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The Employment Rights Bill: key considerations for businesses

Posted on: July 28th, 2025 by Natasha Cox

With the upcoming Employment Rights Bill progressing towards Royal Assent, Senior Associate Joanne Leach examines the key preparations employers and businesses should consider to ensure their workplace policies are both compliant and productive.

Joanne’s comments were published in ICAEW Insights, 28 July 2025, and can be found here.

“The Employment Rights Bill (ERB) will introduce sweeping reforms to UK employment law, when it becomes law, with phased implementation beginning when the Bill receives royal assent (likely to be in Autumn 2025) and gathering pace in April 2026, through to 2027.

“The Employment Rights Bill is the most comprehensive reform of UK employment law in a generation. For many employers, this won’t just be a policy update – it will require a cultural shift.

“The phased rollout gives employers time, but not an excuse to delay. Reviewing contracts, policies and training now will save significant disruption later.

“One of the biggest risks is inconsistency: applying new rules unevenly across teams or locations could open the door to discrimination claims.

“Handled well, implementation of these reforms could enhance retention, improve transparency, and position businesses as employers of choice. Implementation of the ERB won’t be just about compliance – it will be an opportunity to future-proof workforce strategy.

“The new right to request predictable hours will require a rethink for sectors reliant on casual labour but it also offers a chance to build more stable, engaged workforces.

“Agency workers will see meaningful gains in transparency and protection. Employers must ensure these workers are not overlooked in compliance planning.”

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

Navigating the Employment Rights Bill

Posted on: July 25th, 2025 by Natasha Cox

The Employment Rights Bill proposes significant changes to employment law and employers and HR professionals will be required to navigate complex changes over the next two years to ensure compliance with it. This will undoubtedly be a daunting time for all, but the businesses that navigate this period with the most success will be those who proactively take steps early on.

This guide explains what you should be doing and when to ensure that you, as an employer and business owner, can navigate the changes likely to be passed into law in the most effective way. 

Mitigating compliance risks

  1. Audit and update contracts and policies

By completing an HR Audit (including a comprehensive review of all employment contracts, staff handbooks and policies) employers can ensure that the definitions and procedures contained within satisfy the new legal requirements. Particular attention should be paid to clauses and policies that affect part-time, agency, and zero-hours workers, as their rights are expected to be significantly strengthened in the Bill.

  1. Train line managers and HR teams

Education is key to compliance, but while there is a lot of information on the Bill out there, some sources are more reliable than others. By providing proper training to managers and HR teams by those who truly understanding the employment law changes contained within the Bill, employers can ensure that their staff receive accurate information (thus increasing the likelihood of compliance). Any training provided should go beyond the strict legal requirements and include practical scenarios, such as handling flexible working requests, conducting fair dismissals, and interactions with trade unions. As the supporting regulations are introduced, training should be reviewed and updated to ensure it reflects current legal requirements.

  1. Implement a compliance calendar

Creating a timeline that maps out the implementation of the Bill and details the changing requirements, necessary training, and communications to staff, will help achieve a smooth transition.

  1. Engage with consultation processes

As the consultation process on the Bill is ongoing, prudent employers will pay close attention to the government debates. Through keeping a keen eye on its progress, employers will be able to take advantage of any opportunity to partake in industry consultations, ensuring the needs of the sector they operate in are fully considered.

Strategic objectives for employers

  1. Strengthen employer brand

More than ever, employees are holding their employers accountable for how they treat their staff and any breaches of law that may occur. By publishing the proactive steps taken to ensure compliance with the Bill, employers will demonstrate that they are aware of and respect their legal obligations. Not only will this help to mitigate the risk of legal claims, but it will also help to attract high-quality employees. Employers who highlight their commitment to fairness, transparency, and employee well-being will differentiate themselves in a competitive hiring market.

  1. Drive operational efficiencies

The more efficient a business is, the smoother it runs and the more profit it makes. Taking the time to implement the Bill correctly can also provide an opportunity to revisit existing processes to assess their efficiency and determine whether they can be streamlined. By ensuring that standardised documentation and decision-making protocols are in place, the risk of inconsistent practices and associated complaints is reduced.

  1. Foster a culture of trust

Going beyond the strict legal requirements and involving affected employees in the implementation of all changes required by the Bill will help to foster a culture of trust. Open communication, for example, via surveys and focus groups, will create a positive workplace culture.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

Employment Rights Bill: looking to the future

Posted on: July 24th, 2025 by Natasha Cox

Several of the changes in the Employment Rights Bill which are expected to have the most significant impact will not take effect until 2027 at the earliest. As these changes will mark a drastic departure from the current law, sufficient time is needed for meaningful consultation to take place and for the drafting to be finalised. Given the monumental impact they will bring, it is essential for both employees and employers that they are well thought out and communicated, to reduce the risk of misunderstandings and claims resulting from confusion.

