Essential HR & Employment Law updates for February
With February Half Term fast approaching, it’s crucial to stay ahead of the latest Employment Law and HR developments that can impact your business.
This month, we’re covering essential updates and best practices that ensure your organisation remains compliant, efficient, and prepared for growth.
We’ll look at the hot topic of AI and whether your business is ready to embrace change, recent regulatory changes including the new Neonatal Care (Leave and Pay) Act 2023 and Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment of Schedule A2) Order 2024 and how they affect your business, and a recent case that shows just how important it is to follow a fair Grievance Procedure.
Let’s get started with this month’s updates.
Do you have an AI Policy in place?
AI is a hot topic and not something that should be overlooked or underestimated.
According to an article by the BBC, research by Software AG has revealed that half of employees who primarily work at a desk or computer use personal AI tools at work, but this can have consequences for your business.
When personal AI tools are being used without permission, the tools are unlikely to have been checked and this could lead to exposure of trade secrets and possible data breaches.
AI has its clear advantages both for employees and employers, including increased productivity and making interactions more relevant and engaging, but this should be managed to reduce risks. Having a clear policy in place is a great start, and some employers are even taking the plunge and creating their own AI software to enable the safe use of AI among their staff.
Having an AI policy at work is crucial to ensure responsible, ethical, and effective use of AI. It helps staff understand how AI should be integrated into workflows, clarifies expectations around data privacy and security, and minimises risks such as bias, misinformation or data breaches. A clear policy also promotes transparency, fosters trust, and ensures compliance with legal and regulatory requirements. Ultimately, it empowers employees to use AI confidently while aligning its use with your company’s values and goals
The NEW right to Neonatal Care Leave and Neonatal Care Pay
The Department for Business and Trade have confirmed that, following the Neonatal Care (Leave and Pay) Act in 2023, a day one right to Neonatal Care Leave for working families with babies in neonatal care will be introduced from 6 April 2025.
Neonatal Care Leave will apply to parents of babies who are admitted into neonatal care up to 28 days old and who have a continuous stay in hospital of 7 full days or longer. This will allow eligible parents to take up to 12-weeks of leave, on top of any other leave they may be entitled to (including Maternity and Paternity leave).
Alongside the leave entitlement, Statutory Neonatal Care Pay will be available to those who meet continuity of service requirements and a minimum earnings threshold, and the level of pay is likely to mirror the rate of pay for other family related leave (Statutory Maternity / Adoption Pay, Statutory Paternity Pay, Statutory Parental Pay, Maternity Allowance and Statutory Bereavement Pay) although the regulations remain in draft form at present, subject to Parliamentary approval.
The NEW 25% uplift or reduction in compensation relating to Fire & Re-Hire
The introduction of the Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment of Schedule A2) Order 2024, on 20 January 2025, means that if a successful claim is brought under section 189 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA 1992) for an award where an employer has failed to inform and consult on collective redundancies, in a “fire and re-hire” situation, then an employment Tribunal can increase or reduce the award by up to 25%, if one of the parties has unreasonably failed to comply with the statutory Code of Practice on Dismissal and Re-engagement (the Code) or another applicable code of practice.
It is important to note that the government did not include any transitional provisions and so Tribunals could apply an uplift or reduction in any claims that have not yet been heard (to which the Code applies), not just new claims brought since 20 January 2025.
The Code does not apply where the prospect of fire and re-hire was raised with employees or their representatives before 18 July 2024.
This change is important for employers, as it increases the potential financial and legal risks associated with failing to follow proper consultation procedures in “fire and re-hire” situations. If your business is consulting with staff, ensuring adherence to the Code will help you to mitigate risks, maintain fair employment practices, and avoid costly legal disputes.
The costly mistake of failing to follow up a Grievance
The case of Eddie Stobart Ltd v Graham has caused quite a stir, and many haven’t seen past the initial headline of the injury to feelings award being reduced from £10,000 to £2,000, however, there is a BIG lesson for companies within the judgement.
This case centres around the claimant who was placed at risk of redundancy whilst pregnant. The claimant sent a grievance about the redundancy process by email, but it was blocked by the employer’s firewall system and was not read.
The claimant later mentioned this grievance email at her redundancy consultation meeting and was advised to re-send the grievance to a different address, which she did, but it was blocked again.
The claimant was subsequently dismissed and at a later discussion with HR about her maternity pay, she again mentioned her unanswered grievance, but the employer did not follow the matter up.
She brought a Tribunal claim alleging that she had been unfairly dismissed and had suffered various forms of unlawful detriment, pregnancy and maternity discrimination and victimisation.
The Tribunal originally awarded the claimant £10,000 for injury to feelings in respect of pregnancy/maternity discrimination and detrimental treatment, but this was reduced to £2,000 following an appeal by the employer. The Tribunal noted that although the emails were not blocked for any reason connected to her maternity leave (thus not related to a discriminatory act), the employee was chasing up her grievance at a time when she should have been enjoying her maternity leave.
The case is a stark reminder that even where the failure by the employer seems relatively limited (and not due to their deliberate acts), a fair and proper procedure must be followed in relation to grievances. Once an employer becomes aware of a grievance, it must be addressed appropriately and cannot be ignored. While in this instance the claimant’s compensation was decreased, this should not be seen as justification for bypassing grievance procedures or failing to adhere to proper protocols. Employers must still handle grievances in line with best practices to maintain fairness, minimise risk, and uphold workplace standards.
Next steps
As always, if you have any Employment Law or HR questions (whether related to the above or not), have a chat with our Employment Team.