First published on Thursday, May 15, 2025
Last updated on Thursday, May 15, 2025
Welcome to HR Heartbeat, where we take a look at the week’s most pressing HR and employment law stories. With over 18 years’ experience in employee relations, I give my opinion on current trends impacting your business, as well as my own personal commentary on all things HR and legal.
Employer confidence hits new low
New data from the latest Labour Market Outlook report, which surveyed 2,000 employers, found that 61% planned to recruit in the coming quarter, a decrease of 6% since 2024. On top of that, 24% of employers were also planning redundancies in the next three months.
I have been vocal about the increasing strain on small business owners recently. And the consensus among experts seems to be that the impact of the Employment Rights Bill, combined with the recently increased wage and National Insurance pressures is putting many off drawing up ambitious hiring plans. And who could blame them? Much of the incoming Bill remains vague in terms of its implementation.
And I do understand. In times of budget constraints and uncertainty, it can feel necessary to cut headcount as a band aid solution to weather the storm. But the reality is that this solution doesn’t come without serious drawbacks for your business. Think medium- to long-term and look to optimise costs in other areas to avoid having to rehire and retrain when growth is back on the agenda. Trust me, you’ll thank me later.
Employment tribunal backlog soars. And it’s only getting worse
In a string of admittedly gloomy news, the backlog of open UK employment tribunal cases has risen by over a quarter in 12 months, according to Littler. That means there are currently 450,000 people across single and multiple claims waiting for their cases to be settled. 11,500 new claims were brought to tribunal in Q3 of 2024, a 30% increase in claims lodged compared to Q3 of 2023.
What’s behind the increase? Well, I think it’s a complex issue. On the one hand, you have continued economic pressures on people. Whereas some may have let things go in the past, tough times are prompting people to be more proactive in pursuing legal action if there’s a perceived wrongdoing. On the other hand, I think there’s an increased awareness of employee rights with the rise of AI and online reading.
With day-one rights and others on the way with the introduction of the Employment Rights Bill, this is only going to become more of an issue. And it means more people and more businesses are going to be left in limbo, something that isn’t fair to anyone.
My advice is simple: avoid going to tribunal in the first place. Services like BrightAdvice are available 24/7 and help mitigate risks and provide rapid answers to HR questions. If you do find yourself in a potential tribunal either way, ensure you collect witness statements as early as possible. Finally, ensure your documentation is compliant with the changes ahead of the Employment Rights Bill. After all, proactivity never hurt anyone.
Dismissed on my day off? £24k, please!
A tribunal has recently awarded a former employee £24k after being dismissed over video call on her day off. She was given no warning, no mental health support (despite the employer being aware of her mental health challenges previously), and no chance to be accompanied.
As if that wasn’t enough blunders for one sentence, they also completely breached the part-time workers regulation because her dismissal was based on her working hours. A redundancy decision should never be taken lightly and should always only follow after lots of careful planning has taken place. This case should remind business owners that the way in which news of a redundancy is communicated is equally as important as what’s then said in the meeting itself. So think on!
And that’s a wrap from me. Tune in next time for my take on the latest headlines and employment law stories, helping keep your business ahead!