Protection from unfair dismissal from the commencement of employment

Currently, employees must have two years of continuous service to be afforded the right not to be unfairly dismissed (except in a limited number of situations known as automatic unfair dismissal). Before this time, employees are not legally entitled to written reasons for their dismissal.

The Bill will provide employees with protection from unfair dismissal from the first day of their employment. However, the protection will not extend to employees who have entered into an employment contract but have not commenced work (subject to some exceptions), including where the dismissal is due to an automatically unfair reason, such as political opinion or affiliation, or a spent conviction.

We expect to see regulations which detail a light-touch dismissal policy during the initial period (the government has expressed a preference for a nine-month period). This is expected to apply:

  • Where the termination date is no later than three months after the end of the initial period, so long as the notice to terminate the employment was provided during the initial period and;
  • The reason for dismissal is capability, conduct, illegality or some other substantial reason.

During this initial period, there will be a different compensation regime for employees who are unfairly dismissed. Where notice is given to terminate the employment after the initial period, employers will be required to provide written reasons for dismissal if requested.

The government has stated its intention to extensively consult on areas of this reform, including the initial period as well as the process required to terminate employment during this time.

Concerns have been raised regarding the time required to implement this change. Last week, the Conservatives brought forward a measure to defeat the proposed day one protection from unfair dismissal. In what appears to be a simpler solution, the House of Lords voted 304 to 160 to support amending the qualifying period to six months. We are yet to see how the Government will respond to this. Day one protection was a key part of the Government’s manifesto and it will have to decide whether a more in-depth review of the system is required, or whether the proposed Conservative amendment will work just as well. There are several factors which could influence its decision-making, including:

  • The Conservatives’ proposal is simpler for employers and employees to understand, which could result in higher levels of compliance. The hope would be that this would, consequently provide clarity, resulting in fewer incorrect cases being brought before the Employment Tribunal and stretching an already overworked resource even further.
  • As there would be fewer changes to implement via the Conservatives’ proposal, less consultation would be required, meaning that it could become law before the end of the year.

Collective consultation

The requirement to adhere to the collective consultation process will be extended to situations where an employer intends to make 20 or more employees redundant at one establishment, or where the threshold test is met. The threshold test has yet to be defined, but we expect it will be based on a percentage of employees being made redundant. It will also not be a requirement for employers to consult with all representatives together, or to reach the same agreement with all representatives.

Gender pay gap and menopause action plan

Whilst it can be introduced voluntarily in 2026, it will be mandatory from 2027 for employers with 250+ employees to report on their plans to reduce the gender and menopause pay gaps in their company. There will be penalties for non-compliance.

From 2027, employers will also have to include contract workers in their gender pay gap reports.

Enhanced protection for pregnant women and new mothers

Currently, women who are at risk of redundancy have the right to be offered any available suitable alternative employment, once they inform their employer they are pregnant, or if their expected date of childbirth was less than 18 months ago.

The Bill intends to introduce regulations which shall cover protection from other dismissals taking place during pregnancy, maternity leave or following a return to work (for a period of six months).

Further harassment protections

Employers are already expected to take all reasonable steps to prevent sexual harassment – what these steps actually look like are expected to be specified in 2027.

Bereavement leave

Unless an employee’s child dies under the age of 18 or is stillborn after 24 weeks of pregnancy, there is currently no statutory right to bereavement leave. The Bill intends to introduce a ‘day one right’ to at least one week of (unpaid) bereavement leave for employees. Regulations will define the relationship between the employee and the deceased. 

Zero hour contracts

Currently, employers are permitted to engage individuals on zero-hour contracts, provided they do not prevent the individuals from working for another employer.

The government had promised to introduce a ban on ‘exploitative’ zero-hour contracts, but the Bill does not actually go that far. Instead, it gives those on zero-hour contracts the right to a guaranteed-hours contract if they work regular hours over a defined period. Once an employee establishes a pattern of regular working over a 12-week period, employers are obliged to offer regular hours. Should an individual wish to remain on a zero-hour contract, they can. 

These amendments would provide individuals with security while allowing them to remain on a zero-hours contract if they prefer, and will also apply to agency workers. The details of this amendment will be contained in secondary legislation and therefore, it is possible that the length of the reference period, exceptions to the rights and conditions for qualifying for this protection may change in the coming months.

However, on 2 July 2025, during a debate in the House of Lords, the majority voted in favour of altering this requirement from a duty to offer guaranteed hours to a right for workers to request guaranteed hours, with an obligation on employers to grant such a request.

The Bill also proposes that workers on these contracts will be entitled to ‘reasonable’ notice of any shift changes, as well as compensation if a shift is cancelled or cut short. However, the House of Lords again voted for this to be altered to ‘short notice’, requiring that if a shift is cancelled on less than 48 hours’ notice, compensation would be paid.

