Tag Archive for: Employment

Holiday records and the Fair Work Agency: What employers need to know

Home | Employment

The Employment Rights Act 2025 marks a significant step towards strengthening workers’ rights and improving the enforcement of employment law in the UK. A key development is the establishment of the Fair Work Agency (FWA), which launched on 7 April 2026 to bring several existing enforcement functions under one roof. For HR professionals, one of the most immediate changes is the new legal requirement, effective from 6 April 2026, to maintain adequate records demonstrating compliance with statutory annual leave and holiday pay obligations. Employers must retain these records for six years. With the FWA expected to begin enforcing statutory holiday pay rights from 2027, now is the time to review record-keeping practices, payroll processes and holiday policies to ensure your organisation is prepared.

What is the Fair Work Agency, and what does it mean for employers?

The FWA brings together existing enforcement functions, including those relating to the National Minimum Wage, employment agencies and labour exploitation. Its remit is intended to expand over time, including the enforcement of statutory holiday pay and statutory sick pay.

The aim is to provide a more coordinated approach to employment rights enforcement, making it easier to identify non-compliance and take action against employers who fail to meet their obligations. For responsible employers, this also means greater access to guidance and support to help them comply with the law.

What are the new holiday recording requirements?

Since 6 April 2026, employers have been legally required to maintain records that clearly demonstrate compliance with statutory holiday entitlements.

Records should cover, as applicable:

  • Holiday entitlement and leave taken: sufficient information to demonstrate that workers receive their statutory annual leave entitlement.
  • Holiday carried over: records of leave carried forward between leave years, including where relevant circumstances permit this.
  • Holiday pay: evidence of payments made and the calculations used to determine the correct amount, including relevant elements of normal pay such as commission or regular overtime where applicable.
  • Payments in lieu of holiday: records of payments for accrued but untaken statutory holiday when employment ends, where payable.

Records must be retained for six years from the date they were made. Employers can choose the format that best suits their organisation, whether this is an HR information system, payroll software or a spreadsheet, provided the records are sufficiently complete and accessible.

What happens if an employer fails to comply?

Failure to maintain adequate records can constitute a criminal offence. The legislation provides for enforcement action, and potential consequences may include financial penalties. Separately, inaccurate holiday pay calculations may result in underpayments and further enforcement action.

The FWA is expected to take on enforcement of statutory holiday pay rights from 2027, with this not expected to begin before April 2027. Employers should not, however, treat this as a grace period: the record-keeping obligation is already in force.

Does this mean our existing systems are no longer sufficient?

Not necessarily. Many organisations already record annual leave through HR systems and process holiday pay through payroll. The key question is whether those systems collectively provide adequate evidence of compliance, rather than simply recording that leave was booked or a payment was made.

Employers should pay particular attention to workers with irregular hours, part-year workers, variable pay arrangements and employees leaving the business, as these situations can make holiday entitlement and pay calculations more complex.

What actions should HR take now?

  1. Audit existing records and systems. Review HR, time-and-attendance and payroll systems to identify gaps. Check that records demonstrate entitlement, leave taken, carry-over, holiday pay calculations and relevant termination payments.
  2. Confirm the six-year retention period. Update document-retention schedules and ensure historic records are preserved for the required period. Check that information remains accessible when systems are replaced or upgraded.
  3. Review holiday pay calculations. Work with your payroll teams or providers to confirm that statutory holiday pay is calculated correctly for different worker groups, particularly where pay varies due to commission, overtime or irregular working patterns.
  4. Clarify responsibilities. Establish who is responsible for recording leave, checking calculations, reconciling HR and payroll data, and responding to requests for evidence. Document the process and arrange regular checks.
  5. Check data protection arrangements. Ensure holiday and payroll records are securely stored, access is appropriately restricted, and retention practices comply with UK GDPR data protection requirements.
  6. Prepare for increased scrutiny. Monitor official guidance from the FWA, Acas and the government as enforcement arrangements develop. Review relevant policies and provide training to HR and payroll teams and line managers.

Conclusion

The introduction of the Fair Work Agency represents a shift towards more coordinated enforcement of employment rights, while the new holiday record-keeping requirements place an immediate responsibility on employers to demonstrate compliance. Employers should prioritise accurate, accessible records and reliable holiday pay processes now, rather than waiting for the FWA’s enforcement to begin. A proactive review can help reduce legal risk, protect workers’ entitlements and give the organisation confidence that its practices meet the new requirements.

If you have any questions about this topic or would like support for another HR matter, please contact Sue Meehan Boyes in the at Narrow Quay HR team at smeehanboyes@narrowquayhr.co.uk.

Black History Month – Beyond October: What does meaningful inclusion look like all year round?

Home | Employment

Every October, workplaces across the UK mark Black History Month. Posters go up, a speaker is booked, reading lists are shared on the intranet, and a message from the chief executive lands in everyone’s inbox. Then November arrives, and the conversation quietly stops.

None of that is wrong. Celebration matters. But if October is the only month in which race and inclusion are discussed openly, employees notice – and so does your retention data. The harder question is what happens for the rest of the year.

What does your data tell you?

