In this issue of The Loch Lens, we delve into essential insights every employer and business leader should be aware of, including:

If you want to stay ahead in HR, employment and commercial law, training and workplace wellbeing, be sure to subscribe to our LinkedIn newsletter to receive our monthly updates.

A statement graphic

In a recent Part 8 judgment – Jaevee Homes v Fincham – the Technology and Construction Court (TCC) confirmed that a legally binding contract can be formed through an exchange of informal WhatsApp messages.

The TCC found that the essential terms had been agreed, and any outstanding terms were either non-essential or could be implied. It also held that three out of four invoices issued by the defendant were valid payment applications, even though two lacked a detailed breakdown.

The key point here is that the invoices were clear in their intention and contextually fit the definition of payment applications.

This case is a valuable reminder that in construction (and beyond), informality doesn’t equal unenforceability.

A statement graphic

Of particular relevance to employers with variable-hours staff, in a recent decision – Brake Bros Ltd v Hudek [2025] EAT 53 – the Employment Appeal Tribunal (EAT) ruled that a lorry driver was not entitled to extra pay for working beyond his average shift time, because he did not meet the clear overtime thresholds in his contract.

The dispute:
The driver worked five shifts per week with an “intended average” shift length of 9.4 hours. His contract allowed for flexibility and stated that overtime would only be paid if an additional half or full shift was worked. He claimed unlawful deductions from wages under the ERA 1996 for unpaid time exceeding his average shift, but not reaching the overtime threshold.

What the Tribunal said:
Initially, the Employment Tribunal found there was an implied term that he should be paid for any hours worked beyond the average if no averaging out occurred over time.

What the EAT ruled:
The EAT overturned this. There was no basis for implying such a term. The contract’s wording was clear:

  • Basic pay covered five shifts per week of flexible length.
  • Only time exceeding a half or full extra shift triggered overtime pay.
  • There was no “business efficacy” or shared intention justifying additional implied payments.

This decision confirms that flexibility clauses in employment contracts must be respected as written, and that Tribunals should be cautious when implying terms, especially where clear mechanisms for pay and overtime are set out.

For employers, ensure your employment contracts are precise about shift expectations and overtime. This case highlights the value of robust drafting, and the risks of overreliance on implied terms.

A statement graphic

A recent Employment Tribunal has found that this remark, made to a Black British employee wearing braids, amounted to racial harassment. The Tribunal concluded the comment was rooted in harmful racial stereotypes and had no place in a professional setting.

What can we learn from this case?

Comments in the workplace, whether intended to be discriminatory or not, can be unlawful under the Equality Act 2010 if they create an intimidating, hostile, degrading, humiliating or offensive environment. This is a relatively low threshold. It is therefore vital that unacceptable or discriminatory behaviours in the workplace are dealt with firmly and robustly. As Lauren McLaughlin, Partner and Solicitor at Loch rightly pointed out in HR magazine, intention doesn’t excuse impact: “A harassing comment does not require intention… Whether flippant or described as ‘banter’, it cannot be tolerated.”

Racial harassment could amount to a criminal offence too.

How can you ensure racist remarks and harassment does not happen in your workplace?

You should ensure your organisation has up to date policies, and effective training in place on discrimination and your policies. In particular, specific training for managers and supervisors to be aware of what is discrimination, how to avoid it and what steps to take when discrimination complaints are made. These individuals should also be role-modelling inclusive and non-racist behaviours.

Employers should also create ways for staff to feel they are truly being heard, by taking grievances seriously. In instances where harassment has taken place, and the evidence supports this, employers should take ownership, for example, by acknowledging the poor treatment, implementing a framework to ensure it does not happen again, and taking steps to foster an inclusive and non-discriminatory culture with the right training and leadership.

Practical actions to take to avoid this happening include:

  • Making sure all staff know where to find relevant policies
  • Reminding staff of their responsibility not to discriminate against others
  • Training managers to deal with discrimination complaints
  • Providing regular equality, diversity and inclusion training

Taking positive steps to prevent discrimination and harassment can reduce the chance of successful Employment Tribunal (ET) claims and reputational damage, and make staff happier and more productive at work.

A statement graphic

This week’s findings from the independent review into the BBC’s workplace culture offer a timely reminder for all organisations: even in environments not deemed “toxic,” cultural health cannot be taken for granted. A positive culture does not maintain itself without proactive management.

The independent review highlighted several key areas where improvement is needed, including quicker action when concerns arise, clear communication of standards, better training, and consistent enforcement of values.

From an employment law and HR perspective, this underlines several crucial points:

  • Clarity of Expectations: Staff must understand the standards expected of them, and the consequences of falling short
  • Early Intervention: Addressing issues promptly prevents escalation and protects both individuals and organisational reputation
  • Consistent Processes: How concerns and complaints are handled must be fair, timely, and seen to be so
  • Training and Support: Staff and managers alike need regular training to recognise, prevent, and deal with inappropriate behaviour

These themes are echoed in another recent Employment Tribunal decision involving a former Government scientist at Porton Down (DSTL), which highlights the serious legal and reputational risks for employers who fail to manage workplace culture, particularly where protected beliefs are involved.

