Welcome to the latest edition of The Loch Lens, where we bring you updates and practical guidance designed to help employers and business leaders navigate key developments with confidence, including:

From employment and commercial law to HR, immigration and family law, training, and mediation, our insights are here to support you. Don’t miss future updates, subscribe to our monthly LinkedIn newsletter

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Lidl GB has entered into a legal agreement with the Equality and Human Rights Commission (EHRC) following a Tribunal finding that it failed to take all reasonable steps to prevent sexual harassment of a young employee between 2019 and 2021. The Tribunal found that managers were unaware of the company’s anti-harassment policy and that no risk assessments had been conducted, with complaints only acted on once raised by staff.

The agreement builds on steps Lidl GB has already taken, including additional manager training, broader bullying and harassment training, and completion of a sexual harassment risk assessment in consultation with the EHRC. Under the new Worker Protection Act, employers now have a proactive duty to prevent harassment, meaning liability can arise even in the absence of reported incidents.

As part of the agreement, Lidl GB has committed to running staff surveys, monitoring informal and formal complaints, reviewing past complaints, consulting DE&I groups, and updating internal policies and training. The EHRC will monitor the implementation of these actions to ensure ongoing compliance and effectiveness.

Baroness Kishwer Falkner, EHRC Chairwoman, emphasised that all employers have a legal duty to prevent sexual harassment and must demonstrate reasonable steps. She welcomed Lidl GB’s improvements and stressed that sexual harassment is never acceptable, highlighting the importance of proactive prevention and robust workplace policies.

Click here for more information, or here to download our guide to navigating the new duty to prevent sexual harassment.

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An Employment Tribunal has ruled that up to 45 minutes of daily online shopping at work is not “excessive” and does not automatically justify dismissal. The decision arose from a case brought by Anna Lanuszka, an administrator at a small accountancy firm, who was sacked after her employer installed spyware on her computer.

The Tribunal found that the claimant’s use of websites such as Amazon and Rightmove during work hours, mostly during lunch breaks or gaps in responsibilities, was reasonable. The judge also noted that the employer’s managing director had used her computer for personal matters, reinforcing that the employee’s activity was not unusual or prohibited.

Evidence showed that the employer had created diary entries to suggest prior warnings and performance issues, but the Tribunal concluded these records were fabricated and that there had been no legitimate grounds for dismissal. The judge described the employer as being “determined” to sack the claimant despite the absence of performance concerns.

The Tribunal awarded the claimant over £14,000 for unfair dismissal, noting that the personal use of the computer was neither prohibited nor excessive. The ruling highlights that brief, reasonable personal use of work devices is not automatically a disciplinary offence and that employers must act fairly and transparently when considering dismissal.

Find out more about the case.

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An Employment Tribunal has held that calling a manager a “d***head” in the heat of the moment did not amount to gross misconduct. The case, Herbert v Main Group Services, involved an office manager who was summarily dismissed after making the comment during a meeting.

Judge Sonia Boyes found that while the language was clearly inappropriate, it was a one-off incident and not serious enough to justify dismissal without warning. The Tribunal awarded the claimant £15,000 in compensation and £14,000 in legal costs.

The ruling highlights that employers should act proportionately when dealing with inappropriate behaviour. Strong language, if isolated and out of character, may not justify dismissal.

The case also reinforces the need for fair procedures, including proper investigation and warnings where appropriate, before deciding to dismiss an employee.

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The Trades Union Congress (TUC) has published a detailed strategy setting out how AI can be developed in workplaces in a way that protects workers’ rights and ensures they have a meaningful say in its use. The proposals build on the TUC’s draft Artificial Intelligence (Regulation and Employment Rights) Bill from April 2024.

Key recommendations include requiring AI Impact Assessments before deployment, ensuring human oversight of AI-assisted decisions in areas such as recruitment and disciplinary processes, and giving workers better access to data generated about them by AI systems. The TUC also calls for updates to collective bargaining, expanding it to cover training, work organisation, and the introduction of new technologies, supported by reforms to statutory recognition rules.

The strategy also suggests changes to workplace regulation, including widening the Competition and Markets Authority’s remit to protect workers and enabling the Information Commissioner’s Office to support collective data rights through trade unions. On corporate governance, the TUC recommends that companies with more than 250 employees introduce board-level worker representation and report on how AI affects their workforce.

For the public sector, the TUC proposes that AI and digital systems be developed in-house by default, with mandatory good work standards in public contracts and union participation throughout digital transformation projects. Overall, the TUC emphasises that worker voice and collective bargaining must be at the centre of AI in the workplace to ensure it benefits all workers, not just technology owners and shareholders.

We support organisations in navigating the responsible integration of AI and the creation of policies. If you’re looking to harness AI tools effectively, without compromising professional integrity, get in touch, or learn more about creating your AI policy here.

