HR Update - January 2025

Happy New Year! We hope you had a well-deserved break and are feeling refreshed for the exciting opportunities and challenges that lie ahead in 2025. This year, we’re shaking things up! Instead of a single voice leading each edition of the HRP Newsletter, we’re bringing you a collaborative approach- or partnering if you will!  Myself and our Senior Business Partners will be sharing insights on the latest HR trends, key updates, and thought-provoking topics that matter most to you. We’re looking forward to keeping you informed, inspired, and engaged throughout 2025!

As we step into 2025, it’s already shaping up to be a pivotal year for HR professionals and employers alike. With significant changes to UK employment law on the horizon—covering everything from unfair dismissal rights to statutory pay increases—it’s more important than ever to stay ahead of the curve.  As ever, we will endeavour to break down the key legislative updates you need to know, share actionable, practical tips for preparing your workplace, and spotlight strategies to keep your teams engaged and thriving in the long term

Here’s to a year of progress, innovation, and success in all things people.

Vicki Kneafsey

 

Unlocking Employment Law: What’s Changing & Why It Matters

Nicola Smith

Fire and Rehire- Changing contractual clauses

Effective from 20 January 2025, employment tribunals have been granted the authority to adjust compensation by up to 25% in protective award claims where employers unreasonably fail to adhere to the statutory Code of Practice on dismissal and re-engagement. This is commonly known as 'fire and rehire' and is primarily used by employers who wish to amend an employee’s contract of employment. The Statutory Code of Practice on Dismissal and Re-engagement (effective 18 July 2024) requires employers use 'fire and rehire' as a last resort, ensure meaningful consultation takes place with employees and that they explore all possible alternatives (it should be a last resort only). Looking ahead, the UK government has proposed more reforms to restrict 'fire and rehire' practices even further, aiming to ban them in all but the most exceptional of circumstances.  If you are considering amending your employees’ contracts of employment, we strongly recommend that you reach out for us for support prior to beginning discussions.

 

Neonatal Care (Leave and Pay)

Parents who find themselves in the unexpected situation of their child requiring neonatal care often spend the first few weeks, (or sometimes even months) of their leave in hospital with their newborn. Plans to spend that time with their baby at home adjusting as a family are very much delayed, yet currently parents are required to use their maternity leave or paternity leave to cover this time spend away from work. They are then faced with returning home having already spent a significant amount of their leave with their baby in hospital in the most traumatic of circumstances, rather than enjoying their leave bonding with their newest family member. The negative impact of this can be significant, including stress for both parents during this time and feeling that they have lost out on precious time at home. There is also evidence to suggest it can leave some mothers feeling forced into resigning at the end of their maternity leave as they were not ready to return when their leave ran out.

To combat this the UK’s new Statutory Neonatal Care Leave and Pay is set to take effect from 6 April 2025, offering up to 12 weeks of additional leave for eligible employees whose babies require at least 7 consecutive days of neonatal care within the first 28 days of life. This leave will be in addition to existing Maternity, Paternity, or Shared Parental Leave entitlements. While eligibility criteria have been confirmed—requiring at least 26 weeks of continuous service and meeting the minimum earnings threshold—the exact Statutory Neonatal Pay (SNP) rate has yet to be officially confirmed. Neonatal leave is to be taken in blocks of a week, (for every week that the baby is in hospital), for a maximum of 12 weeks. Pay is expected to be the same as other family-related statutory pay such as SMP. We are eagerly awaiting the publication of the final regulations and will be reaching out to our subscribed clients with a shiny new policy, training and communication package. If this is something you will need support with, please reach out.

 

Legal Spotlight: Key ER Cases You Need to Know

Vicki Kneafsey

Fitzgerald v. NHS Trust (2024): 400 days sick- Unfair Dismissal Ruling and £10,000 in Damages

In a recent ruling, an NHS cleaner who was dismissed after taking 400 sick days over four years was found to have been unfairly dismissed by an employment tribunal. The tribunal highlighted that while the employee's frequent absences, primarily due to long-term illness, had caused operational difficulties, the employer failed to properly consider reasonable adjustments under the Equality Act 2010. The tribunal emphasised that the NHS Trust did not sufficiently explore alternatives such as redeployment or offering support to manage the illness.

This case serves as a key reminder for employers to carefully consider their obligations under disability discrimination laws which can be extremely complex. It also underscores the importance of formally considering reasonable adjustments and having a clear, fair process in place before taking any dismissal action related to health-related absences.

 

Marshall v. Waitrose (2024): Sex Discrimination Ruling and £12,000 in Damages

In a significant ruling, Emily Marshall, a former Waitrose employee, was awarded £12,000 in damages after an employment tribunal found she had been discriminated against on the basis of sex. Marshall, who worked a four-day week due to childcare responsibilities, was accused of "skiving" and was subjected to less favourable treatment compared to her male counterparts. Despite her role being performed to the same standard, the tribunal ruled that Waitrose had failed to provide sufficient evidence to justify the treatment and found that the decision was rooted in gender bias.

This case highlights the importance for employers to ensure that any policies or practices related to flexible working are applied consistently and fairly. Employers must be cautious of gender stereotypes and ensure that employees, particularly women with childcare responsibilities, are not unfairly treated or penalised for taking advantage of flexible work options.

 

HR Hot Takes: What's Sparking Discussion in HR

Jack Williams

Lloyds Banking Group have followed in the footsteps of other big companies, such as Amazon, Meta and JP Morgan in mandating that their employees return to the office. However in this case the bank has gone one step further- by tying senior bonuses to office attendance in a move which has got the world of HR talking. Most of the commentary is not positive. While it’s clear the organisation is trying to encourage in-person collaboration, linking pay rises, promotions, and bonuses to turning up in the office is a risky move - both from a legal perspective, and from a talent attraction and retention strategy.

