Employment Bill update
The House of Lords committee stage of the Employment Rights Bill ("the Bill") passage through Parliament continues. Sittings are scheduled (although some dates may be provisional) up to and including 10 June 2025. Thereafter the Bill needs to proceed through the Report Stage (usually beginning 14 days after the Committee stage ends) and then a third reading. Both these stages provide the opportunity for further scrutiny of, and amendments to, the Bill. It then returns to the House of Commons for consideration of the amendments made in the Lords. The Bill will proceed to Royal Assent (to become law) if the amendments made in the Lords are all accepted. If the amendments are not accepted, the Bill will have to "ping-pong" between the two Houses of Parliament until agreement is reached, or the Bill falls (which is unlikely). It is hoped Royal Assent will be given prior to the summer recess which starts on 22 July 2025.
UK government reaffirms commitment to introduce combined discrimination
In its response to the Women and Equalities Committee ("WEC") report on the rights of older people, the UK government has recommitted to bringing into force section 14 of the Equality Act 2010. This provision provides for direct discrimination because of a combination of two relevant protected characteristics (such as being a disabled woman) to be unlawful. However, the UK government did not provide any response to the WEC report's recommendations. These recommendations included reviewing the current law, which allows the justification of direct age discrimination. Additionally, the report suggested strengthening the "reasonable steps" duty on employers to include the prevention of age discrimination.
EHRC Consultation opens following Supreme Court judgment
The Equality and Human Rights Commission ("EHRC") has opened a Code of Practice for services, public functions and associations: consultation 2025. This is in follow up to the Supreme Court judgment which ruled that sex in the Equality Act 2010 should be interpreted as "biological" sex only. The consultation is on new or changed parts of the Code of Practice, including changes to some definitions and explanations. This includes confirmation of the types of discrimination and harassment that trans people are protected from, including gender reassignment, sex (including perceived sex) and harassment. There is also revised guidance on exclusion from competitive sport, the provision of single-sex services (including justification) and exclusion from accommodation because of sex or gender reassignment. The consultation closes on 30 June 2025. No indication has been given on when the EHRC Code of Practice on Employment will be updated.
Low Pay Commission opens consultation on future minimum wage increase
The annual Low Pay Commission ("LPC") consultation has been launched. The LPC is particularly interested in the impact of this year's National Living Wage ("NLW") increase, the effect of National Minimum Wage increases on young workers and different approaches to lowering the NLW age threshold. It is also seeking views on the affordability and impact of increasing NLW to somewhere between £12.50 and £12.80 in April 2026 (although these figures are only indicative as the UK government is yet to confirm the LPC's remit for 2026 rates). The consultation closes on 30 June 2025.
HMRC updates CEST tool
Following on from the announcement in the Spring 2025 Tax Update, HMRC has updated its Check Employment Status for Tax ("CEST") tool. The tool is intended to help users check an individual's employment status. Accompanying guidance in the Employment Status Manual has also been updated. CEST has been heavily criticised in the past, particularly for its failure to address the issue of mutuality of obligation. The update includes the addition of a question on whether a contract is or will be put in place in an attempt to address mutuality of obligation. It is only if the answer to that question is "yes" that a user can continue to use the CEST tool. HMRC continues to say that, provided the CEST tool is used correctly and there are no tax planning arrangements, it will stand by the answer the tool produces.