Access to flexible working

Employees are entitled to make flexible working requests from the first day of their employment and there is no limit to the number of requests which can be made. Under the Bill, should an employer refuse an application, it will now have to explain the reason for the refusal and why it considers its decision reasonable. There is no change to the penalty for breaching the requirements of how to deal with a request, which remains 8 weeks’ pay. It may be that the second draft, or draft regulations, includes guidance on what steps an employer should take before refusing a request.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

Chambers HNW 2025: Lawrence Stephens Residential Real Estate Team Recognized, Goli-Michelle Banan Ranked Band 3

Posted on: July 24th, 2025 by Alanah Lenten

We are delighted to announce that Goli-Michelle Banan, Head of Residential Real Estate at Lawrence Stephens, has been promoted from Band 4 to Band 3 in the latest Chambers High Net Worth 2025 guide. Her individual rise is matched by an exciting development for the wider Residential Real Estate team, which has secured its first-ever ranking, entering directly at Band 4 in the Real Estate: High Value Residential category.

This recognition places us firmly in competition with some of the capital’s larger and most established firms, including Howard Kennedy and Edwin Coe, underscoring the strength, calibre and growing market presence of our Residential Real Estate team.

With more than a decade’s experience in the prime and core London residential market, Goli-Michelle is a trusted adviser to HNW and UHNW individuals, developers, investors, and trust administrators across the UK and internationally. Known for her commercial insight and unrelenting attention to detail, she is also recognised in the Spear’s 500 as one of the UK’s top recommended property lawyers.

This year’s Chambers HNW guide includes glowing endorsements from clients and peers, who describe her as:

  • “Exceptionally efficient and professional. She has remarkable attention to detail and a thorough approach.”
  • “Incredibly helpful and very detailed… a great solicitor that I’ve had the pleasure of working with.”
  • “Positive, thorough and professional.”

Our Residential Real Estate practice advises on a wide range of complex and high-value transactions, including property sales and acquisitions, leasehold enfranchisement, development site purchases, refinancing, and Islamic finance. Clients range from private investors and family offices to corporates and developers, all of whom value our commercial, solution-driven approach and high-quality service.

Our team’s first-time ranking also reflects the exceptional feedback received this year:

  • “Lawrence Stephens is committed to its clients and provides excellent legal advice, offering solutions and updating all parties involved in an extremely timely manner.
  • “The team is easy to work with, personable, client-centric, pragmatic and collaborative.”

We’re proud that Chambers HNW 2025 has acknowledged the expertise that defines our real estate offering. Congratulations to Goli-Michelle and the entire Residential Real Estate team on this well-earned recognition, a major step forward in our continued growth within the HNW space.

Employment Rights Bill 2025: strengthened protection for workers

Posted on: July 23rd, 2025 by Natasha Cox

The Bill will introduce several significant changes in October 2026. While a number of these changes are still subject to consultation, the aim is clear: to strengthen protection for workers. These changes will drastically alter employers’ obligations towards their staff, increasing the risk of non-compliance if employers fail to educate themselves, which in turn brings financial and reputational risks.

Reforms to ‘fire and rehire’

While there have always been reputational and industrial relations risks associated with the practice of fire and rehire, it is a lawful practice.

The Government had previously indicated that the Bill would abolish fire and rehire. This quickly became so that it would significantly restrict its use.

It is expected that the Bill will make dismissing an employee for refusing to agree to a contract variation about key contractual terms automatically unfair. The key contractual terms are expected to include pay, working hours, pension, time-off rights, and others. It is expected that the regulations which shall accompany the Bill will define ‘key contractual terms’

However, the restrictions will not be all-encompassing. Where there is a genuine need to avoid serious financial issues that may threaten a business, employers may still be permitted, after a detailed and thorough consultation, to exercise the practice of fire and rehire.

The government intends to review the code of practice in the autumn, following an exercise to collect views on the proposed amendments. Following this, the changes are expected to take effect in October 2026.

Fair Pay Agreement – adult social care

The adult social care industry is notoriously a low-paid sector. The Bill aims to enhance the market by introducing the Adult Social Care Negotiating Body (the ‘Negotiating Body’), which will be responsible for negotiating pay and terms and conditions for care workers. The Negotiating Body will comprise trade union representatives and employees working in the sector. The hope is that the introduction of the Fair Pay Agreement will address current recruitment and retention challenges in the industry. However, this change shall come with increased costs for employers who should expect to pay higher salaries and provide better working conditions.

Allocation of tips

From October 2021, over two million workers have seen an increase in the amount of money they take home each month. This was after the introduction of the Employment (Allocation of Tips) Act 2023, which requires employers to ensure that all qualifying tips, gratuities, and service charges are passed on to their workers without deductions (excluding statutory deductions).

The Bill will require employers to consult with trade union or elected representatives (or the workers directly) before publishing the first version of a written policy on the allocation of tips. The policy will need to be reviewed every three years, and employers will need to conduct anonymous surveys on how tips are allocated to ensure that workers feel free to speak up about any issues they consider unfair.

