September Employment Law Update

10/1/20254 min read

Photo of Autumn Leaves by Gigi Visacri on Unsplash
Photo of Autumn Leaves by Gigi Visacri on Unsplash

Welcome to our monthly employment law round-up. The start of Autumn has been a significant period for employment law developments, with the Employment Rights Bill moving closer and several important tribunal rulings that affect how employers manage their workforce.

1. Employment Rights Bill: Final Stages Approaching

The Employment Rights Bill is now in its final parliamentary stages. MPs rejected several Lords’ amendments, including:

  • “Day one” unfair dismissal rights

  • Guaranteed hours contracts

  • Stricter limits on short-notice shift changes

  • Wider rights to be accompanied at hearings

A new amendment was added to strengthen protections around reasonable adjustments in harassment/discrimination claims.

The Bill is back in the Lords, and could still shift before becoming law but The House of Lords has scheduled a vote on amendments for 28 October, after which the Bill will hopefully proceed to Royal Assent and become the Employment Rights Act. If Royal Assent is granted at the beginning of November, the first provisions (mainly relating to TUs and industrial action) will be expected early 2026. Consultations are due to take place on a number of the provisions through Autumn 2025 to early 2026, with the first major provisions due to be implemented in April 2026. The rest of the measures are due to be implemented from October 2026 through to 2027. These timings do depend very much on the consultations and whether the Government are able to keep to the timetable.

What this means for you:

  • Only a small number of measures will take effect immediately upon Royal Assent

  • Most provisions will require further consultations and secondary legislation

  • The first substantive changes are likely to come into force in April 2026

  • As we keep banging on, employers should start preparing now for the extensive changes ahead

Action point: Review the government's roadmap for April 2026 changes and begin assessing how these reforms will impact your business, particularly around unfair dismissal protection, flexible working rights, and trade union relationships.

2. Case Law Highlights

In Miss A Lanuszka v Accountancy MK Services Ltd, an employee was dismissed after spyware on her work computer recorded 1 hour and 24 minutes of personal browsing over two days. The tribunal found the dismissal to be unfair.

Key takeaways:

  • The employer failed to follow proper procedures before dismissal.

  • There was no evidence the personal browsing affected work performance.

  • The employer didn't investigate whether the employee had made up the time.

  • Monitoring must be proportionate and transparent

Action point: Review your monitoring policies and ensure they're clearly communicated to staff. Always investigate thoroughly and consider whether the conduct genuinely warrants dismissal before taking action.

In Ms S Kellington-Crawford v Newlands Care Angus Ltd, an English care worker successfully brought claims for race discrimination and harassment after managers conducted a sensitive supervision meeting in Polish, a language she did not understand. The Tribunal ruled that, while there was no intent to harass, being excluded from a critical, formal discussion in this manner created an intimidating and humiliating environment for the claimant, who was the only non-Polish speaker present.

Key takeaways:

  • Discrimination is about effect, not intent

  • Formal meetings demand clarity and in all formal procedures, the language used must be clearly understood by all participants.

Action point: Review and update your Disciplinary and Grievance procedures to include a mandatory clause on the language of communication. Ensure all managers are trained that in any one-to-one formal meeting, the dialogue must be in a language understood by all parties present.

In Day v Lewisham & Greenwich NHS Trust, the Employment Appeal Tribunal clarified that protection from whistleblowing detriment can continue after employment has ended.

Key takeaways:

  • Employers cannot take detrimental action against former employees in retaliation for whistleblowing they did whilst employed.

Action point: Ensure your whistleblowing policies and manager training cover post-employment protections.

In AB v Grafters Group Ltd, the Employment Appeal Tribunal clarified when an employer is liable for acts carried out by one employee against another, specifically regarding whether such acts were "in the course of employment."

Key takeways:

  • Employers can be held liable for discriminatory or harassing behaviour by employees even if it occurs outside normal working hours or off premises, if there's a sufficient connection to employment.

Action point: Ensure your policies cover behaviour at work events, social gatherings, and online interactions between colleagues.

3. Sexual Harassment Prevention: EHRC and Lidl Agreement

The Equality and Human Rights Commission (EHRC) has entered into a legally binding Section 23 agreement with Lidl GB following a tribunal ruling that found the company failed to take reasonable steps to prevent sexual harassment of a young female employee.

What Lidl must do:

  • Review and update internal policies and training

  • Conduct comprehensive risk assessments

  • Analyse complaints data to identify patterns

  • Engage with EDI groups to mitigate risks

Action point: Remember that employers now have a strengthened legal duty to prevent sexual harassment. Review your policies, training, and risk assessments to ensure you're taking proactive steps to protect your employees.

4. New CMA Guidance: Competing for Talent

The Competition and Markets Authority published guidance on how competition law applies to recruitment and HR processes, warning that certain practices could breach competition law.

Practices to avoid:

  • Agreements with competitors about salaries, benefits, or recruitment practices

  • Sharing commercially sensitive information about pay or hiring plans

  • No-poaching agreements between companies

Action point: Review your recruitment practices, particularly if you have relationships with competitor businesses or industry groups where HR matters are discussed.

5. Failure to Prevent Fraud Offence Now in Force

As of 1 September 2025, companies can now be liable for the criminal offence of "failure to prevent fraud" if an employee or agent commits fraud intending to benefit the organisation.

What you need to do:

  • Implement reasonable procedures to prevent fraud

  • Conduct risk assessments

  • Provide training to employees

  • Establish clear reporting mechanisms

Action point: Review your fraud prevention procedures and ensure they're documented and communicated to all staff.

6. ACAS Launches Five-Year Modernisation Strategy

ACAS has launched a new strategy to modernise how workplace disputes are handled across Britain, focusing on early resolution and digital services.

What this means: Expect improved access to dispute resolution services, more online resources, and enhanced early conciliation processes.

Looking Ahead

September has reinforced the importance of having robust HR policies, proper procedures, and proactive approaches to compliance. With the Employment Rights Act on the horizon, now is the time to review your employment practices and prepare for significant changes ahead.

Need help navigating these changes? Whether you need policy updates, training, or strategic HR support, get in touch to discuss how we can help your business stay compliant and protect your employees.

This newsletter is for general information purposes only and does not constitute legal advice. For specific guidance on how these changes affect your business, please seek professional advice.