Meaningful inclusion begins with honesty rather than aspiration. Research by the Chartered Institute of Personnel and Development (CIPD) found that Black, Asian and minority ethnic employees were significantly more likely than white British employees to say their career progression had failed to meet expectations – 44 per cent of Black employees, against 31 per cent of white British employees. One in five said discrimination had played a part in that, compared with around one in ten white British colleagues.

Business in the Community found that 74 per cent of Black employees wanted progression, compared with 42 per cent of white respondents, yet a third felt their ethnicity would be a barrier to their next move. That concern was shared by just one per cent of white employees. Ambition is not the issue; access to opportunity is.

So, look at your own numbers without defensiveness. Who is being promoted, and how quickly? Who is on the high-potential list? Who receives the stretch projects and client-facing work that lead to promotion? Who is leaving, and what do they tell you on the way out? Ethnicity pay gap reporting remains voluntary in Great Britain, but many employers publish anyway, because measuring is the first step to changing.

Progression, not just recruitment

Many organisations pour their energy into attracting diverse candidates and far less into helping them get on once they arrive. When the CIPD asked employees what would most improve their progression, the answers were strikingly practical: more transparent career paths, access to mentors, better quality line management at key career moments, and seeing people like them already succeeding at senior levels.

Clarity is a cheap and powerful intervention. Where promotion criteria are vague and decisions informal, those who progress tend to be the people already closest to the decision-makers. Writing down what “ready for the next level” means, publishing salary bands and recording promotion rationales benefits everyone and removes the places in which bias thrives.

Mentoring helps; sponsorship changes careers. A mentor offers advice; a sponsor puts your name forward in the room you are not in. If senior leaders are not actively advocating for Black talent in succession and promotion discussions, make that an explicit expectation of leadership, with accountability attached.

Everyday experience is where culture lives

Inclusion is felt in small, daily moments: whether your idea is credited, your name pronounced correctly, a “joke” challenged, or a concern raised without you being labelled difficult. CIPD research into building inclusive workplaces found that minority ethnic employees were significantly more likely to say they had to change aspects of their behaviour to fit in at work – an invisible tax on performance.

Line managers carry most of this weight, usually with the least training. Equip them properly: how to hold a career conversation, how to respond when someone reports racism, and how to interrupt a microaggression without creating a spectacle. Make sure your reporting routes are trusted, with outcomes people can see.

Practical steps for the rest of the year

  • Build a twelve-month inclusion calendar, so learning and listening are not compressed into four weeks, and report progress to your board with the rigour you apply to finance.
  • Review promotion, pay and performance processes annually for disparate outcomes, and act on what you find.
  • Resource your network or employee resource group properly – with budget, sponsorship and time – rather than relying on goodwill and unpaid lunches or evenings.
  • Never assume Black colleagues wish to lead this work; invite rather than expect and recognise or reward those who contribute.
  • Keep October celebrations but connect it to commitments: pair every event with a measurable action and report back on it in the Spring.

A final thought

Meaningful inclusion is not a campaign. It is a set of habits. It looks less like a themed lunch and more like a manager who develops everyone in their team, a promotion process people trust, and leaders who ask uncomfortable questions in March as readily as in October.

If you would like to talk through any of the themes in this article – from reviewing your progression and pay processes to training managers or handling concerns about race at work, please contact Jo Bradbury in the Narrow Quay HR team at jbradbury@narrowquayhr.co.uk.

The Manchester City case: What can HR learn about workplace investigations?

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Whether you’re a football fan or not, it’s hard to have missed the headlines surrounding Manchester City and the investigation into alleged financial rule breaches. While the world of Premier League football might seem a long way from the day-to-day challenges of HR, there are some surprisingly relevant lessons here, particularly when it comes to workplace investigations. The big takeaway? Don’t let things drag on, keep your eye on the facts and don’t let the rumour mill take over. These are simple principles but getting them right can make a real difference to how an investigation unfolds.

Why is it so important not to let investigations drag on?

One of the striking things about the Manchester City case is just how long it has taken to get to this stage. Concerns were raised in 2018, charges were announced in 2023, and the commission’s decision followed in 2025. And, as is often the case with complex legal proceedings, that hasn’t necessarily been the end of the story.

Now, I’m not suggesting that a workplace grievance is quite on the same scale as a Premier League investigation! But the principle is much the same: the longer it takes to resolve an issue, the more complicated things can become.

In the workplace, delays can mean more disagreements, more allegations and more people getting drawn into the situation. Positions become entrenched, relationships suffer and what started as a relatively straightforward complaint can turn into a much bigger headache.

Meanwhile, the rest of the team still has to get on with its work. Morale can dip, productivity can suffer, sickness absence can increase and people may even decide it’s time to move on.

How do you stop a small problem becoming a much bigger one?

We’ve probably all seen situations where one issue leads to another, until nobody can quite remember what the original problem was!

Workplace investigations can easily go the same way. An initial grievance might be followed by a counter-grievance, an allegation about something that happened months ago and a list of other complaints that have been building up along the way.

Before you know it, the investigator has a mountain of issues to work through, some of which may have little to do with the original concern.

Of course, new issues shouldn’t be ignored simply because they weren’t part of the original complaint. But they do need to be considered carefully, with a clear plan for how they will be addressed.

What about the office rumour mill?