Prevention of sexual harassment

From 26 October 2024, employers have been under a duty to take ‘reasonable steps’ to prevent sexual harassment in the workplace. Reasonable steps include creating a policy on the standards of behaviour expected and what employees can do if this standard is breached, providing training, and undertaking risk assessments. The Bill extends the steps that must be taken to ‘all reasonable steps’ and gives the government the power to define ‘all reasonable steps’ in regulations. We await further information on these regulations.

Third-party harassment

Currently, employers are not explicitly/directly liable for harassment their employees are subjected to by customers/clients/other third parties. The Bill will change this position, making employers liable for third-party harassment, including sexual harassment, unless they took all reasonable steps to prevent it.

Trade union measures

Presently, trade unions do not have the right to access the workplace to recruit or organise members unless an employer agrees to provide access or it is ordered to do so by the Central Arbitration Committee.

The Bill is expected to provide trade union officials with greater access and improve trade unions’ ability to support and advocate for their members by:

  • repealing the requirement of minimum turnouts in strike ballots and minimum service levels during industrial action (which was only recently introduced by the previous conservative government);
  • requiring employers to remind workers in their terms of employment (section 1 statement) that they have the legal right to join a trade union. Employers will also be required to remind workers of this right regularly;
  • providing trade unions with a right to access workplaces in a regulated and responsible manner to meet, represent, recruit, and organise members;
  • reforming various aspects of existing trade union law to:
    • eliminate restrictions on trade union activities;
    • make ballots simpler and more flexible (including electronic votes);
    • stop the replacement of strikers with agency workers; and
    • reduce the threshold of support required for trade union recognition and simplify the statutory recognition process;
  • creating provision for improved resources, time for trade union reps to perform their duties; and
  • introducing new protections for trade union equality reps and against trade union-related intimidation and dismissal.

Extending tribunal time limits

The majority of employment tribunal claims must be brought within three months, minus one day, of the date the act complained of occurred. This has been viewed, for some time, as a relatively short period compared to disputes in civil courts, and potentially prejudicial to the pursuit of justice.

The Bill will extend the time limit to bring claims to six months. It was anticipated that this would apply to all claims. However, breach of contract claims have been omitted from the proposal. This may be a typo and inadvertent omissions, but only time will tell.

The extension of the deadline is expected to result in more employees bringing action against their employers. Therefore, employers must stay up to date with changes in employment law to mitigate the risk of litigation.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

Lawrence Stephens advises Scutum on strategic acquisition of IDS Fire & Security

Posted on: July 23rd, 2025 by Alanah Lenten

Lawrence Stephens has advised global security and fire protection provider Scutum UK & Ireland on its acquisition of IDS Fire & Security (Intruder Detection & Surveillance Limited), a leading provider of integrated fire safety and security solutions across the UK.

The acquisition includes three UK sites and marks a significant step in Scutum’s strategic expansion into the North East and North West of England. IDS Fire & Security is known for its customer-first approach and comprehensive service offering, including fire alarms, CCTV systems, and access control solutions tailored to commercial and industrial clients.

This transaction was completed alongside another acquisition for Scutum, with both deals closing within two days of each other, demonstrating the client’s ambitious growth strategy and the firm’s ability to deliver under tight timelines.

The Lawrence Stephens team was led by Corporate and Commercial Head Jeff Rubenstein, and supported by Director Nick Marshall, Senior Associate Krysha Hunt, Associates Charlotte Hamilton and  Isobel Moran and Solicitor Becci Collins . 

Jeff Rubenstein commented:

“We are proud to have once again supported our client Scutum, on this important acquisition, which further strengthens their presence in the UK market. Running two simultaneous transactions required close collaboration and a deep understanding of the client’s objectives. We’re pleased to have delivered on our promise and look forward to continuing our work with Scutum as they grow their UK footprint.”

Richard Jones, Chief Executive Officer of Scutum UK & Ireland, added:

“We are very grateful to the Lawrence Stephens team for their outstanding dedication and commercial insight throughout this process. Their ability to manage multiple complex transactions efficiently and under tight deadlines was instrumental in achieving our goals.”

The Employment Rights Bill: what comes next?

Posted on: July 22nd, 2025 by Natasha Cox

What happens next?

It is anticipated that six months after the Bill receives Royal Assent and the first amendments are implemented, the second wave of changes will take place. These changes will have a substantial impact on how employers manage the day-to-day operations of their businesses.

Collective redundancy

Currently, when an employer proposes to make 20 or more employees at one establishment redundant within 90 days, it must comply with the requirements of collective consultation. A failure to do so could result in a protective award of up to 90 days’ pay.

From April 2026, the protective award is expected to double to 180 days’ pay, per employee. The increased costs on employers for failing to comply with legislative requirements are hoped to reinforce that compliance is not optional. Redundancy, especially collective redundancy, remains a complex area of employment law. Proactively seeking legal advice proactively is essential to ensure legal compliance and protect the business.  