As reported by Personnel Today, Peter Wilkins successfully brought a constructive dismissal claim after enduring what the Tribunal described as a “clear hostile animus” toward his perceived gender-critical beliefs — beliefs that are protected under the Equality Act following the landmark Forstater ruling.

This case is a timely reminder of the importance of maintaining a balanced and legally compliant approach when navigating differing views in the workplace. Dismissing or ignoring concerns, particularly when linked to protected characteristics, can expose organisations to significant risk.

Whether it’s reviewing conduct policies, refreshing training, or carrying out a culture health check, now is the time to ensure your internal practices are fit for purpose,  legally, ethically, and culturally.

A statement graphic

You’ve probably seen the headlines following the Supreme Court handing down a judgment which decided that the definition of “woman”, “man” and “sex” under the Equality Act 2010 (“EA 2010”) refers to biological sex. A gender recognition certificate (a legal document that recognises an individual’s gender identity) does not change a person’s sex for the purpose of equality laws.

The decision will have practical impact on numerous day-to-day issues in the workplace, and across wider society, such as the provision of single sex facilities and services and data collection. However, despite the sweeping news headlines, there have been sensible warnings against over-interpreting the ruling.

While the decision will undoubtedly have consequences, employers are reminded that the Equality Act 2010 still protects trans people from harassment and discrimination in the workplace on the grounds of gender reassignment and perceived sex, and that employers owe a duty of care to all their employees. The decision does not change that. If you’d like to read up further, take a look at our recent article.

What does this mean for single-sex spaces?

Further to this judgment, the Equality and Human Rights Commission (EHRC) has released guidance clarifying how service providers, from hospitals and shops to schools and associations, should interpret the law when it comes to single-sex spaces. It confirms that trans women (biological males) may be lawfully excluded from women-only facilities, with parallel guidance applicable to trans men. You can read more about this here.

At the same time, the EHRC emphasises that no one should be left without access to appropriate facilities, and that decisions should be made on a case-by-case basis, considering reasonableness and context, particularly in sensitive environments like healthcare or trauma services.

A formal consultation launched in May, with a full updated Code of Practice due by the end of June.

This is a pivotal moment for employers, public bodies, schools, and service providers, and underlines the need to review policies, obtain legal advice where needed, and stay aligned with emerging legal standards.

A statement graphic

April brought with it not only the new tax year, but also a fresh round of statutory rate increases that employers need to be aware of to ensure compliance.

What’s changing and why it matters

From April 2025, several key statutory payments – including the National Minimum Wage (NMW), National Living Wage (NLW), Statutory Sick Pay (SSP), and various family-related statutory payments – went up. These changes are legally binding, so employers must ensure they are implemented correctly and promptly.

Here’s a breakdown of the key updates:

  • Family-Friendly Statutory Payments: These payments support employees during significant life events, and it’s essential to make sure your HR systems and payroll reflect the updated figures. From 6 April 2025, the following statutory payments increased to £187.18 per week (up from £184.03): Maternity, Paternity, Adoption, Parental, Parental Bereavement and, new this year, Neonatal Care Pay – you can read more about this in our April issue of The Loch Lens.
  • Statutory Sick Pay (SSP): SSP also increased. From 6 April 2025, the rate rose from £116.75 to £118.75 per week.
  • At the same time, the Lower Earnings Limit (LEL) – the minimum an employee must earn to qualify for most statutory payments – increased from £123 to £125 per week.
  • Statutory Guarantee Pay (SGP): If you’re ever in a position where you need to temporarily lay off staff, the daily rate of Statutory Guarantee Pay – payable for up to five days in any 13-week period – has risen to £39 per day from 6 April 2025.
  • National Minimum Wage (NMW) and National Living Wage (NLW): Employers must apply the increased wage rates in the first pay reference period that starts on or after the new rates come into force. So, if your staff are paid monthly on the 15th, the new rates won’t apply until 16 April 2025, the start of the next pay reference period. Until then, the old rate continues to apply. This staggered implementation often catches employers out, so double-check how this aligns with your pay cycles.

What employers need to do now

  • Communicate with employees: Let staff know about any changes that affect them, including when they’ll see the increases in their pay packets.
  • Review policies: Double-check your employee handbooks or contracts to ensure references to pay align with current statutory rates.
  • Plan your budgets: Factor these increases into financial planning and forecasting for the new tax year.
  • Update payroll systems: Ensure your payroll provider or software is ready to apply the new rates in the correct pay reference period.
A statement graphic

Employers engaging flexible or on-demand workers, such as those in the gig economy or on zero-hours contracts, are set to face tougher legal responsibilities as part of the Government’s clampdown on illegal working.

The Government has reported a 40% increase in illegal working visits by immigration enforcement teams since July 2024, alongside a 42% rise in arrests for immigration offences. As a result, the Home Office has announced its intention to extend the legal requirement to carry out right to work checks to all businesses hiring individuals on a flexible basis. This means that companies operating in sectors where flexible or on demand workers are more prevalent, like hospitality, construction, courier services and beauty, must now take the same compliance steps traditionally expected of employers with full-time staff.