Football fans rarely sit on the fence when it comes to their clubs. Everyone has an opinion, everyone knows what really happened and everyone seems to have a view on what the punishment should be!

The workplace is no different. As soon as an investigation starts, colleagues may begin discussing what they think happened, who they believe and what they think HR should do about it.

Confidentiality is important, but you can’t always stop people talking.

The real challenge is making sure that gossip doesn’t become confused with evidence. When interviewing witnesses, I want to understand what that particular person actually saw, heard or experienced. Being told that someone else said something happened is not the same as witnessing it first-hand.

That doesn’t mean second-hand information should automatically be dismissed as it may point to evidence that needs to be checked. But it does need to be treated with care.

How do you keep everyone confident in the process?

When an investigation seems to be going nowhere, or nobody knows what’s happening, it’s easy for people to assume that nothing is being done or that a decision has already been made.

Keeping people informed, explaining the process and being clear about timescales can make a real difference. So can making sure that decisions are based on the evidence rather than on who shouts the loudest.

What are the lessons for HR teams and line managers?

  • Get started promptly. Acknowledge concerns, assess any immediate risks and agree realistic timescales.
  • Keep things focused. Be clear about the issues being investigated and have a plan for dealing with anything new that emerges.
  • Get the evidence early. Identify relevant documents, messages and witnesses before information becomes harder to find.
  • Ask questions, not lead questions. Give people the opportunity to explain what they know in their own words.
  • Keep an open mind. Don’t decide what happened before you’ve considered the evidence from all sides.
  • Keep things moving. Review progress regularly, explain any unavoidable delays and make sure the investigation reaches a conclusion as soon as reasonably possible.

The Manchester City case might seem an unlikely source of HR inspiration, but it highlights some important lessons about handling complex investigations. The longer matters remain unresolved, the more difficult they can become, and the harder it is to ensure that everyone feels the eventual outcome is fair.

For employers, the answer is straightforward: act early, stick to the evidence and don’t let the process drift.

Forgive one final football analogy, but when it comes to workplace investigations, it’s always better to deal with the problem before it goes into extra time!

If you would like to discuss support for a forthcoming investigation, please contact Simon Martin in the Narrow Quay HR team at simon.martin@narrowquayhr.co.uk.

Bereavement: When grief comes to work – are your managers equipped to respond?

Home | Employment

Grief doesn’t end when an employee returns to work. Yet bereavement remains one of the more difficult situations for managers to navigate. With changes to statutory bereavement leave on the horizon, we consider what employers need to know and how they can support employees with compassion and confidence.

Bereavement is something most of us will experience during our working lives. Yet when an employee loses someone close to them, even experienced managers can find themselves unsure how best to respond.

How much time off should be offered? What happens when an employee returns but is clearly struggling? And how do employers balance compassion with the practical demands of running an organisation?

There are no straightforward answers. Grief affects everyone differently and rarely follows a predictable timeline. Some employees welcome the familiarity of work, while others may struggle with responsibilities they previously managed with ease.

For employers, this raises an important question: are your managers equipped to provide the right support, or are they relying on policies that only tell part of the story?

Understanding the legal position: what leave is an employee entitled to?

Bereavement leave is an area where employers need to understand the distinction between statutory entitlements and the additional support they may choose to provide.

Currently, under the Employment Rights Act 1996, employees in England, Scotland and Wales have a statutory right to reasonable unpaid time off to deal with certain emergencies involving a dependant, including making arrangements following their death. However, there is no general statutory entitlement to a fixed period of leave following every bereavement.

Separate provisions apply to eligible employees who lose a child under 18 or experience a stillbirth after 24 weeks of pregnancy. These employees may qualify for two weeks of Parental Bereavement Leave, with statutory pay subject to eligibility requirements.

Importantly, the legal position is changing.

The Employment Rights Act 2025 provides the framework for extending bereavement leave to certain close family relationships and pregnancy losses. The Government has announced plans to introduce wider entitlements from April 2027, including at least one week of unpaid leave following specified family bereavements and up to two weeks following certain pregnancy losses.

Employers should monitor these developments and review their existing arrangements. However, meeting statutory obligations is only part of the picture. How an organisation responds beyond the legal minimum can have a lasting impact on its employees.

What does compassionate management look like?

One of the biggest challenges managers face is knowing what to say when someone shares news of a bereavement.

There can be a tendency to avoid difficult conversations for fear of saying the wrong thing. However, a simple acknowledgement of the loss and a genuine offer of support will often mean more than trying to find the perfect words.

The important thing is not to make assumptions. Some employees will want to talk about their loss, while others may prefer privacy. Equally, someone who appears to be coping well may be finding things much harder than they let on.

Managers should listen, establish what support might help and keep communication open. They do not need to become counsellors, but they should know when to involve HR or signpost additional support. Perhaps most importantly, they need to recognise that grief does not end when compassionate leave does.

How can flexibility help an employee returning to work?

An employee returning to work after bereavement may appear ready to resume their usual responsibilities. But returning to work and being ready to perform at full capacity are not necessarily the same thing. Grief can affect concentration, confidence, decision-making and energy levels, sometimes unexpectedly.