‘Day one’ paternity leave and unpaid parental leave

The current law requires employees to have one complete year of service to be eligible for parental leave and 26 weeks (assessed 15 weeks before the expected birth week). The Bill proposes removing the qualifying period so that the entitlement to leave becomes a right from the first day of employment. As more and more individuals become entitled to leave from the first day of employment, businesses will need to review how they operate on a day-to-day basis to ensure that these periods of leave do not adversely affect their staff by increasing their workload to unmanageable levels.

Whistleblowing protections – Sexual harassment

In October 2024, employers were required to take steps to prevent sexual harassment.

The Bill will introduce a protection for those who make disclosures of sexual harassment. By making disclosures about sexual harassment that has occurred, is occurring or is likely to occur a ‘protected disclosure’, the Bill protects those who make such disclosures from detriments, up to and including dismissal, under whistleblowing protections. Any dismissal in retaliation for making a protected disclosure shall remain automatically unfair.

Fair worker agency

The minimum standards to which employees are entitled are currently governed by their respective authorities. For example, HMRC monitors if employers are paying the national minimum wage.

From April 2026, we expect to see the introduction of an independent enforcement body, the Fair Worker Agency (‘the Agency’). The powers of the Agency will extend beyond merely enforcing the minimum standards to which employees are entitled. It shall also have the power to bring proceedings in the Employment Tribunal for employees who are unwilling to, or unable to, themselves. Throughout litigation, the Agency will provide legal assistance, support or representation to litigants in person. Where the Agency brings or assists in a successful claim, it shall be able to recover its costs from the employer.

The introduction of the Agency aims to improve business compliance with employment legislation. Employers’ practices will be under more scrutiny than ever, as individuals become increasingly educated about their rights and entitlements. Businesses should conduct regular HR audits to ensure they remain compliant with the ever-evolving employment laws. 

Statutory sick pay

Currently, employees are only eligible for Statutory Sick Pay (SSP) if they meet the following eligibility criteria:

  1. earn an average of at least £125 per week; and
  2. are ill for more than three days in a row (including non-working days).

The proposed changes will result in more employees being eligible. For the first time, all workers will be entitled to SSP, as the lower earning threshold has been removed, along with the three-day waiting period. Individuals will be entitled to SSP from their first day of illness, provided they are ill for two or more consecutive days. Therefore, the costs to employers will increase – prudent employers will be vigilant about workload and workplace practices that contribute to illness, in order to prevent individuals from becoming sick. They will also need to review their long-term absence policies and take proactive steps to facilitate a return to work.

Trade union measures

To modernise the balloting of union members and streamline processes, the bill will introduce ‘e-balloting’ and make the preferred use of electronic mail. The hope is that by improving efficiency, trade unions shall be able to provide improved and quicker support for their members.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

The Employment Rights Bill: The journey so far

Posted on: July 21st, 2025 by Ella Darnell

The Employment Rights Bill – the journey so far

Published in October 2024, the Employment Rights Bill (‘the Bill’) introduced 28 significant changes to transform employment law. The changes are comprehensive and will transform many aspects of employment. Affecting all industries, the Bill will impact all employees, and every business which engages workers.

As a key component in the Government’s ‘Make Work Pay’ plan, the aim of introducing the bill is simple, to improve employment rights for workers. The proposed changes are hoped to help more people stay in work and consequently for living standards to be improved. This week, we shall be publishing a series, taking each of the implementation stages in turn to explain the anticipated changes, concluding on Friday with considerations as to what employers can do to prepare.

Since October 2024, the Bill has made its way through many of the required stages, and on 1 July 2025, the government published a roadmap for its delivery. Most recently in parliament on 7 July 2025, the Bill is currently in the final stages in the House of Lords (the Report stage). Once the Bill is passed by the House of Lords, it will return to the House of Commons for consideration of the amendments made.

The projected road map provides employers with advanced warning of the order and dates the changes shall come into effect. While the implementation dates and the anticipated changes to the law may alter, proactive and prudent employers will take this time to educate themselves on what is expected, in order to ensure it is fully prepared. The saying “fail to prepare, prepare to fail” has never felt more relevant to employment law.

The roadmap

The Bill is expected to receive Royal Assent in autumn this year, and as early as September. As the first week of school summer holidays is upon us, and many employers are working with a reduced workforce, it is imperative that the upcoming changes are not overlooked and preparation is not postponed.

Whilst there is no guarantee the Bill will receive Royal Assent as planned, as the biggest changes proposed come from within the Government, it is hoped that they will not delay the Bill’s implementation. Employers must keep abreast of the immediate changes and developments as well as those expected in April 2026, and subsequent changes in 2027. to ensure compliance and reduce the risk of complaints and litigation.