The Employment Rights Bill has reached its final stage in Parliament, with the third reading taking place on 3 September and the Bill going to the Commons for consideration of Lords amendments on 15 September. Royal Assent is now the only step remaining before it becomes law.

The government has confirmed that the changes will be introduced gradually, rather than all at once. This phased approach is intended to give employers time to prepare and seek advice. The first wave of reforms is due in April 2026 and is expected to have a direct impact on HR planning and budgets.

With around 28 reforms included in the Bill, organisations are being urged to begin preparations now. Employers should focus on identifying which changes will most affect their operations and costs, prioritising compliance steps, and planning ahead for workforce and budget adjustments.

Early preparation will be essential to minimise risk and ensure businesses are ready to meet the new legal requirements as they come into force.

Read more about the final stage here and download our ebook on the Employment Rights Bill here.

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On 27 August 2025, the Equality and Human Rights Commission (EHRC) confirmed that it is taking regulatory action following its review of policies and guidance concerning access to single-sex spaces. The review arose from the government’s May 2024 call for input, which invited examples of policies incorrectly suggesting that individuals have a legal right to access single-sex services based on gender self-identification.

Of the 404 examples submitted, around 10% were found to misinterpret the Equality Act 2010 provisions on single-sex spaces. The EHRC requested access to all submissions to assess wider compliance and inform updates to its Services Code of Practice. It subsequently identified examples from sectors including policing, education and health where policies misstated the law.

The EHRC has now written to 19 organisations requiring them to withdraw or amend policies that wrongly imply an automatic right of access to single-sex spaces based on self-identification. Those organisations must provide assurances and confirm their timetable for revisions, with the EHRC monitoring compliance and warning that further enforcement action may follow.

This review highlights the regulator’s increasing scrutiny of how organisations interpret the Equality Act when drafting policies on separate and single-sex services. Employers and service providers should ensure that internal guidance accurately reflects the law and keep track of forthcoming updates to the EHRC’s Services Code of Practice, particularly in light of the Supreme Court’s decision in For Women Scotland Ltd v Scottish Ministers [2025] UKSC 16.

Learn more about the action taken.

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In CX v Secretary of State for Justice [2025] EAT 114, the EAT upheld an Employment Tribunal’s decision refusing a litigant in person permission to amend her claim to add disability discrimination complaints based on depression and anxiety.

The Tribunal found that the proposed claims were not a relabelling of existing allegations but wholly new claims that would significantly expand the case, requiring disclosure of medical records, further evidence and potentially a preliminary hearing. It also noted an unexplained four-month delay in bringing the application.

Balancing hardship, the Tribunal concluded that the prejudice to the respondent in terms of cost, delay and evidential disadvantage outweighed the claimant’s interest in adding the claims. The EAT confirmed this was a proper exercise of discretion under the Selkent principles.

The case illustrates the limits of amendment applications, particularly where new claims are raised late and would materially extend proceedings.

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The UK government has released a Neonatal care leave and pay: employers’ technical guide, providing detailed guidance on the statutory entitlements to neonatal care leave (NCL) and statutory neonatal care pay (SNCP), which took effect on 6 April 2025. The guide runs to 35 pages and includes worked examples to assist employers in applying the new rules in practice.

The guidance covers eligibility criteria, notice and information requirements, accrual and taking of leave, calculation of the relevant week and average earnings, and reporting obligations to HMRC. It also addresses how NCL and SNCP interact with other statutory family leave rights, including maternity, paternity, shared parental, adoption and parental bereavement leave.

More complex scenarios are also explored, such as transfers between neonatal care facilities, neonatal care provided at home, multiple births, readmissions into neonatal care, and overlapping entitlements. The technical guide complements earlier government guidance for employees and employers, as well as separate guidance published by Acas in April 2025.

The publication of this guide provides employers with practical clarity on how to administer neonatal care leave and pay. Employers should ensure policies are updated to reflect the new rights, familiarise HR teams with the rules, and be prepared to handle complex situations where entitlements overlap with other types of statutory leave.

Find more about the guide here.

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New research from pensions provider Aegon shows that more UK workers feel confident about retiring comfortably than in previous years, with 1 in 3 employees now reporting they are “very or extremely confident,” up from 22% in 2023. The findings suggest growing optimism about long-term financial wellbeing.

However, confidence is not evenly shared across demographics. Young workers and men report higher levels of optimism, almost 55% of 25- to 34-year-olds and 43% of men are highly confident, while just 23% of women and 14% of 45- to 54-year-olds feel the same. Aegon highlighted that earnings growth, easing inflation, and stable interest rates are likely contributing factors.