Depending on the role and operational requirements, employers could consider:

  • Temporary adjustments to working hours or a phased return.
  • Additional compassionate, annual or unpaid leave.
  • Homeworking or flexibility around start and finish times.
  • Adjustments to deadlines or responsibilities.
  • Regular check-ins to review how the employee is managing.

The key is to have a conversation rather than assume what someone needs.

For some employees, maintaining their usual routine may be important. Others may benefit from temporary adjustments. Whatever is agreed, arrangements should be reviewed. Circumstances change, and an approach that works initially may need to be reconsidered.

Does your bereavement policy give managers enough guidance?

Most employers will have some form of bereavement or compassionate leave policy. But how useful is it when a manager is faced with a difficult situation?

A policy may clearly explain how much leave is available, but what happens when an employee needs more time? Or when they return to work but are struggling?

These are the situations where managers need more than a list of entitlements. A good policy should distinguish between statutory and discretionary leave, explain the support available and provide clear guidance on when managers should seek HR advice.

It should also allow for individual circumstances while ensuring decisions remain fair and consistent.
Confidentiality is another important consideration. Colleagues may need to know about changes to workloads, but that does not mean they need to know the details of someone’s bereavement.

The Acas guidance on bereavement policies is a useful starting point for employers reviewing their approach.

How can employers balance compassion with business needs?

One concern employers may have is how to support a bereaved employee without placing additional pressure on the wider team. In practice, compassion and operational requirements do not have to be competing priorities.

Managers can review workloads, identify urgent tasks and agree temporary arrangements that give everyone greater clarity.

Where an employee’s performance changes, it is particularly important not to jump to conclusions. What might appear to be disengagement could be someone struggling to manage the impact of grief. An early, supportive conversation may help identify the underlying issue before it becomes a more significant workplace concern.

Fairness does not necessarily mean treating everyone identically. Different circumstances may require different approaches, provided decisions are reasonable, consistent with policies and legally appropriate.

Are your managers equipped to respond to bereavement?

Even the best-written policy will have limited value if managers are not confident applying it.

Bereavement can involve difficult conversations, sensitive decisions and requests for flexibility that managers may not have encountered before. Practical guidance and training can help them respond appropriately without feeling they need to have all the answers.

HR teams should also consider whether bereavement is being handled consistently across the organisation. If managers regularly seek clarification or similar situations are managed very differently, it may be time to review the guidance available.

The aim is not to make managers experts in grief, but to give them the confidence to respond with sensitivity and good judgement.

What can employers do now?

With legislative changes approaching, now is a good opportunity to review how bereavement is managed within your organisation.

There are several practical steps employers can take:

  • Review your policy: Check statutory and contractual entitlements and whether sufficient flexibility is available.
  • Support your managers: Ensure they understand the policy and feel confident handling sensitive conversations.
  • Make support accessible: Signpost employee assistance programmes, counselling and other available resources.
  • Consider the return to work: Encourage conversations about workload, temporary adjustments and ongoing support.
  • Prepare for legislative changes: Monitor developments and update policies as further details become available.

These steps need not be complicated, but they can make a considerable difference to how employees experience support during a difficult time.

Making compassion part of workplace culture

Bereavement is a reminder that employees do not leave their personal circumstances at the workplace door.

Policies provide an important framework, but it is often the response of individual managers that determines whether an employee feels genuinely supported.

Employers cannot remove the difficulties associated with grief. They can, however, create an environment where employees feel comfortable asking for help and managers have the confidence to respond appropriately.

Ultimately, the question is not simply whether your bereavement policy meets the legal minimum, but whether it works in practice when an employee needs support.

There is also a legal dimension. Although the Acas Code is not legislation, employment tribunals take it into account in relevant cases, and an unreasonable failure to follow the Code can, in some circumstances, result in an award being adjusted by up to 25%.

How can Narrow Quay HR help?

Narrow Quay HR can support employers with reviewing bereavement policies, clarifying leave arrangements and developing practical guidance to help managers navigate sensitive employee situations.
We can also help organisations consider how bereavement support fits within their wider HR policies and employee wellbeing arrangements, ensuring a consistent and practical approach.

If you would like support reviewing your bereavement policy or strengthening your approach to employee wellbeing, please contact Bethan Arora in the Narrow Quay HR team at barora@narrowquayhr.co.uk.

Changes to Acas Disciplinary and Grievance Procedures: are you ready?

Home | Employment

Acas is consulting on a revised Code of Practice on disciplinary and grievance procedures, signalling a clear shift towards resolving workplace concerns earlier, more constructively and, where appropriate, informally. Formal disciplinary and grievance procedures are not going away. Serious concerns will still require a robust and fair formal process. However, the proposed Code encourages employers and employees to consider whether an issue can be resolved before it escalates into a formal dispute. The consultation closed on 23 September 2026, with Acas currently expecting the updated Code to come into effect in 2027, following the consultation and approval process.

What is changing?

1. A greater focus on early resolution

The biggest proposed change is an increased emphasis on dealing with concerns promptly and informally where appropriate. This could include a management conversation, clarifying expectations, providing support or training, making reasonable adjustments, or using mediation or a facilitated conversation. Importantly, an informal approach should not result in a formal warning or other formal disciplinary sanction.