What’s changing?

Currently, right to work checks are mandatory for standard employment contracts. Under the new proposals, these checks will also apply to anyone working “in the name” of a company, including gig economy workers and others on casual, zero-hours, or self-employed contracts.

This change is expected to be introduced through amendments to the Border Security, Asylum and Immigration Bill, which is currently making its way through Parliament.

The consequences of non-compliance

If you engage workers, regardless of how flexible the arrangement may be, you’ll soon be legally responsible for confirming their right to work in the UK. Failing to do so could result in serious penalties, including:

  • Fines of up to £60,000 per illegal worker
  • Business closure
  • Disqualification as a director
  • Up to five years in prison

These are significant risks, so what should employers do next?

  • Review your hiring model: Identify anyone working for you on a non-traditional or flexible basis
  • Get to grips with right to work checks: These are not optional. You’ll need robust processes in place to verify eligibility
  • Train your managers and recruitment staff: Anyone involved in hiring must understand what documents are required and how to complete checks properly
  • Take advice where needed: Mistakes can be costly, not just financially, but reputationally

If you’re unsure about how this affects your business or what practical steps you need to take to stay compliant, we’re here to help. Our legal and HR experts can guide you through the process of implementing Right to Work checks correctly or making visa applications, whatever your size or sector.

A statement graphic

A new report from the National Audit Office (NAO) has shed light on the challenges facing the UK’s Skilled Worker visa system and issued a call for more joined-up thinking across Government departments to protect migrant workers and meet sector-specific skills needs.

The report, titled Immigration: Skilled Worker Visas, highlights both the strengths and shortfalls of the current system and comes as the Government prepares to publish a new Immigration White Paper in 2025.

What’s happening?

The Skilled Worker visa route continues to play a vital role in helping UK employers fill vacancies, particularly in sectors like health and social care. However, the NAO found that:

  • The Home Office made changes to visa policy without fully understanding the impact on different sectors or regions
  • Departments across Government have failed to coordinate effectively to address local and national skills shortages
  • Exploitation in the care sector is a growing concern, with widespread evidence of poor conditions and debt bondage
  • Local authorities are often unaware when sponsor licences are revoked, leaving some migrants stranded without valid visas

More people are using this visa route than the Government anticipated when it was introduced in 2020. In the upcoming 2025 Immigration White Paper, the Government is expected to propose a reduction in migration, while also looking at ways to “flex” the Skilled Worker route to continue attracting high-skilled talent that supports economic growth.

What should employers do now?

If you hire through the Skilled Worker visa route, this is the time to:

  • Review your sponsorship practices and check your compliance
  • Understand your responsibilities if sponsor licences are revoked
  • Familiarise yourself with the updated Code of Practice for Ethical Recruitment
  • Monitor for further changes following the 2025 White Paper

Need help understanding the Skilled Worker visa system?

If you want to employ someone who resides outside the UK or does not have settled status here in the UK, then your business will require a Sponsorship Licence to support that individual’s Skilled Worker Visa application. In addition, if you are looking to bring a member of your team from a non-UK office to the UK to work rather than a visit, you will need a Sponsorship Licence to support that member of staff’s visa application too.

To ensure you follow the correct procedures, our specialist immigration solicitors can provide legal advice and make your immigration process as safe and stress free as possible.

A statement graphic

The UK Government has released updated statutory guidance to help organisations strengthen their approach to preventing modern slavery in their business operations and supply chains. This comes as part of its ongoing efforts to enhance transparency and accountability in tackling exploitation.

The new document – Transparency in Supply Chains: A Practical Guide – updates and expands upon earlier guidance under the Modern Slavery Act 2015, drawing on nearly a decade of experience and lessons learned since the Act was first introduced.

What is the Modern Slavery Statement and who must publish it?

Modern slavery can exist in any industry or country. From hospitality and logistics to manufacturing and agriculture, the risk is still real and the responsibility sits with employers to take proactive steps.

Under Section 54 of the Modern Slavery Act, certain commercial organisations are legally required to produce and publish an annual modern slavery statement. If your business is already publishing a modern slavery statement, now is a good time to review your approach in light of the new guidance. For those who are new to the process, this is a valuable starting point to get things right.

Here’s what we recommend:

  • Check here whether your organisation meets the legal threshold for publishing a statement
  • Read the updated guidance to understand your obligations
  • Review and refresh your modern slavery statement to reflect current risks and actions
  • Engage your supply chain: communication and due diligence are key
  • Seek professional support if you need help assessing risk or drafting a robust statement
A statement graphic

As an extension of your team, Loch Associates Group connect the dots between leadership, compliance, people strategy, and business growth when partnering with ambitious organisation leaders to solve complex challenges.

Our integrated approach provides commercially focused, pragmatic solutions that help you when you’re faced with a decision that will protect, grow, or secure your future. By covering every angle, we give you the confidence to move forward for long-term success.

0203 667 5400 | hello@weareloch.com