Despite the encouraging trends, concerns remain that many workers, particularly younger employees in defined contribution schemes, may not be saving enough to secure a comfortable retirement. Government data indicate that 38% of people aged 22–66 are not on track to meet retirement targets, and The Pensions Regulator warns of a potential generational shortfall in retirement savings.

The findings underscore the ongoing challenge of pensions adequacy and the need for targeted support. In response, the UK government has revived the Pensions Commission to assess savings requirements and explore policy solutions to ensure more people can achieve a secure standard of living in retirement.

Learn more about the support we offer for those transitioning to retirement.

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An Employment Tribunal has awarded £138,012 to former train signaller Rowena Owens after finding she faced serious and sustained sex discrimination at a Wimbledon signal centre. Around 20 colleagues, including managers, subjected her to hostile treatment and degrading comments, described by the Tribunal as “of the most serious kind.”

The claimant began experiencing discrimination from her first day at the Wimbledon centre in 2015, in a largely male workplace. The Tribunal found the conduct forced her to take sick leave in 2017 and caused long-term harm to her health, professional development and personal life.

In its remedy judgment, the Tribunal awarded compensation at the top of the “top band” for injury to feelings, alongside sums for psychiatric injury and therapy costs. The Tribunal concluded that the discrimination had a profound and lasting impact on the claimant’s wellbeing and career progression.

Network Rail accepted the Tribunal’s findings and acknowledged failings in addressing workplace culture. The case serves as a reminder to employers of the serious consequences of unchecked discrimination and the importance of fostering inclusive workplaces, promptly addressing complaints, and ensuring staff are trained in equality and diversity.

More information on our training programmes can be found here.

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Acas has launched a five-year strategy to modernise dispute resolution in UK workplaces, aiming to prevent and resolve conflicts more efficiently. The initiative seeks to reduce the annual cost of workplace conflict, estimated at £28.5 billion, through earlier intervention, improved management, and targeted support for industries and groups at higher risk of disputes.

The launch follows new YouGov polling of over 1,000 employees, which found that 44% of workers who experienced workplace conflict in the past three years believe it has increased. Pay, working patterns, and capability issues were highlighted as the most common causes of disputes, while Acas handled a record 117,000 individual disputes in 2024-25, the highest since the COVID-19 pandemic.

The strategy sets out measures to prevent disputes, support employers with guidance and training, equip workers to resolve issues early, and harness technology and AI to enhance service delivery. Acas aims to maintain its high settlement rates, 70% for individual disputes and 90% for collective disputes, while doubling support to SMEs.

Acas emphasises that fostering constructive workplace relationships benefits both employees and employers, protecting productivity and supporting economic growth. The strategy comes ahead of significant changes in employment law through the Employment Rights Bill and highlights the growing importance of early intervention and dispute prevention in modern workplaces.

Explore the strategy further here.

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The government has confirmed plans to raise English language requirements across several visa routes, including Skilled Worker, family, and settlement visas. The change forms part of its 2025 Immigration White Paper, Restoring Control over the Immigration System.

The new thresholds are expected to take effect before the end of 2025. While the precise details are still to be confirmed, Skilled Worker applicants may see the requirement increase from CEFR B1 to B2. Dependants will also face higher standards.

B2 level, classed as Upper Intermediate, requires applicants to understand complex texts, communicate fluently with native speakers, and produce clear, detailed speech and writing. This represents a step up from B1, which reflects more basic workplace competence.

Employers who sponsor overseas workers should start preparing now. Higher thresholds may narrow the pool of eligible candidates, particularly in technical roles. Offering English language training or pre-visa testing could help minimise recruitment challenges once the new rules take effect.

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The government has outlined plans to significantly increase the Immigration Skills Charge (ISC), a levy paid by employers for each year they sponsor most Skilled Worker visas. The ISC was introduced to encourage investment in the resident workforce.

Under the proposals, small and charitable sponsors would see the fee rise from £364 to £480 per year, while medium and large sponsors would face an increase from £1,000 to £1,320. The change, set out in the 2025 Immigration White Paper, has not yet taken effect but is expected to be implemented later this year.

For employers, the impact could be substantial. Over a five-year visa, the increase may add up to £1,600 per worker. This will be a particular concern for businesses relying on multiple sponsored employees.

Organisations are being advised to factor the new rates into recruitment budgets and workforce planning now, to avoid unexpected costs when the higher charges come into force.

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As an extension of your team, Loch connects the dots between leadership, compliance, people strategy, and business growth when partnering with ambitious organisation leaders and individuals to solve complex challenges.

Loch’s integrated approach provides commercially focused, pragmatic solutions that help you when you’re faced with a decision that will protect, grow, or future-proof your future. By covering every angle, we give you the confidence to move forward for long-term success.