2. Showing what has already been tried

Employers may be expected to explain what informal steps have already been taken before inviting an employee to a formal disciplinary meeting – or why an informal approach was not appropriate. Similarly, employees raising a formal grievance may be expected to explain what they have already done to try to resolve the issue and, where possible, what outcome they are seeking. This means organisations may need to become better at recording significant early interventions without turning every management conversation into a formal HR process.

3. More proportionate processes

The draft Code also reinforces that fact-finding and investigations should be objective, reasonable and proportionate. Once the facts are established, a formal disciplinary process may be appropriate, but it should not automatically be the only option. Depending on the circumstances, alternatives could include further support, training, mediation, a facilitated conversation or no further action. There is also clearer guidance that suspension should not be an automatic response. Where it is necessary, it should be justified, kept under review and as brief as possible.

What action can my organisation take now to prepare?

You do not need to wait for the new Code to take effect; now is a good time to review policies, processes and manager capability in readiness for the changes. Your focus should be on addressing concerns early where it is appropriate and safe to do so – but continue to use fair, robust formal procedures when the seriousness or nature of the issues requires them.

Review your policies – Make sure disciplinary and grievance policies allow for appropriate early and informal resolution, while being clear about when formal action is necessary.

Review your templates – Consider whether disciplinary letters should record what has already been tried to resolve an issue, or why informal action was not appropriate.

Build manager confidence – Managers will play a key role in this new approach. Ensure they have the skills to have difficult conversations, address concerns early and recognise when HR advice or formal action is required.

Keep appropriate records – ‘Informal’ should not mean ‘unrecorded.’ Consider how significant conversations and actions can be recorded proportionately.

Be clear about escalation – Some concerns will require formal action from the outset. Give managers clear guidance on when informal resolution is not appropriate.

Review suspension and mediation options – Ensure suspension is not treated as a default response and consider whether mediation or facilitated conversations could play a greater role in resolving suitable workplace disputes.

What does this mean for employers?

The direction of travel is clear: formal procedures remain important, but they should not always be the first destination. The proposed changes could help organisations resolve concerns more quickly, reduce the time and stress involved in formal processes and encourage more constructive working relationships.

There is also a legal dimension. Although the Acas Code is not legislation, employment tribunals take it into account in relevant cases, and an unreasonable failure to follow the Code can, in some circumstances, result in an award being adjusted by up to 25%.

If you need HR support with navigating these changes to Acas disciplinary and grievance procedures, please contact Helen Couchman at hcouchman@narrowquayhr.co.uk.

What do the new trade union rights mean for employers?

Home | Employment

Trade union activity may not be something you think about very often, particularly if you do not recognise a trade union. That may be about to change. The Employment Rights Act 2025 introduces a number of changes to trade union rights, with further measures due to come into force on 30 October 2026. These include a new requirement to tell workers about their right to join a trade union, new rights for qualifying independent trade unions to seek access to workplaces, changes to the recognition process and additional protection for workers taking protected industrial action.

What has already changed?

Since 18 February 2026, the notice period that a trade union must give an employer before taking industrial action has reduced from 14 days to 10 days. The period for which an industrial action ballot mandate remains effective, has also increased from six months to 12 months.

The statutory recognition process also changed on 6 April 2026. Among other things, the previous requirement for a union to demonstrate likely majority support before an application could progress was removed, as was the 40% support threshold for recognition ballots.

More recently, from 25 August 2026, electronic and workplace balloting became available for statutory trade union ballots.
So, if your organisation has not yet looked at these changes, now is a good time to do so.

Do I need to do anything if we don’t recognise a union?

Yes.

One of the most important points for non-unionised employers is that some of the new requirements will apply whether or not you recognise a trade union.

From 30 October 2026, employers will have to provide workers with a written statement confirming their right to join a trade union. The requirement will form part of the worker’s employment documentation and the legislation provides for the statement to be given at other prescribed times too.

For most employers, this is less about creating a new policy and more about making sure an existing process works, for example:

  • Where will the statement sit within your onboarding process?
  • Who is responsible for providing it?
  • Can your HR system record that it has been provided?
  • Do your employment documents need updating?
  • Do managers know what to do if an employee raises a question about trade union membership?

The government has indicated that further detailed guidance on the new requirements is expected during September 2026, so it is worth keeping this under review.

Can a trade union ask to come into my workplace?

Potentially, yes.

From 30 October 2026, qualifying independent trade unions will have new statutory rights to seek access to workplaces and communicate with workers. Access could be physical, digital or a combination of the two.

This does not mean that a union can simply turn up and walk through your workplace.

Instead, the employer and union will have the opportunity to agree how access will work. If they cannot agree, the Central Arbitration Committee (CAC) can become involved and determine whether access should be granted and, if so, on what terms.

There is also an exemption for smaller employers. The CAC cannot impose an access agreement where the employer has fewer than 21 workers across all of its workplaces.

The practical question is: what would you do if a request arrived tomorrow?

It is worth deciding now:

  • Who would receive the request;
  • Who would negotiate with the union;
  • Where meetings could take place;
  • Whether digital communication could be used; and
  • What security, confidentiality and operational issues would need to be considered.

You do not need to have every answer today. But knowing who will deal with the issue will make things much easier if a request does arrive.