Immediate effect and winter 2025

Repeal the Strikes (Minimum Services Levels) Act 2023 and the majority of the Trade Union Act 2016

Only recently introduced by the previous Conservative Government, the Strikes (Minimum Service Levels) Act 2023 provided the government the right to set out the minimum service level to be provided during strike action in the following industries:

  • Border security;
  • Decommissioning of nuclear installations and management of radioactive waste and spent fuel;
  • Education services;
  • Fire and rescue services;
  • Health services; and
  • Transport services.

The Trade Union Act 2016 introduced a number of restrictions on strikes, including restrictions on picketing, higher ballot thresholds and the requirement to provide longer notice periods.

The Bill is currently being amended to including provisions the Government consulted on in December last year in relation to simplify the information unions will be required to provide employers in relation to industrial action. We await confirmation of what the simplified information shall be. By reducing the information required, it is hoped that the scope for employers to request injunctions preventing industrial actions on the basis of a union’s failure to comply with the legislative requirements is reduced.

The Strikes (Minimum Service Levels) Act 2023 shall be repealed as soon as the Bill receives Royal Assent as will the majority of the Trade Union Act 2016, without consultation.

Protection for taking part in industrial action and being a trade union member

The Supreme Court recently held in Secretary of State for Business and Trade v Mercer that an employee who participates in industrial action is not protected from detriments short of dismissal for doing so.

As currently drafted, the Bill would introduce protection from detriments short of dismissal for employees who take part in industrial action. The rights of representatives of recognised trade unions would also be increased, to enable them to better support their members. Adding to a representative’s current right to paid time off, they would also be provided with reasonable facilities and accommodations to carry out their duties.

Consultation as to the protections and rights of trade unions are expected to begin as soon as winter 2025 with an intended implementation date in October 2026.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

Ethnic abuse in the workplace – a practical guide for employers

Posted on: July 18th, 2025 by Natasha Cox

Under the Equality Act 2010, employers are legally required to protect their employees from abuse or discrimination related to ‘protected characteristics’. There are nine protected characteristics: age, disability, gender reassignment, marriage, pregnancy, race, religion or belief, sex and sexual orientation.

Discrimination can take several forms, including:

  • Direct discrimination: treating someone less favourably simply because they hold a particular characteristic;
  • Indirect discrimination: treating everyone the same, which results in an adverse effect on people with a particular protected characteristic (which cannot be justified);
  • Harassment: unwanted conduct related to a protected characteristic which has the purpose or effect of violating a person’s dignity or creating an intimidating, hostile, degrading humiliating or offensive environment; and
  • Victimisation: subjecting someone to a detriment because they have done (or will do) something in connection with the Equality Act 2010 (including make complaints about discrimination).

Ethnic abuse in the workplace

We were recently instructed by an individual who was subjected to serious and disturbing abuse by her colleagues, based on her ethnic background and assumptions about her political opinions. There was no evidence to support any of these contentions, which had been circulated within the workplace as if they were fact. This conduct constituted discrimination, bullying and harassment. We were able to negotiate significant compensation for our client in relation to these potential claims, which would have caused reputational damage to her employer if they had been contested in an open tribunal.

Practical advice for employers

Abuse on the basis of ethnicity may manifest through offensive remarks, exclusionary behaviour, or more overt acts of hostility. Employers must be alert to the ways in which global events can trigger or exacerbate such conduct in the workplace, as they increasingly influence interpersonal dynamics and employee relations within diverse workforces.

The war in Ukraine, Israeli action in Gaza and the conflict between Israel and Iran are fuelling heightened sensitivities in UK workplaces. Employers must take steps to safeguard employees from discrimination, harassment, victimisation, or unfair treatment based on their religion, national origin and/or perceived political stance.

To minimise risk of Equality Act 2010 claims, employers should aim to provide a safe and inclusive work environment in which employees are able to feel comfortable raising concerns. Employers should avoid stereotyping or making assumptions about employees based on nationality. Indeed, they can help to prevent this by offering training on unconscious bias and cultural sensitivity.

Employers are advised to:

  • review and reinforce anti-discrimination and anti-harassment policies with a particular emphasis on preventing xenophobic or politically charged behaviour, including by promoting respectful dialogue in the workplace;
  • train managers in how to handle sensitive conversations and communications in a way which balances competing rights and freedoms;
  • monitor for signs of workplace tension or exclusion based on perceived religion, national origin or political or religious affiliations;
  • handle any grievances linked to political or religious tensions robustly;
  • manage reputational risk where employee conduct or public statements intersect with sensitive geopolitical issues, via disciplinary proceedings where appropriate; and

  • be alert to signs of stress presented by employees linked to external geopolitical events and signpost them towards mental health resources.

Take action today—review your workplace policies and ensure your team is equipped to prevent and address ethnic abuse. Contact the Lawrence Stephens employment team.

