September 2025 Employment Law and HR Update

(Excluding the Employment Rights Bill which we reported on separately)

As ever, September brings a mix of important cases and lessons for HR and employers. Here are the key developments to know.

---

Teacher Wins Over £370,000 for Trade Union Related Dismissal

A tribunal found that the dismissal of Ms Wood-Hope, a primary school teacher and union representative, was automatically unfair. Performance issues were used to disguise the real reason: her trade union role. The tribunal also upheld her disability discrimination claim.

She was awarded three and a half years’ loss of earnings, £25,000 for injury to feelings, £10,000 for personal injury, a 25% Acas uplift, and £10,000 aggravated damages.

Lessons

• Automatically unfair dismissals (e.g. union activity, whistleblowing, pregnancy) carry uncapped compensation.
• Bias in decision-making contaminates the whole process.
• Ensure performance and grievance issues are handled impartially.

---

Constructive Criticism vs Harassment

In Shevlin v John Wiley & Sons Ltd, the tribunal confirmed that critical feedback is not harassment. Mr Shevlin, who had ADHD, complained after comments about typos and “messy” work. The tribunal held these were legitimate performance points.

Lessons

• Managers can challenge poor performance.
• Use sensitive, constructive language and consider adjustments for disabled staff.

---

Termination Payments: Tax Pitfalls

Settlement payments can be complex. While the first £30,000 is usually tax free:

• Notice pay is always taxable.
• Payments for restrictive covenants/confidentiality and other ongoing contractual obligations are taxable.
• Employee national insurance contributions are not generally payable on any settlement sum reached, either under or over the £30,000 threshold. However, awards over £30,000 are usually subject to employer national insurance contributions.
• Payment made specifically for a recognised disability or injury which, at the date the employee’s employment terminates, prevents the employee from carrying out their job, is exempt from income tax.
• Payments specifically made in settlement of discrimination allegations can be made tax free. The amount allocated to such a settlement needs to be clearly evidenced.
• Writing off loans is treated as taxable earnings.

Lessons

• Employers should structure settlements carefully to avoid unexpected liabilities.
• Please note that Impact Lawyers does not provide tax advice and specialist advice should be sought as required.

---

£1.2 Million Discrimination Award

In Wainwright v Cennox, an employee with cancer resigned after her role was permanently filled despite assurances. She succeeded in claims for disability discrimination, constructive dismissal and discriminatory unfair dismissal.

Lessons

• Cancer is automatically classed as a disability.
• Consult openly about roles for absent staff.
• Making permanent changes for convenience rarely justifies discrimination.

---

“Last Straw” and Constructive Dismissal

In Marshall v McPherson, the EAT held that the “last straw” need not be serious on its own. Tribunals must look at the cumulative effect of conduct.

Lessons

• Monitor ongoing concerns that could add up to a breach.
• Train managers in early resolution to prevent escalation.

---

Race Related Harassment: Use of Polish in Meetings

In Kellington-Crawford v Newlands Care Angus Ltd, a claimant succeeded after senior managers spoke Polish during a disciplinary meeting, leaving her excluded and intimidated.

Lessons

• Do not ban foreign languages at work, but ensure a common language is used in formal processes.
• Train managers in inclusive communication.
• Emphasise respect and fairness in workplace policies.

---

Council Loses Race Discrimination Case

In Leicester City Council v Parmar, the Court of Appeal upheld direct race discrimination. The facts raised an inference of discrimination, and the Council failed to show otherwise.

Lessons

• Apply processes consistently across employees.
• If deviating from standard processes, document the reasons carefully.

---

Other Notable Decisions

• Ryanair pilot: found not to be genuinely self employed, entitled to holiday pay and equal treatment.
• Waitrose couple: unsuccessful in discrimination and harassment claims after dismissal for unauthorised absence abroad.

---

Final Thoughts

Employment law continues to move quickly. Alongside legislative change, tribunal decisions remind employers of the cost of poor processes and inconsistent treatment.

If you would like support reviewing policies, training managers, or preparing for upcoming changes, contact us at victoria.hall@impactlawyers.co.uk or contact@impactlawyers.co.uk.

 

---