Is it now easier for a union to become recognised?

Yes.

The statutory recognition process has changed, making it easier for a union to progress an application and, where a ballot takes place, secure recognition.

That does not mean that every recognition campaign will succeed. But employers should not assume that a union approach is unlikely to go anywhere because it would previously have struggled to meet the old thresholds.

This is also an area where managers need to be careful.

If an employee says they have joined a union, or a union approaches the organisation, managers should not try to deal with the situation themselves. They should involve HR.

Workers have legal protection in relation to trade union membership and activities. Managers should not threaten or penalise employees because of union membership, make promises designed to influence support for recognition, or otherwise interfere improperly with a recognition process.

A short manager briefing on this is likely to be far more useful than expecting managers to find their way through the legislation when an issue arises.

What if we already recognise a trade union?

If you already recognise a union, this is a good opportunity to review your existing arrangements.

Check your recognition agreement and make sure everyone is clear about:

  • Time off for union duties;
  • Facilities available to union representatives;
  • How representatives communicate with employees;
  • Meeting arrangements; and
  • Who deals with disagreements.

Further statutory rights relating to trade union representatives and facilities are due to come into force on 30 October 2026. The Draft Acas Code of Practice provides further guidance on time off for trade union duties and activities.

You may not need to rewrite your recognition agreement. But it is worth checking that what it says reflects what actually happens in your organisation.

What should we do if employees take industrial action?

This is another area where it is better to have a plan in place before you need it.

The rules have already changed. Employers now have to deal with a 10-day notice period for industrial action, and a successful ballot mandate can remain effective for up to 12 months.

Further protection for workers taking protected industrial action is due to come into force on 30 October 2026. This includes protection against detriment in specified circumstances.

Before there is a dispute, make sure you know:

  • Who will coordinate the employer’s response;
  • Who will communicate with the union;
  • What managers should say to employees;
  • How attendance and pay will be dealt with; and
  • When HR or legal advice should be sought.

The response will depend on the circumstances, but having an agreed approach will avoid managers making decisions on the spot.

So, what should employers do now?

You do not need a complicated new policy. A few practical steps now should put you in a much better position:

  1. Check your onboarding process. Make sure you can provide the new statement about the right to join a trade union from 30 October and that your HR systems can record this.
  2. Brief your managers. Make sure managers understand the basics of trade union rights and, importantly, know who to contact if a union issue arises.
  3. Decide who will deal with trade union matters. Identify who will handle union correspondence, workplace access requests, recognition issues and industrial action.
  4. If you already recognise a union, review your arrangements. Check your recognition agreement, facilities, time-off arrangements and communication processes.

    The key point is that you do not need to recognise a trade union today to be affected by the changes. A little preparation now should make it much easier to respond calmly and consistently if trade union activity becomes an issue.

If you need HR support with trade union arrangements, manager training, employee relations or preparing for the Employment Rights Act 2025, please contact Bethan Arora at barora@narrowquayhr.co.uk

Have we reached a tipping point? More changes to tips coming our way

Home | Employment

If you have employees who receive tips then you’ll need to be aware of some further changes to the law related to them that is in the pipeline.

What’s changing?

October 2024 saw significant legislative changes to the distribution of tips and gratuities, under the Employment (Allocation of Tips) Act 2023 (“Tipping Act”), requiring employers to pass on 100% of tips fairly. This year, as part of the Employment Rights Act 2025, the government has been consulting on a revised statutory Code of Practice on Fair and Transparent Distribution of Tips, adding more obligations on employers, in particular how tipping policies are created and reviewed.

The government initially consulted on the new requirements between February and April 2026, with a draft Code laid before Parliament on 29 June 2026. Following criticism about the lack of consultation, the government has since been consulting on the draft code and the consultation is due to close on 29 September 2026.

What do employers need to be aware of?

The new requirements will require employers to consult workers or their representatives when developing or revising tipping policies; to review policies at least every three years; and to provide workers with an anonymised summary of consultation responses.

Other changes proposed: employers should not rebrand service charges to avoid the legislation; strengthening guidance on which workers should be included in tip allocations; and discouraging fixed or guaranteed allocations. The Code also provides further guidance on avoiding equal pay disputes and makes clear that data protection should not be used unduly to withhold tipping records.

When will this happen?

The consultation closes on 29 September 2026, with the new requirements and Code expected to take effect later in 2026. Despite this uncertainty on how the new consultation requirements will be implemented in practice, there are some proactive steps employers can take:

• Audit your tipping arrangements. Understand how tips are currently allocated and what factors were considered when deciding on the distribution method. You should also audit your current record keeping to ensure tipping data is adequate and kept for the required three years.

• Ensure your tips policy is up to date and easily accessible to all workers.

• If you’re not already doing it, start discussions with your staff about how tips are distributed.

• Plan how and when to consult with your workers, ensuring you factor in all impacted groups at all places of work.

• Consider if your staff need any training on how to talk to customers about tips. The consultation reminds employers of the importance of ensuring that any automatically added tip is well communicated to customers, being clear whether it is optional or mandatory.

There is a lot to think about with these changes, which seem in large part to be an attempt to prevent employers from avoiding their obligations. Ultimately, acting now to ensure compliance with the current law will put employers in a good position to get on top of the upcoming changes.