The biggest issue is fairness. Not everyone can be in the office regularly, whether it’s because they’re juggling caregiving responsibilities, dealing with health issues, or living further away. These policies could end up penalising talented people who’ve shown they can deliver great results from home. It sends a message that showing up is more important than what you actually achieve—and that’s where it starts to feel like a step backwards.

Productivity is not the same thing as being in the office. Plenty of organisations have thrived with hybrid and remote working, and employees have proven they can do their jobs just as well without the commute. If businesses want people back in the office, they should focus on making it somewhere people want to be—creating a culture where collaboration and creativity thrive.

An additional issue is the phenomenon of malicious compliance as a concern. This happens when employees technically follow the rules but does so in a way that disrupts productivity, undermines team dynamics, or even harms the company culture. For example, employees may show up in the office exactly as required, but with minimal engagement or enthusiasm, creating a toxic environment or even slowing down workflow. While the letter of the RTO mandate is followed, the spirit is undermined.

Flexibility isn’t just a perk anymore; it’s what employees expect. Companies that start tying rewards to office attendance risk alienating their workforce at a time when keeping top talent is already a challenge. Instead of focusing on who’s in the office, let’s focus on what people deliver—surely that’s what really matters?

What do you think?

 

The HR Compass: Navigating the Future of Work

Vicki Kneafsey

What about the Human in Human Resources? AI in HR: Navigating Innovation, Ethics, and Emerging Pitfalls

Artificial Intelligence (AI) is rapidly changing (or will change) the way businesses manage their most valuable resource. Of course, here at Team HRP we will always class this as an organisation’s people!  From automating routine HR tasks to providing data-driven insights for smarter recruitment and employee engagement, AI can improve efficiency and support decision-making processes. In 2025, AI tools are expected to offer even deeper insights into people analytics, further transforming the HR landscape.

Currently, many employees are adopting AI tools like ChatGPT on an individual basis, rather than through organisation-wide initiatives. Whether it’s drafting emails, generating ideas, or conducting research, many employees are increasingly using AI to boost productivity without formal support from their employers. While this can enhance individual efficiency, it also raises concerns about consistency and data privacy as these tools may be used outside company policies. Without clear guidelines, companies may struggle to ensure that AI usage aligns with data protection standards or intellectual property policies. Furthermore, employees using AI in isolation could unintentionally create silos or fail to integrate AI-generated insights with broader team objectives.

Another challenge is algorithmic bias, which occurs when AI systems unintentionally reinforce existing biases in training data. Algorithmic bias in action was highlighted in a 2018 study by ProPublica, which found that an AI system used in the criminal justice system to assess the risk of reoffending was biased against Black defendants. The study showed that the system overestimated the risk of reoffending for Black individuals while underestimating the risk for white defendants. This kind of bias can be rooted in the data used to train the AI system, which reflected historical disparities in arrest rates and sentencing. Similarly, in the hiring process, AI recruitment tools—if trained on biased or unrepresentative data—can inadvertently perpetuate gender or racial disparities. A 2019 study by The Gender Shades Project revealed that facial recognition software was far less accurate at identifying people with darker skin tones or women, leading to skewed hiring decisions. For organisations, these biases can not only expose them to legal risks under anti-discrimination laws but also undermine their diversity and inclusion efforts.

An emerging growing concern of AI use in people practices is “snitch tagging”. Snitch tagging refers to the practice of reporting or flagging colleagues' actions, typically in relation to adherence to workplace rules, either by employees or employers. For employees, this can mean using monitoring tools or informal channels to snitch on a colleague’s lateness, missed deadlines, or non-compliance with company policies. For employers, it refers to using digital surveillance or performance tracking systems to monitor and flag employee behaviour or productivity.  Whether initiated by employees or employers, snitch tagging can foster a toxic work environment, eroding trust and collaboration by promoting surveillance over open communication and teamwork.

Employees may feel watched and mistrusted, which can breed resentment and harm true collaboration.

As we continue to embrace the potential of AI in HR, it’s important to remember that it’s the humans who matter most. Technology can enhance our processes and provide valuable insights, but it should never replace the empathy, understanding, and cultural awareness that define effective HR and people management. AI should be a tool for supporting, not supplanting, human decision-making. As Mo Gawdat rightly puts it in Scary Smart, “AI is here to help us, not replace us.” In the end, while AI can assist in making data-driven decisions, the final decision should always rest with the human who understands the broader context, emotions, and impact of those choices.

 

Focus on Jackson Hogg HRP- Did you know that we offer…..?

Expert Support for Complex ER Cases – On Demand or part of our Subscription Services

Handling tricky employee relations (ER) cases can be time-consuming, legally complex, and high stakes for any business. Whether it’s long-term sickness absence involving potential disabilities, complex disciplinaries, grievances, performance management, or sensitive issues like discrimination or whistleblowing, we can provide expert, hands-on support to guide you through every step.

Our team can assist with everything from drafting correspondence and coaching managers to getting totally hands on and leading formal meetings, facilitating protected conversations, and even supporting with COT3 and settlement agreements if required. This is available for organisations without HR support but also to support an existing in-house HR team where workload capacity or subject matter expertise is an issue.

If you need an outside perspective or require total independence for sensitive ER matters, we can also step in as an impartial third party offering objective, expert-led support to ensure fairness, compliance, and a smooth resolution.

We offer this as part of a retained service for ongoing support or on an On Demand on a pay by the hour basis, giving you flexibility depending on your needs. If you need more details please reach out to HRPartnership@jacksonhogg.com