Upward-Only Rent Reviews Banned: What UK Leaseholders Need to Know

Posted on: July 17th, 2025 by Ella Darnell

As part of the newly introduced English Devolution and Community Empowerment Bill, the UK Government has unveiled plans to outlaw Upward-Only Rent Reviews (UORRs) clauses in commercial leases — a move that could reshape the future of landlord-tenant dynamics.

The ban will apply to new agreements where, on the date the lease is entered into, the new rent following a rent review is not known and cannot be determined. It will not impact those leases already in place however, if implemented, any clause in a new or renewal commercial lease, whether contracted out of the 1954 Act or not, requiring the rent not to decrease will be unenforceable.

The proposal, aimed at revitalising high streets and supporting small businesses, has already been met with mixed reception across the property sector and The British Property Federation has criticised the lack of industry consultation.

What Are Upward-Only Rent Reviews?

UORRs are a common feature in commercial leases in England and Wales. UORRs allow rent to increase or remain static at review dates – typically every five years – but never decrease, even if market rents fall. This industry accepted approach to commercial leasing has long been favoured by landlords for providing income certainty and supporting property valuations.

Tenant Perspective: A Welcome Relief

For tenants, particularly small and independent businesses, the proposed ban is likely to be regarded as a positive development. UORRs have incurred criticism for binding tenants to unsustainable rent levels, especially in volatile markets. However, the outlaw of UORRs will effectively transfer the risk from tenant to landlord.

As such, a decision will need to be made by landlords as to whether to adopt a fixed rent or to permit rent variation through a rent review clause that accommodates both rises and reductions in rent throughout the term of the lease.

Landlord Perspective: A New Risk Landscape

Landlords, however, will almost certainly have concerns about the reform. Whilst rental income from commercial leases is currently considered a stable and predictable revenue stream, the prohibition of UORRs will introduce greater volatility in cashflow. Furthermore, industry stakeholders will argue that the outlaw of UORRs will undermine the perceived security of rental income and place prospective commercial property developers at a disadvantage when seeking finance.

Landlords may therefore choose to obviate the balance between risk and reward by abandoning open market review clauses and opting for the stability provided by index linked reviews.

What Happens Next?

The proposed ban on upward-only rent reviews marks a significant shift in UK commercial leasing. Whilst it aims to give tenants greater flexibility and affordability, landlords face a more complex and potentially less predictable income landscape.

In order to counteract this, it is possible that landlords will take a more aggressive stance at the outset of negotiations to mitigate the risk of stagnant or falling rents. Similarly, the inclusion of tenant-friendly terms, such as break clauses and rent-free periods, may become less prevalent as landlords reassess their leasing strategies.

Alternatively, landlords may opt for shorter leases which are to be contracted out of the Landlord and Tenant Act 1954. The potential drawback of this approach is that the cost of reletting the property will likely be passed to the tenant.

We may also see more pre-agreed stepped rents being negotiated (such increases would not be caught by the ban as the rent would be known at the outset) and this would give both tenants and landlords certainty at the start of a lease as to how much rent will be payable at any given time during the lease term.

Ultimately, the success of this legislative change will depend on how effectively the market adapts to a model that seeks to balance commercial flexibility with financial viability. As the Bill progresses through Parliament, stakeholders on both sides will need to stay alert to legislative developments and prepare for a new era in lease negotiation.

For more information on our Commercial Real Estate team, click here.

Authors

Nickhil Mandora

Louisa Hartley

Sophia Dixon

Digital Asset Law Reform: Key Takeaways for UK Advisers

Posted on: July 17th, 2025 by Natasha Cox

Following the Law Commission’s proposals for crypto and digital asset reform regime, Director Matt Green explores what these proposals mean for advisers – as well as those looking to recover stolen or hacked cryptocurrency.

Matt’s article was co-authored with Ashley Fairbrother, Partner at Edmonds Marshall McMahon.

Matt and Ashley’s article was published in FT Adviser, 16 July 2025, and can be found here.

In June 2025, the UK’s Law Commission proposed new powers to drastically help victims of fraud following the loss of cryptoassets where key details, like the bad actors’ details, are unknown. These proposals would allow courts to grant free-standing information orders at the outset of crypto fraud investigations, before the victim needs to commit to pursuing a substantive claim.

This may prove to be a vital legal reform and significantly increase access to justice, especially when victims have lost significant funds, and do not want to risk spending more money pursuing unknown parties who may or may not still hold funds.

The crypto fraud epidemic

Fraud concerning cryptoassets is a significant issue for consumers and businesses alike. Chainalysis’s “The 2025 Crypto Crime Report” notes that ‘pig butchering’ scams (i.e. scams via social engineering) have increased 40% year on year, and cost victims a total of $9.9 billion as of 2024. Separately, Chainalysis’s report notes that $2.2billion was stolen from crypto platforms across this period.

Last year, Action Fraud – the UK’s reporting centre for fraud and cybercrime – reported over 649,000 instances of investment fraud, with 66% attributed to crypto investment related schemes. Individuals are losing life savings, family homes and pensions, and taking out astronomical loans to pay fraudsters who demand more money to release funds already taken under the guise of investment profits.

