Tag: language at work

Autumn Budget 2025:  impact on employers

The Chancellor’s Autumn Budget has now been delivered, following an unusual start where key details were inadvertently published early by the Office for Budget Responsibility.

While much of the media coverage has centred on household finances, the consequences for employers are far-reaching. Businesses already contending with rising costs and economic uncertainty must now prepare for a new wave of challenges that will influence recruitment, workforce planning, and compliance throughout 2026.

Key Budget Measures Affecting Employers

• National Minimum Wage Increase: From April 2026, the rate for workers aged 21+ will rise to £12.71 per hour, with similar uplifts for younger workers and apprentices. This will significantly impact payroll budgets, particularly in labour-intensive sectors.
• National Insurance and Salary Sacrifice Changes: Employer NIC remains at 15%, but pension salary sacrifice will be capped at £2,000 from April 2029, reducing tax efficiency for benefits packages.

• Frozen Tax Thresholds: Income tax and NIC thresholds will remain frozen until 2031, increasing fiscal drag and putting pressure on employers to raise wages to maintain net pay.

Why Employers Are Concerned

The combination of higher wage floors, unchanged NIC rates, and looming employment law reforms creates a perfect storm for businesses already operating on tight margins. Employers are pausing hiring decisions amid fears of further tax hikes and increased employment costs.

While retail and hospitality roles remain buoyant in the run-up to Christmas, sectors such as healthcare, consultancy, and marketing are seeing sharp declines in advertised positions. Many are exploring restructuring options, AI-driven efficiencies, and negotiated settlement agreements to manage costs and mitigate risk.

What Should Employers Do Now?

1. Review Workforce Strategy: Model the impact of wage increases and NIC on your cost base.
2. Prepare for legislative changes by updating HR policies and contracts; review benefits packages (especially pension salary sacrifice).
3. Communicate Early: Manage employee expectations around pay and benefits.
4. Seek Advice: Consider pragmatic solutions such as settlement agreements where restructuring is unavoidable.

At Lawson West Solicitors, our Employment Law team is ready to help employers navigate these changes and protect their business interests. If you are considering restructuring, redundancies, or need guidance on compliance, contact us today.

Contact Us now.

Pause For Thought

All eyes will be on Chancellor Rachel Reeves this week as we await confirmation of her plans to balance the books in this week’s Autumn Budget Statement.

There is a lot of economic uncertainly. So far, the economic growth promised by the Labour Government has proved elusive.  The Chancellor is expected to implement a raft of measures and further tax hikes with the hope of bringing a well needed boost to the economy. If applied, further business taxation will hit struggling businesses even harder and, as many hang on to survive into 2026, they may consider reducing their workforce numbers even further as one option to secure future stability.

In addition to this groundswell of wariness, the Employment Rights Bill, which is still doing its ping-pong through the courts and is still awaiting Royal Accent on final amendments, is also making businesses cautious.

Recruitment Slow-Down

Against this perfect storm backdrop, it’s perhaps therefore not surprising that some recruitment agencies are reporting a pause in hiring during October and November with Adzuna reporting that the number of job vacancies have dropped below 800,000 in October for the first time since March 2021. The exception of this being roles in hospitality and retail which as ever remain buoyant during the run-up to Christmas. They report that vacancies fell in every part of the UK in October with the steepest monthly, and annual declines seen in Wales (-9.13% MoM; -15.34% YoY) and Scotland (-5.66% MoM; -10.72% YoY).

The October 2025 survey report by the Recruitment & Employment Confederation and KPMG, published on 14th November, highlighted that permanent vacancies continue to fall in the UK at a steeper rate than temporary roles. However, the downturn in permanent placements had eased for the fourth straight month, even so, recruiters frequently commented that employers were hesitant to commit to new hires amid a weaker economic climate and uncertainty over the upcoming government Budget.

The slump in healthcare roles is also reported to have eased slightly.  However, as we recently reported that is likely to be short lived where plans for a restructure of some NHS services are underway and planned for implementation early next year.

December is typically a time when business take stock.  They turn their mind to resource strategies and restructuring of services.  Businesses are also looking at alternative ways to deliver services, with many exploring A.I. initiatives in the hope this will deliver more economical results and efficiencies.

Settlement Agreements Remain Popular

Equally, employers and employees often seek more pragmatic resolutions to employment disputes, favouring a negotiated settlement over protracted and costly internal dispute resolution methods or litigation.

We await the Chancellor’s Autumn Budget Statement and, of course, will share our thoughts as to the impact this may have on business and in particular employment with you soon.

Lawson West Solicitors’ Employment Law Team

We have a team of experienced employment lawyers ready to help employers and individuals who find themselves facing redundancies through restructuring. We’re a Top Tier firm recognised in The Legal 500 for Employment expertise in the East Midlands, confident and experienced, and here to help.

Contact Us

Home Insurance Legal Cover: Funding Employment Tribunal Claims

When employees find themselves facing workplace disputes, whether dismissal or discrimination, the prospects of bringing an Employment Tribunal claim can feel daunting. Aside from the emotional strain, many people worry about potential legal costs. What many do not realise however, is that they may have access to funding through their home insurance policy.

