The Supreme Court has ruled that section 146 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) which does not prevent employers from taking action short of dismissal in response to striking employees is incompatible with Article 11 of the European Convention of Human Rights (ECHR). Although the declaration of incompatibility does not affect the validity or operation of section 146, it will put pressure on the government to legislate to correct the position, and employers are likely to be mindful of the decision when considering action short of dismissal in response to industrial action. Detriments for participation in industrial action, such as removing discretionary benefits from those who take part, currently remain lawful, so long as the detriments in question aren’t so severe as to constitute a constructive dismissal.

A number of employment law changes will, or are expected to, come into force in April in the UK that employers should make note of. We have summarized them here for reference.

Following a public consultation last year, the UK government has now published a revised draft statutory Code of Practice on Dismissal and Re-engagement (also known as fire and rehire) for Parliament to approve.

From 6 April 2024, the current right of employees on maternity, adoption, and shared parental leave (“family leave”) to be offered suitable alternative employment in preference to other employees who are at risk of redundancy will be extended to cover pregnant employees, and those who have recently returned from such types of family leave.

Welcome to this edition of the “UK: Working with Unions” bulletin designed to keep you updated with key cases and legal developments affecting trade unions and employee representative bodies. This bulletin includes two decisions of the Court of Appeal: (i) on whether the Central Arbitration Committee has jurisdiction to hear complaints post Brexit where the European Works Council’s central management is situated in the UK, and (ii) on whether collective redundancies need a common rationale to constitute a transnational matter requiring consultation with the EWC. This bulletin also covers the successful judicial review challenge against regulations introduced in July 2022 to allow employment businesses to supply workers to cover the duties of those taking part in industrial action, and the Strikes (Minimum Service Levels) Act, which has recently received Royal Assent following much discussion and commentary.

In July 2022, the law changed to allow employment businesses to supply workers to cover the duties of those taking part in official industrial action. Previously, it had been a criminal offence to do so. Following a successful judicial review challenge brought by unions, that law has been quashed. It is once again a criminal offence to supply agency workers to cover the duties of workers on an official strike, or to supply agency workers to cover the duties of other workers reassigned to cover striking workers.

The EAT has confirmed that a decision to dismiss based on “tainted information” given by another individual to the decision-maker would not make the dismissal discriminatory unless the decision-maker themselves were motivated by the protected characteristic in question.

This bulletin covers the period of October 2022 to March 2023 and includes a decision of the Central Arbitration Committee (CAC) on the limitation period for bringing a Regulation 20 claim under the Transnational Information and Consultation of Employees Regulations 1999 and two interesting Employment Appeal Tribunal decisions considering: (i) whether the CAC has jurisdiction to hear complaints post Brexit where central management is situated in the UK, and (ii) whether the duty to inform and consult arises where collective redundancies are happening in multiple European Economic Area states but there is no common rationale for the redundancies.

Our latest sustainability guide, ESG Policy Guide – The Future of Sustainability Legislation for Luxury, has been developed in collaboration with Positive Luxury, the company behind the Butterfly Mark, a unique mark awarded to luxury lifestyle brands, retailers and suppliers in recognition of their commitment and verified actions to creating a positive impact on our world. It features recent and upcoming developments in ESG legislation and policies in the US, UK and the EU and explains how these impact the luxury, fashion, and cosmetics industries.

A recent EAT decision has held that an employee cannot settle statutory employment claims arising from events that have not yet happened. In doing so, it departed from existing case law that indicated it was possible to settle such claims in some circumstances.