Tue 08 Jul 2025

Employment Law Round Up - July 2025

Employment Rights Bill Update

Another set of amendments to the Employment Rights Bill was published on 7 July, some of which are significant.  The changes proposed by the UK Government (and therefore likely to pass) are:-

  • The addition of a whole new section banning the use of non-disclosure agreements relating to discrimination and harassment
  • An extension of the new right to bereavement leave to include pregnancy loss before 24 weeks of pregnancy
  • A softening of the ban on fire and rehire which will now only preclude dismissals to make changes to a specified list of contractual terms
  • Separately from the above, the fire and rehire ban is to be extended to cover the replacement of employees with self-employed contractors, workers who are not employees, agency workers or any other individual that is not employed, if the replacement person(s) is/are going to be doing substantially the same work
  • Further amendments to the already complex guaranteed hours provisions

The detail of these amendments will be covered in full in our August enews.

Review of parental leave and pay system announced

The promised review of the parental leave and pay system was announced by the UK Government on 1 July.  A full overview of the review will be published in our August enews.  The review announcement states that the review will consider how the parental leave and pay system could be improved to better support working families and meet the needs of the modern economy.  It will cover all current and upcoming parental leave and pay entitlements.  To inform the work of the review the Parental Leave and Pay Review - Call for Evidence Survey will be open until 25 August 2025.

CIPD Working Lives report published

The CIPD Working Lives Scotland 2025 report is an annual benchmark of job quality in Scotland. Now in its sixth year, data is based on a survey of over 1,000 workers from different sectors looking at key aspects of their work. This year's findings include:-

  • Although only 12% of Scottish employees had some tasks automated by AI, 72% of those felt that AI automation improved their performance at work
  • High workloads, long commuting times and carrying responsibilities negatively impact work-life balance
  • Rates of flexible working remain higher than pre-pandemic, but there is still a significant unmet demand for some flexible working options, primarily a four-day week, compressed hours and flexitime
  • 26% of Scottish employees say work has a negative impact on their mental health

More information and a detailed analysis of these findings are set out in the full Working Lives Scotland 2025 report.

WEC report on paternity and shared parental leave

The influential Women and Equalities Committee (WEC) have published their report on paternity and shared parental leave. The report identifies various issues with the current parental leave system that WEC considers the UK Government should address in its promised review. These include low rates of statutory pay and gender disparity. Recommendations include:-

  • extending paid paternity leave to 6 weeks
  • increasing statutory pay rates in a variety of ways
  • addressing lack of provision for self-employed parents
  • addressing disparities for single parent families and parents of multiple births

The UK Government committed to undertaking a full review of the statutory parental leave system within a year of being elected albeit that timescale has recently expired. The full report is available at Equality at work: Paternity and shared parental leave.

EHRC interim update "is not guidance"

The EHRC has confirmed that the interim update on the practical implications of the UK Supreme Court judgment, published in April, is not guidance. This was confirmed when the chair and chief executive of the EHRC gave evidence to the Women and Equalities Committee. It was stated that more comprehensive guidance will follow in the finalised services Code, which is not expected to be published until the Autumn. It is currently unclear when the separate EHRC Code of Practice on Employment will be reviewed.

EHRC Code of Practice for services, public functions and associations

The judicial review application seeking to extend the consultation period on the Equality and Human Rights Commission's (EHRC) services Code of Practice has been rejected by the High Court. The consultation opened following the Supreme Court's judgment that references to men, women and sex in the Equality Act 2010 covers biological sex and do not include transgender people with or without a gender recognition certificate. Liberty, who pursued the judicial review have said that they will appeal the judgment. Separately 20 charities wrote a joint letter to the EHRC calling for the consultation period to be doubled. The EHRC responded stating that the 6 week period put in place balanced the need for comprehensive stakeholder input and the "urgent need for clarity". The consultation closed on 30 June.

Make an Enquiry

From our offices we serve the whole of Scotland, as well as clients around the world with interests in Scotland. Please complete the form below, and a member of our team will be in touch shortly.

Morton Fraser MacRoberts LLP will use the information you provide to contact you about your inquiry. The information is confidential. For more information on our privacy practices please see our Privacy Notice