Legal expense insurance (LEI) is a lesser known but valuable add on within home insurance policies. Raising awareness for this cover can make bringing a claim in the tribunals more financially accessible.

What is Legal Expense Insurance?

LEI is an optional feature that attaches to many home insurance policies, typically purchased as an add-on. LEI is designed to cover legal fees and representation costs for certain disputes. Employment disputes that may be covered include:

• Unfair dismissal
• Discrimination claims
• Redundancy disputes
• Contractual breaches

When will insurers agree to fund a claim?

Insurers apply a specific criteria before agreeing to fund a claim:

• Reasonable prospects of success – insurers usually require a 51% chance of success.
• The issue must have arisen prior to the start of the policy – LEI cannot be used for disputes that began before the policy was in place.
• Compliance with deadlines – the claim must be brought in time and deadlines such as ACAS Early Conciliation must be observed.

Many insurers rely on a panel of solicitors to handle LEI claims, however, clients have the option to nominate a solicitor of their choosing, such as specialist employment solicitors like us. This gives clients greater control over who represents them and allows them to select a firm with the expertise their case requires. This also allows for a more personalised and tailored service.

We also assist clients with the LEI application process from the very beginning. We recognise that applying for LEI can feel overwhelming and complex, insurers often require detailed information about the dispute, prospects of success, and key documents before funding is agreed. We are experienced in presenting cases clearly and efficiently, ensuring the insurer has everything they need and communicating with them directly on the clients’ behalf. This helps to avoid unnecessary delays and ensures funding is secured as quickly as possible.

Employment disputes are subject to strict and unforgiving time limits, securing advice and support early on is essential. Acting quickly can make the difference between a strong claim being accepted or falling outside statutory deadlines. Early guidance also ensures evidence is preserved and mistakes are avoided during crucial stages of a dispute. Seeking advice and support as early as possible is crucial to avoid missing critical time limits as the application process can be time consuming.

It is also important to note that LEI generally covers litigation costs only, meaning it does not usually cover the pre-litigation phase, including negotiations, early advice, or representation during ACAS Early Conciliation.

We provide comprehensive support throughout the case and offer a range of funding options to ensure clients receive the help they need, from initial negotiations to tribunal representation. If you are facing an employment dispute and want to understand whether your home insurance policy includes legal expense cover, out team can help you review your policy, liaise with your insurer, and guide you on the best next steps.

How Lawson West can help.  Contact Us

Managing long term sickness absence can be one of the most sensitive challenges for employers, especially when the employee’s condition qualifies as a disability under the Equality Act 2010. Getting it wrong can lead not only to Tribunal claims but also to damaged trust and morale within the workplace.

When does a health condition count as a disability?

Under the Equality Act 2010, someone is considered disabled if they have a physical or mental impairment that has a substantial and long-term adverse effect on their ability to carry out normal day-to-day activities.

• Long term generally means lasting 12 months or more, or likely to do so.
• Common examples include conditions such as depression, anxiety, cancer, Autism, ADHD, etc.

Even if an employee is able to work intermittently or with support, they may still meet the legal definition of disability.

Managing long term sick leave

When an employee has been off for several weeks or months, employers should take a supportive and structured approach, including:

• Regular, sensitive communication – keep in touch with the employee, not to pressure them, but to stay informed and show genuine concern.
• Medical evidence – request fit notes or, where appropriate, refer them to Occupational Health for an assessment of their condition.
• Reasonable adjustments – the law requires employers to consider adjustments that could help the employee return to work. Examples include:

• Reduced hours or phased return
• Adjusted duties
• Providing specialist equipment
• Allowing more flexible working patterns

Failing to consider or implement reasonable adjustments could amount to disability discrimination.

Capability and fair dismissal

If, after medical advice and consultation, it appears the employee cannot return to work even with adjustments, employers may eventually consider dismissal on grounds of capability.

However, before doing so, they must:

• Consult the employee fully and explore all alternatives
• Consider redeployment to another suitable role
• Allow reasonable time for recovery

A dismissal will only be fair if the employer can show they acted reasonably, compassionately, and in line with medical evidence.

Balancing business needs and legal duties

Employers often face tension between supporting a long term absent employee and managing operational demands. The key is good documentation and communication, keeping clear records of conversations, medical reports, and decisions made.

Handled correctly, employers can balance compassion with business practicality, whilst avoiding costly tribunal claims.

Key takeaways:

• Disability protection applies even if the condition is not visually apparent.
• Reasonable adjustments must always be considered.
• Capability dismissals should be a last resort, following proper process.
• Fairness and empathy go hand in hand with legal compliance.

How our firm can help…

At Lawson West, your employment team advises employers and employees on managing long term sickness absence, disability discrimination, and reasonable adjustments. Whether you need guidance on returning to work, updating your sickness absence policy, or navigating potential capability process, we are here to help. Contact Us