Recent case law developments and upcoming legislative reforms continue to reshape the UK employment law landscape. Companies in the employment liability, disability discrimination, and redundancy consultation sectors are having the liability on the employers enhanced by courts and tribunals, but the government reforms, which are planned between 2025 and 2027, are set to give greater protection to employees and impose more obligations on the employers.

The update will outline the most important recent case law developments and then the key legislative changes that the employers need to start planning to implement now.

Recent Case Law Developments

Employer Liability for Sexual Harassment Extends Beyond the Workplace

AB v Grafters Group Ltd (t/a CSI Catering Services International) [2025]

The Employment Appeal Tribunal has stated that the scope of employer liability regarding sexual harassment is not limited to the incidences that happen at the workplace or during the working hours.

The complainant in this case was a sexually harassed agency worker who was being driven home after having cancelled a shift when a colleague sexually harassed her. Along the way, the colleague took her to a quiet place where inappropriate touching was done against her and the sexually explicit video was shown to her. The claimant was reporting the incident to her employer. Nevertheless, the employer did not exercise reasonable efforts to address the complaint or support them.

The Employment Tribunal did find that there was bad treatment, but it also found that the employer was not responsible since the act was committed when he was not in the office and during off-hours. The Employment Appeal Tribunal did not agree with this fact, stressing the fact that the adequate test regarding the employment relationship and the connection between the conduct and the latter is whether it is sufficient. The case was, hence, returned to the tribunal to be reconsidered.

Practical implications for employers

• The liability to harassment can also be broader to include the physical workplace, where there is a direct relationship with employment.
• The work-related travelling policies, transport, and work-related social situations should be discussed.
• The employers need to make sure that the complaints are addressed and a timely investigation is conducted.

Employers are supposed to make sure that the policies and reporting systems used in the place of work are appropriate to handle the risk of harassment both within and without the workplace’s premises. In case you need assistance with the review of your policies or a complaint at your workplace, the Employment Law members of Kalra Legal Group can offer you some practical assistance.

Duty to Consider Reasonable Adjustments Reinforced

The Empire Tribunal has strengthened the requirement upon employers to seriously take into account reasonable modifications of disabled employees.

The claimant had spent almost 40 years in the employment of the airline before he suffered the anxiety, depression, and work stress. There was medical backing to the gradual re-entry to work via ground-based work nearer to home.

The employer, however, insisted that the claimant had to be fit to fly and provided limited temporary options. The Tribunal also determined that the employer had not given serious thought to reasonable changes and was heading in the direction of dismissing him without first examining other available positions.

The Tribunal also disapproved of the fact that the employer was using its standard return-to-work policies and failing to investigate the medical background of the employee.

Practical implications for employers

• ​​Employers have to adequately interact with medical testimony and occupational health counseling.
• Some of the reasonable adjustments that can be made include alternative roles, changed responsibilities, or location.
• Firings without a reasonable accommodation to the accommodations can be construed as disability discrimination.

The legal aspects of disability matters at the place of work are quite sensitive to handle. In the case when your organisation may have long-term sickness absence or possible disability adaptations, Kalra Legal Group can consult you on reasonable actions to minimize the legal liability and to help the employees.

Collective Redundancy Consultation Clarified

Micro Focus Ltd v Mildenhall

The Employment Appeal Tribunal has elucidated the requirement of collective redundancy consultation. Collective consultation under UK law is activated whereby the employer intends to lay off 20 or more workers in one facility within a 90-day period.

The Tribunal affirmed the following:

• The threshold is to be determined in the same employing organization, as opposed to a broader corporate outfit.
• It is under the obligation of a prospective evaluation of the offer of the employer.
• Earlier redundancy proposals can be ignored where no intention was to hit the mark when they were made.

The consequences of not following the collective consultation rules may be the award of protective remedies of up to 90 days’ pay per employee impacted.

The redundancy processes have serious legal requirements, especially when they are many in dismissing an employee. When you are thinking of restructuring or reducing the number of people in your organisation, then it is better to get legal advice at the earliest stage so that a consultation requirement is addressed properly.

Key Legislative Changes (2025–2027)

The UK government has announced a series of reforms expected to take effect between December 2025 and January 2027. These changes will significantly alter employment rights and employer responsibilities.

1. Unfair Dismissal Reform (Expected January 2027)

One of the most significant reforms will reduce the qualifying period for unfair dismissal claims from two years to six months of service.

The government too has shown that there could be no statutory limit to the amount of unfair dismissal compensation.

Risks for employers

• The employees will be able to bring claims much earlier.
• Exposure to the finances might be significantly high in case the compensation limits are eliminated.
• There can be an increased scrutiny of probationary dismissals.

Recommended actions

• Revamp probation and performance management processes.
• Train managers should be trained to address early performance issues.
• Keep proper records of dismissal.

2. Tribunal Procedure Changes

Most claims to the employment tribunal have a limit period that will be anticipated to go up to six months instead of the conventional 3 months.

Also, the ACAS early conciliation period can be extended to 12 weeks, and the dispute resolution process can be prolonged.

Employer considerations

• Conflicts can be drawn months after incidents have taken place.
• The investigation and grievance documentation should be kept longer by the employers.

3. Statutory Sick Pay Reform

Reform suggestions entail that Statutory Sick Pay will be paid on the first day of sickness, not after three days, as it is currently.

The reduced earnings level can also be eliminated, and this will make a larger number of employees eligible to receive SSP.

Employer considerations

• An increase in costs of short-term absence.
• There might need to be tougher absence tracking systems.

4. Day-One Family Leave Rights

From April 2026, certain family leave rights, including paternity leave and ordinary parental leave, are expected to become day-one rights.

Employer considerations

• HR systems and onboarding procedures will need updating.
• Managers should understand employee entitlements from the start of employment.

5. Fair Work Agency

A new enforcement body, the Fair Work Agency, is expected to launch in April 2026.

The agency will enforce rights relating to:

• Statutory Sick Pay
• Holiday pay
• Minimum wage
• Worker protections

The agency will also have inspection powers and may impose penalties of up to 200% of underpayments.

6. Zero-Hours Contract Reform

Employees with zero-hours or low-hours contracts will have new rights to demand guaranteed working hours where regular working patterns are emerging.

Employers will also need to:

• Provide reasonable notice of shifts
• Compensate workers for cancelled or shortened shifts

Looking Ahead

The reforms, which are yet to arrive, are one of the biggest changes in the UK employment laws in decades.

Employers ought to start reviving HR policies, training initiatives, and internal protocols at present so that they are ready to face the widening range of employee safeguards and additional legal scrutiny.

The recent case law indicates that tribunals are adopting a practical and people-oriented approach in evaluating employer duties, especially in matters that relate to preventing harassment, disability adjustments, and redundancy consultation.

How Kalra Legal Group Can Help

In case you are interested in some comments on how these developments can impact your organisation or employment situation, you can contact the Employment Law team of Kalra Legal Group.

We continue to invest in making the changing employment law field transparent and practical to the employers. Our team is also available to help you understand the policies of the workplace, handle conflicts, or plan the future legislative changes.

Please feel free to get in touch for tailored advice or further guidance.