Welcome to your Quarterly Employment Law Bulletin from Roots HR.
This quarter we update you on…
Employment Rights Bill: The roadmap
Whilst we remain uncertain as to whether the Employment Rights Bill (ERB) will get Royal Assent before the summer recess, we now have a roadmap of when the government intends to consult on and implement some of the changes within the Bill.
You can find the full roadmap here; but in summary the timescale for key changes that small to medium sized social sector organisations need to be aware of are as follows:
Summer / Autumn 2025 – consultation will commence on a range of changes including giving employees protection from unfair dismissal from ‘day 1’, statutory bereavement leave, extended rights for pregnant workers, changes to the use of zero hours contracts, flexible working changes and the ban on “fire and rehire”. This last one is somewhat of a surprise to all of us at Roots HR, as we expected this to be implemented around Autumn/Wintertime!
April 2026 – Unsurprisingly, many of the changes to statutory entitlements will come into place for the start of the new tax year, including day 1 entitlement to paternity leave and (unpaid) ordinary parental leave. We will also see the Fair Work Agency being established.
October 2026 and into 2027 (and possibly beyond) – this is when we will start to see the items that are to be consulted on this year come into force including the ban on fire and rehire and obligations on employers to take “all reasonable steps” to prevent sexual harassment of their employees (again one we thought would be implemented sooner than this).
Interestingly, the roadmap also indicates that it won’t be until 2027 when day 1 unfair dismissal rights are implemented – when previously this has been set out as being implemented in Autumn 2026.
We will continue to run webinars on progress of the Bill and the roadmap, so keep your eye on our Events and Offers page for dates – the next one is likely to be scheduled for Autumn 2025.
Avoiding compulsory redundancies: creative alternatives to consider
Making compulsory redundancies is rarely a simple business decision, but it is one that many social sector organisations are having to consider in a challenging funding environment.
Organisations should always consider alternatives to redundancy and we often find ourselves talking to clients about possible solutions that preserve headcount while also delivering the savings needed.
Below are some practical alternatives to explore before moving to compulsory redundancies:
1. Voluntary redundancy schemes
Inviting employees to step forward voluntarily can soften the blow. This gives people more control over their exit and often helps retain those most committed to staying. Be clear about the terms and retain the right to decline volunteers in business-critical roles.
If you are thinking about offering voluntary redundancy as an alternative, contact us for advice and support.
2. Changes to Terms and Conditions
Consider amending hours, pay, or duties by agreement to reduce costs. Where agreement isn’t possible and the business case is compelling, the “fire and rehire” route may be a last resort- but tread carefully. There is a Statutory Code of Practice in this area now. Non-compliance could lead to tribunal claims and compensation uplifts. The Employment Rights Bill proposes to outlaw the practice, save where the business’s imminent survival is at stake, but you will see above that it is likely to be October 2026 before this is implemented.
3. Unpaid Sabbaticals or Career Breaks
In areas of low demand, offering short-term unpaid leave can provide breathing space without permanent job loss. Frame it as a development opportunity or reset.
4. Job sharing or reduced hours
Offering part-time working or job shares can achieve cost savings while retaining talent and flexibility. These options often suit those seeking better work-life balance.
5. Freeze recruitment and reduce use of contractors or agency workers
Sometimes cost savings can be achieved without affecting current staff—pause new hiring and consider trimming contractor or agency worker use first.
By thinking creatively and engaging early with employees, you may be able to find alternatives. As always you can seek advice and support with restructures from Roots HR.
Redundancy: Don’t cut corners on alternative employment
Also on redundancies, a genuine redundancy and fair selection process aren’t enough on their own to carry out a fair redundancy dismissal. Employers also have a legal duty to explore alternative roles for affected employees – and taking a half-hearted approach, risks making the whole process unfair.
That’s the clear message from the recent case of Hendy Group v Kennedy. Mr Kennedy was a training manager at a car dealership group, with over 10 years of previous experience in car sales. When his training role was at risk, he applied for several internal vacancies – mainly in sales – but was unsuccessful and then dismissed for redundancy.
The tribunal accepted that the redundancy was genuine. But it still found the dismissal unfair.
Why? Because the employer didn’t make a proper effort to help Mr Kennedy find another role.
Key issues included:
- He had to find and apply for vacancies like an external candidate
- HR gave no help in identifying suitable roles
- He was told further sales role applications would be rejected as his motive in applying for them was questioned
- Managers weren’t told he was at risk of redundancy
- Some emails were sent to an address he couldn’t access
- No real attempt was made to match him to vacancies
The tribunal found that if the employer had acted fairly, Mr Kennedy likely would have found another role. He was awarded full compensation, with no Polkey deduction.
Takeaway: Supporting employees at risk of redundancy isn’t just good practice – it’s a legal requirement. That means more than just pointing to a vacancy list. You need to:
- Communicate clearly and supportively
- Help identify and explore suitable roles
- Ensure decision-makers know who’s at risk
- Make sure practical barriers (like email access) don’t get in the way
In redundancy, how you handle the detail can make or break a fair dismissal. For support with restructures or redundancies – please contact us. You may also want to request our FREE Factsheet on the Minimum Redundancy Process.
Fixed-Term Contracts: Key Issues for Employers
Fixed-term contracts are widely used within the social sector, not just to cover maternity leave, or for seasonal demand, but quite often the fixed-term nature of the role is linked to funding.
But they come with risks that employers should manage carefully.
Legal rights and protections
Employees on fixed-term contracts are protected under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002. From day one, they have the right not to be treated less favourably than comparable permanent staff. That includes equal access to pay, conditions, training, and benefits – pro-rated if needed. You can only justify differences if you have good business reasons and the overall package is of equal value.
