective of those raising concerns. Avoid “banter” that could be perceived as personal or retaliatory.

Inclusion of Tips in Holiday Pay Calculations Case: Jobling v. Colley Lane Hotel Ltd

A recent tribunal ruling determined that tips and service charges, when regularly received, should be included in holiday pay calculations. This decision affects businesses in the hospitality and service sectors where tipping is customary.

🔎 Why it matters: If your employees regularly earn tips or service charges, those earnings must be factored into holiday pay. Small employers must check payroll calculations and update contracts and payslips to reflect correct entitlements, avoiding underpayment risks.

Nonverbal Expressions Constituting Discrimination Case: McQueen v General Optical Council

An employment tribunal ruled that nonverbal expressions of frustration, such as sighing, directed at an employee with ADHD, amounted to disability discrimination. The case underscores the importance of understanding how subtle behaviours can impact employees with disabilities.

🔎 Why it matters: This case reminds us that discrimination isn't always loud or obvious. Non-verbal cues can significantly impact neurodiverse employees. Small businesses must build awareness and train teams to recognise how tone, expression, and interaction affect inclusion.

Whistleblowing and Procedural Fairness Case: Mr. Neeraj Handa v. The Station Hotel (Newcastle) Ltd

Mr. Handa raised concerns about potential financial irregularities and was later dismissed. The tribunal found that the employer failed to follow proper procedures in investigating the whistleblowing claim and in handling his dismissal, leading to an unfair dismissal ruling.

🔎 Why it matters: Small businesses often lack formal whistleblowing procedures, but failing to handle such reports fairly can lead to serious legal and reputational consequences. Having a clear, confidential reporting process and following it consistently is crucial, even in smaller teams.

Tribunal Rules in Favour of Employee Dismissed Over WFH Request: Wicken v Akita Systems Limited

An employment tribunal has ruled that IT director Ben Wicken was unfairly dismissed by Akita Systems after requesting to attend a mediation meeting remotely so he could supervise gardening work at his home. Despite attempts at mediation, the process was undermined when a close associate of the managing director led the grievance review - a move the tribunal found procedurally unfair. It concluded that Wicken’s request wasn’t unreasonable and found that the employer had failed to follow a fair process and had appeared to have made the decision to dismiss before the grievance process had concluded.

🔎 Why it matters: Small businesses must ensure grievance procedures are impartial and robust, and that flexible working requests are handled fairly - failing to do so can lead to costly and reputationally damaging claims.

Key Takeaways

Staying informed about recent legal decisions is essential for small businesses to:

• Ensure Compliance: Align HR policies with current laws to avoid legal pitfalls.

• Promote Inclusivity: Foster a workplace environment that respects and supports all employees.

• Protect the Business: Mitigate risks associated with non-compliance, which can lead to costly legal disputes and reputational damage.

HR's Communication Challenge: Why It Matters More Than Ever

A recent article from HR Grapevine highlights that HR has a communication problem. In today's evolving workplace, HR professionals are expected to be not just policy enforcers but also effective communicators who can build trust, foster engagement, and navigate complex interpersonal dynamics.

🔎 Why it matters: For small businesses, where HR roles are often multifaceted, strong communication skills are essential. Effective communication can lead to:

• Enhanced Employee Engagement: Clear and consistent messaging helps employees feel valued and understood.

• Improved Conflict Resolution: Open lines of communication can prevent misunderstandings and address issues before they escalate.

• Stronger Team Cohesion: Transparent communication fosters a sense of unity and shared purpose.

  Suggestions for Improvement:

• Active Listening Training: Encourage HR professionals and managers to develop active listening skills to better understand employee concerns.

• Regular Feedback Mechanisms: Implement regular check-ins and feedback sessions to maintain open dialogue.

• Clear Communication Channels: Establish and maintain clear channels for internal communication, ensuring that all employees are informed and heard.

Meeting the Rising Demand for On-Demand HR Solutions

In an increasingly complex and fast-paced business environment, more organisations are turning to on-demand HR resources to stay agile and compliant. At Saltwater HR, we've seen a significant uptick in requests for ready-to-use, customisable solutions—from employee handbooks and policies to contracts and operational HR services.

For busy business owners and HR professionals, these resources offer an efficient way to implement best-practice HR frameworks without the time and cost of starting from scratch. Whether you're responding to regulatory changes or scaling up quickly, having expert-developed tools at your fingertips helps ensure you remain compliant, consistent, and confident in your HR approach.

Explore our suite of instantly accessible templates and services at saltwaterhr.co.uk/hr-templates.

Stay proactive and ensure your HR practices are compliant and effective