If you need HR support on navigating these changes to tips and gratuities, please contact Simon Martin at simon.martin@narrowquayhr.co.uk

Fail to prepare, prepare to fail: Getting ready for the latest key changes on sexual harassment and third-party harassment

Home | Employment

As part of the suite of changes introduced under the Employment Rights Act (ERA) 2025, October 2026 sees two key changes in harassment legislation.

The first is the requirement on employers to comply with enhanced duties regarding sexual harassment prevention; the second change reintroduces a duty to prevent third party harassment. In this article we look at what these changes mean for your organisations, along with checklists to help you prepare.

Strengthening the law: the new enhanced prevent duty for sexual harassment

The sexual harassment preventative duty was introduced in October 2024, requiring employers to take reasonable steps to prevent sexual harassment in the workplace. From 30 October 2026 this duty is being strengthened.

Key changes

  • Employers must now take all reasonable steps to prevent sexual harassment in the workplace.
  • The addition of “all” signals a much higher threshold, requiring proactive risk management, systematic planning, and documented preventative action.
  • Regulations clarifying what counts as “reasonable steps” are expected in 2027, but employers must comply with the higher duty from 30 October 2026. Whilst we wait for the regulations, you should continue to use the EHRC 8-step guide for your approach.

Third-party harassment

In addition to the strengthening of the sexual harassment prevent duty, the ERA 2025 reintroduces employer liability for third-party harassment. This means that, from 30 October 2026, you could be held responsible if an employee is harassed by someone outside your organisation, such as a customer, contractor, or member of the public, and you have not taken all reasonable steps to prevent it.

Key changes

  • Employers are liable even if unaware of the harassment.
  • Protection extends to all nine protected characteristics under the Equality Act 2010.
  • Liability can arise from a single incident.
  • A statutory duty requires employers to proactively prevent harassment.

Checklist for employers

  • Review policies and procedures
  • Review your anti-harassment policies to ensure they are fit for purpose.
  • Ensure that reporting channels are clear and consistent across all related policies.
  • Update harassment policies to include third-party harassment.
  • Ensure grievance and whistleblowing policies address this issue.
  • Conduct risk assessments
  • Create tailored risk assessments by sector and role – avoid a one-size-fits-all approach.
  • Identify higher risk scenarios (e.g., lone working, client visits, social events, high customer volume, travel, overnight stays).
  • Identify roles or situations where employees are at higher risk of third-party harassment.
  • Tailor preventative measures based on these risks.
  • Provide training
  • Deliver regular, effective and practical training to all staff including managers, and senior leaders.
  • Train employees and managers to recognise and report third-party harassment.
  • Include guidance on handling complaints and supporting affected employees.
  • Maintain training logs to evidence compliance.
  • Strengthen reporting mechanisms
  • Ensure reporting channels are accessible, confidential, and effective.
  • Communicate whistleblowing protections to employees.
  • Review third-party contracts
  • Include anti-harassment clauses in agreements with suppliers, contractors, and clients.
  • Add provisions to terminate contracts if harassment occurs.
  • Enhance workplace safeguards
  • Implement practical measures, such as signage, panic buttons, or two-person working policies, where necessary.
  • Monitor and review
  • Regularly review policies, training, and risk assessments.
  • Use harassment complaint data to improve preventative measures.

Why preparation matters

These changes will fundamentally alter the legal landscape for employers. The strengthening of the sexual harassment prevent duty and the introduction of third-party harassment liability requires proactive measures to protect employees. Failing to prepare could lead to costly claims, reputational damage, and increased scrutiny from regulators.

By reviewing your policies, processes, and training now, you can ensure compliance, foster a safer workplace, and minimise risks. Proactive preparation will not only help you meet your legal obligations but also demonstrate your commitment to creating a fair and inclusive working environment.

For further information on this topic, please contact Lisa Reynolds in our team on 07771 316123.

When ChatGPT and TikTok join the grievance process

Home | Employment

Imagine being dismissed from your job – do you call a solicitor or do you open TikTok to find out whether you have a claim? For many people, including some of your employees, the latter option is the obvious choice.

Social media has become a popular source of legal information, with employment lawyers and workplace influencers using short videos to explain workplace rights. Alongside this, AI tools such as ChatGPT are also being used to answer legal questions and produce correspondence within seconds.

In the past, if an individual was looking for some advice on a workplace matter, they might have approached a solicitor, contacted a trade union or organisations such as ACAS or Citizens Advice, or relied on referrals from their friends and family. This undoubtedly still happens. However, social media and AI have changed the landscape. Now if you have a employment concern, you can simply plug the details into any AI tool and ask, “does this sound like it goes against my employment rights?”. Likewise you might simply come across a TikTok post describing a situation very similar to your own. TikTok is full of content creators, many with hundreds of thousands of followers, who offer advice on a variety of employment matters – what could amount to a legal claim, what evidence employees should keep and when it may be appropriate to seek further advice. Many viewers use the comment sections to share their own experiences and ask questions relating to their own situations.

AI has also improved accessibility for many people, as it can simplify complex legal terminology, summarise cases and translate information into different languages almost instantly, making it easier for people whose first language is not English. For someone who may be hesitant to contact a solicitor immediately, these tools can provide enough confidence to take that next step.