After four years on successive fixed-term contracts, an employee may automatically become permanent – unless there’s a strong business reason not to. You may wish to contact us, if you have any queries about longer-term fixed-term contracts within your own organisation.
Tricky areas to watch
- Funding uncertainty: If you rely on external funding, you may be able to justify continued use of fixed-term contracts – but be prepared to defend this at tribunal if necessary.
- Ending the contract: Simply letting a fixed-term contract expire still counts as a dismissal. You’ll need a fair reason if the employee has 2+ years’ service – usually redundancy or “some other substantial reason” (e.g. the return of the employee they were covering). This often comes as a surprise to social sector employers. If you are considering letting fixed-term contracts expire within your organisation, we recommend you seek professional advice and support from Roots HR before letting this happen to understand and mitigate any risks.
- Early termination: Unless the contract allows for early termination with notice, ending it early may amount to wrongful dismissal. You should include clear early termination clauses within the contract.
- Permanent roles: If you make the fixed-term role permanent but don’t offer it to the postholder, be cautious. Fixed-term employees should, at the very least, be offered the opportunity to apply for the vacancy. If you don’t want to offer the role to the temp, then you should try and make it as different as possible from the temporary position.
- Pregnancy or maternity: Not renewing a contract during pregnancy or maternity leave isn’t unlawful in itself, but a fair process is essential. Offer priority access to suitable vacancies and provide clear, written reasons for dismissal.
- Pro-rata benefits: You don’t have to offer every benefit for a short-term hire – but you’ll need to explain why and offer something equivalent if challenged.
Fixed-term contracts can be practical, but they’re not risk-free. A proactive, fair and transparent approach will help you stay compliant – and avoid costly claims.
Contact us if you have any queries.
Volunteers in the Workplace
Volunteers can be a valuable asset to many social sector organisations – bringing flexibility, community engagement and cost-effective support. But if the relationship isn’t handled with care, it can lead to unexpected legal liabilities. Here are some key points leaders and managers need to keep in mind when engaging volunteers:
1. Risk of Employment Status
One of the most common legal pitfalls is unintentionally creating employment rights. If a volunteer is treated too much like a regular employee – for example, being given fixed hours, performance targets, or anything beyond genuine out-of-pocket expenses – a tribunal may decide they are a worker or even an employee.
In Groom v Maritime and Coastguard Agency, the Employment Appeal Tribunal ruled that a volunteer coastguard became a ‘worker’ during periods where he could claim payments that went beyond expenses. The fact that he had to apply for this payment did not affect the outcome – the arrangement had the key ingredients of a contract. This case is a clear reminder that even small, well-intentioned payments can tip the balance and create employment rights.
Other practices that could suggest employment status include mandatory training, requiring attendance at events, or using formal disciplinary procedures – all of which may imply mutual obligations typical of employment.
To minimise risk:
- Ensure volunteer roles are clearly optional and flexible.
- Reimburse only actual expenses – avoid any form of additional payment.
- Use language that sets out expectations, not requirements.
- Keep documentation informal and avoid corporate HR processes.
Remember, tribunals will look at the reality of the relationship, not just what your paperwork says.
2. Legal rules still apply
Even if someone is a genuine volunteer, certain legal duties remain:
- DBS checks may still be required for volunteers working with vulnerable groups. These checks are free but only apply if the individual meets strict criteria (e.g. no payment, not in training for a paid job).
- Health and safety laws also apply. You must provide a safe environment, appropriate training, and necessary equipment. The Health and Safety Executive’s guidance emphasises that volunteers, while not employees, must still be protected from foreseeable risks.
Make sure volunteer roles are included in risk assessments, that your insurance covers volunteers, and that you maintain up-to-date records of their involvement.
3. Volunteer Agreements
While not a legal requirement, a well-constructed volunteer agreement can be a useful tool. However, poor drafting can create legal problems – especially if it starts to resemble a contract of employment.
When drafting an agreement:
- Clearly outline the tasks and support available.
- Use soft, non-binding language (‘we hope’, ‘suggested’) rather than obligations.
- Avoid legal terms like ‘contract’ or ‘pay’ – stick to ‘reimbursement’ for expenses.
- Make clear that the arrangement can be ended at any time by either party.
- Include references to key policies, like health and safety or confidentiality.
Handled thoughtfully, a volunteer agreement can support a productive relationship while keeping legal risk in check.
Roots HR can offer advice, guidance and documentation to help you lawfully engage and retain volunteers. You may be able to use our 1-hour of Free HR Consultancy to discuss any queries regarding volunteers.
And finally…
As we have been experiencing some heatwaves already in 2025, it’s a good time to remind you that employers must take steps to protect staff from the risks of working in extreme heat. Heatwaves can affect productivity, comfort, and health.
All employers are under a general duty under Health and Safety at Work Act 1974 to provide a safe working environment. This incorporates working at safe temperatures.
There is no legal maximum temperature set out in UK law. However, the Workplace (Health, Safety and Welfare) Regulations 1992 say that workplace temperatures must be “reasonable”.
If you don’t already have one, a warm weather risk assessment should be carried out and maintained. This will help you to identify any particular risk areas and steps that can be taken to minimise those risks. These are often common-sense: fans, ventilation, relaxed dress codes, shaded areas for outdoor workers and access to water.
Employers should be mindful that some employees face higher risks associated with heat. For example:
- Outdoor workers (e.g. construction, delivery): need shade, sun protection, hydration.
- Pregnant employees: may be more vulnerable to overheating.
- Disabled employees: certain conditions may make temperature regulation harder. Reasonable adjustments may be needed under the Equality Act 2010.
Employers have a clear duty to take heat seriously. It is important to be pro-active and have a warm weather plan in place which is clearly communicated to staff before a heatwave hits. Small adjustments can often make a big difference.
