United Kingdom: Employment and HR

A job offer marked “subject to” satisfactory references, right to work checks and a probationary period might feel like a holding position, something that binds no one until every box has been ticked. It is a reasonable assumption, and one that employers have often relied upon. But as a recent Employment Appeal Tribunal ruling has made clear, that assumption can also be a costly one.

For many employers, particularly SMEs, the pressure to retain good people is running ahead of what the payroll can support. Salary increases commit a business to ongoing cost, and in a period of squeezed margins and economic uncertainty, that is a commitment many cannot responsibly make. The question, then, is how to keep valued employees engaged and motivated when a pay rise is not the answer.

The Government has now confirmed the timing for the changes to ordinary unfair dismissal law under the Employment Rights Act 2025. Both the removal of the cap on the compensatory award...

U.K. employers face significant new obligations regarding sexual harassment prevention, including expanded whistleblowing protections for those reporting harassment and a heightened duty to take "all reasonable steps" to prevent harassment from both employees and third parties. These changes, taking effect between April and October 2026, require comprehensive risk assessments, updated policies, and robust training programs to avoid potential compensation uplifts of up to 25%.

The UK government has updated its statutory guidance on gender pay gap reporting, requiring employers to base their reporting on biological sex rather than gender identity.

The Employment Appeal Tribunal (EAT) has provided important guidance on the scope of third‑party liability under sections 111–112 Equality Act 2010, in a case concerning drug testing in a safety‑critical industry.

The Pensions Regulator has issued new guidance on releasing defined benefit pension surpluses, outlining key principles for trustees and employers to consider during surplus release discussions.

Welcome to your weekly update from the A&O Shearman Pensions team, covering all the latest legal and regulatory developments in the world of workplace pensions.

The government has published a consultation on draft regulations setting out new conditions for payment of DB scheme surpluses to employers, following the changes made in the Pension Schemes Act 2026...

The Government has now confirmed the timing for the changes to ordinary unfair dismissal law under the Employment Rights Act 2025. Both the removal of the cap on the compensatory award...

Section 152 and Schedule 12 of the Employment Rights Act 2025 (ERA 2025) will increase the primary time limit to bring most employment tribunal claims from three to six months.

In Tarbuc v Martello Piling Ltd [2026] EAT 58 the Employment Appeal Tribunal (EAT) held that an employment tribunal misapplied section 111A of the Employment Rights Act 1996 (ERA 1996) by excluding evidence relating...