Scams are often initiated by telephone calls, texts and emails from actors purporting to be from major cryptocurrency exchanges or banks who hold convincing personal data, usually obtained via data scraping, to harbour a victim’s trust and eventually extract funds. Assets are then typically laundered to facilitate human trafficking, drugs trades and organised crime.

Currently, victims can follow their funds across their respective blockchains by providing practitioners with their transaction identifiers, which show the funds being withdrawn or sent from their control to the fraudster. Following a traceable laundering process, funds can end up at centralised retail outfits like Binance, Kraken and Coinbase, offshore swapping services like SimpleSwap and ChangeNow, to purportedly decentralised outfits, who offer services without obtaining Know Your Client documents or Anti Money Laundering checks, performing permissionless transactions.

Once at these exchanges, victims need to know key information to consider the viability of pursuing a legal claim, including details of the exchange’s customer, information concerning internet-protocol addresses, trading histories and, of course, the balances held at accounts. Without this information, it is extremely difficult to consider whether a victim should spend good money chasing lost assets, and in most reported cases, victims have taken a high-risk approach in pursuing “persons unknown” with limited information.

To obtain this material, lawyers can use gateway 25(b) of the Civil Procedure Rules (which dictate the rules around litigation in England and Wales), which requires victims to start a substantive claim alongside an application for disclosure of information. This means they must be prepared to sue someone and detail the claim clearly at that stage.

As a commercial proposition, this might be extremely costly. The Law Commission recognises this at paragraph 3.78 of its report, where it states that “victims are not always able to say that they definitely intend to commence proceedings in England and Wales”

Similarly, to obtain wider reliefs against perpetrators, including a worldwide freezing injunction which prohibits the defendants from moving or dissipating their assets globally up to the value of the claim, the victim must also show from the outset that they have other assets to the value of the loss, on the basis that the injunction detriments the defendants unfairly. This is an enormous burden for any victim of fraud to overcome, without really knowing anything about the defendants.

Currently, the bar to entry is very high. Only those with deep pockets, and a high appetite for risk, can pursue their funds via the courts.

The Law Commission’s proposal

The Law Commission has recently published the “Digital assets and (electronic) trade documents in private international law, including Section 72 of the Bills of Exchange Act 1882, consultation paper” to assist victims, by allowing the court to grant a “free -standing information order to assist a claimant at the initial investigations stage of the proceedings”.

Should the proposal be successful, this would allow victims to assess the viability of the claim and consider the facts at hand without starting a formal claim. The costs might be substantially lower, and without the risk associated with formal litigation.

The proposed test for granting one of these orders is provided at paragraph 4.92 within the consultation paper, and summarised as:

  1. The case has a certain strength, in that the claimant must evidence a wrongdoing;
  2. The disclosure of this information is necessary to allow the victim to bring legal proceedings or other redress;
  3. The court must be satisfied that there is no other court in which the claimant could reasonably bring the application for disclosure;
  4. The court must be satisfied there is an adequate link to England and or Wales. For example, that the victim resides, domiciles or is a national here. This might also include (though not explicit in the paper) that the defendant purports to have an adequate connection to this jurisdiction – for example where a scam investment website says the company is registered in England.

Effect and next steps

In principle, this initiative will drastically lower the obstacles to recourse by giving victims a cost-effective solution to assess a claim’s viability and mitigate litigation risks early on. A consultation period for this paper is open until 8 September 2025, and many law firms and individuals have already backed the Law Commission’s above proposal, including both of us as authors of this piece as well as our peers including Nathan Capone at Fieldfisher.

This reform is vital in widening access to justice by revolutionising the initial stages of crypto asset recovery by removing substantial financial and procedural barriers that currently prevent many victims from commencing a claim.

To find out more about our Blockchain and Digital Assets services, please click here

 

Mo Pasricha interviewed on talkSPORT

Posted on: July 14th, 2025 by Ella Darnell

Head of Sports and Entertainment Mo Pasricha was recently featured on the weekday mid-morning sports programme talkSPORT.  Speaking to well-known radio and television presenter Jim White and co-presenter Simon Jordan, businessman, media personality and former chairman of Crystal Palace Football Club, Mo discussed a range of topics, including:

  • the role of lawyers behind the scenes in the modern game
  • the debate around profitability and sustainability rules (PSR) and whether it can work in football.
  • the intricacies of regulatory enforcement, including Manchester City’s 115+ charges. The Premier League charged City in 2023 with breaking financial fair play rules on 115 occasions, and Mo provided insight into the charges case and the potential outcome.

talkSPORT is the go-to station for sports fans in the UK, especially those passionate about football, rugby, and boxing. The video of the interview is available on talkSPORT’s YouTube video channel here.

For more information on Sports and Entertainment services, please click here.