Accessibility versus accuracy

Although online content can help people understand their rights, and AI can produce content that looks credible at first glance, accuracy is not guaranteed. Indeed, these tools can create issues for both those seeking the advice and for employers responding to their employees. AI tools tend to generate lengthy responses containing unnecessary information, making it difficult for users to identify what is relevant to their situation. More concerningly, it has been shown to produce inaccurate information and even non existing cases. A 2024 Stanford-led study found that leading AI legal research tools produced fabricated or incorrect legal information in a significant proportion of responses. This can lead to challenges for employers who need to respond to AI generated communications from employees. It can impact significantly on the amount of time needed to provide a response and it can also increase cost, if specialist advice is needed to check legislation cited by individuals.

Platforms such as TikTok can be excellent educational tools with short videos often simplifying legal issues to fit within time limits. This can unintentionally give viewers the impression that every case is straightforward, when in fact employment disputes often depend on detailed evidence and consideration of the specific individual circumstances. Confidentiality is another key concern. Employees may share sensitive details about ongoing workplace disputes online, often without fully considering the potential repercussions. Additionally, comment sections can become a breeding ground for misleading or conflicting advice, frequently offered by individuals without any legal qualifications.

What’s the future?

Social media and generative AI have transformed the way people access legal information, making employment law more accessible than ever before. These tools can help employees understand their rights and identify potential issues, but they should be used as a starting point for informed discussion rather than as a source of unquestioned, copy-and-paste advice. This presents a challenge for employers. Once an employment relationship has become adversarial, questioning an employee’s reliance on AI-generated content or advice found on platforms such as TikTok may be perceived as an attempt to discourage them from raising legitimate concerns or seeking support. With that in mind, your focus should not be on discouraging the use of these tools, but on promoting a balanced and informed approach – recognising both their value and their limitations, while encouraging constructive dialogue and, where appropriate, professional advice.

We’d love to get your views on this topic and have attached a short anonymous questionnaire here. It will only take you about 5 minutes to complete. We’ll share any interesting insights in our next issue.

In the meantime, for more information on this topic, please contact Sarah Martin in our team on 07799 136091.

Changes to unfair dismissal: what you need to know to stay ahead

Home | Employment

One of the widely anticipated changes being introduced under the Employment Rights Act (ERA) 2025, are the reforms to unfair dismissal laws.

Effective from 1 January 2027, these changes mark a significant shift in the employment landscape. Reducing the qualifying period for unfair dismissal claims from two years to six months and abolishing the cap on compensation awards, will have a significant impact for employers. Organisations will need to be proactive in addressing the increased risks and financial exposure that accompany these reforms. We explore the key changes and provide a practical checklist to help you prepare effectively.

Unfair dismissal Reforms

Key changes

  • Employees gain unfair dismissal rights after six months service.
  • The cap on compensation awards (currently £118,223 or one year’s pay) will be abolished, allowing the potential for significantly higher payouts.

Checklist for employers

  • Review recruitment processes
  • Strengthen hiring practices to minimise the risk of unsuitable hires.
  • Restructure probationary periods
  • Ensure probationary periods are shorter than six months.
  • Actively monitor performance during probation and address concerns promptly.
  • Train managers
  • Provide training on fair dismissal processes and compliance with the Acas Code of Practice.
  • Equip managers to handle performance and conduct issues early.
  • Update employment contracts
  • Align notice periods with the six-month qualifying period.
  • Include payment in lieu of notice (PILON) clauses for flexibility.
  • Reassess insurance coverage
  • Review policies to ensure adequate protection against the increased financial risks of unfair dismissal claims.

There is no doubt that the January 2027 reforms to unfair dismissal laws will create new challenges for employers, particularly in managing increased claims risks and potentially higher compensation awards. By taking a proactive approach – such as ensuring recruitment processes are robust, actively managing performance during probation, restructuring probationary periods, training managers and updating employment contracts – you can better safeguard your organisation. Preparing now will ensure compliance and reduce the likelihood of costly disputes and will allow you to navigate these changes with confidence.

For further information on this topic, please contact Lisa Reynolds in our team on 07771 316123.

Tag Archive for: Employment

Getting it right, faster: equipping managers for the new employment landscape

Home | Employment

The employment law landscape is changing rapidly, and some of those changes will significantly reduce the time organisations have to assess new recruits, address concerns and make good employment decisions. By 26th November, we will be just over a month away from the new six-month qualifying period taking effect. That puts an increased focus on what happens during those first few months of employment. Are managers clear about expectations? Are they giving meaningful feedback early enough? Are they having difficult conversations when they need to, or allowing issues to drift?

We’ll focus on three practical management capabilities that become even more important when there is less time for issues to drift, and some simple shifts that can make each of them more effective.

We’ll explore what good looks like in practice, the common gaps we see, and what HR can do to strengthen these capabilities across the organisation.
You’ll leave with practical principles and techniques that can help managers set expectations earlier, give better feedback and address issues with greater confidence in the employment landscape ahead.

Our speakers for this session:

Caitlin Anniss, Director – Narrow Quay HR

Esme Phillips-Brown, L&D Specialist – VWV

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