Issue 124
Welcome to the latest edition of our international employment news update.
In this edition we look at:
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UK Government U-turn on manifesto pledge for 'day one' workers' rights
The UK Government has retreated on plans to grant workers protection from unfair dismissal from day one of employment. Following sustained pressure from the House of Lords, ministers have conceded to a six-month qualifying period, down from the current two years but far short of their manifesto commitment.
Labour backbenchers and trade unionists have critiqued the decision, condemning the Employment Rights Bill as "a shell of its former self". Businesses, however, have welcomed the compromise, arguing that immediate protection would have stifled hiring, particularly of younger workers.
The six-month qualifying period aligns the UK with international systems, whilst clearing the path for other day-one rights to sick pay, holiday pay, and parental leave to now pass into law.
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Court of Appeal upholds whistleblowers' right to dual claims
Whistleblowers can pursue both unfair dismissal claims under section 103A of the Employment Rights Act and separate detriment complaints under section 47B concerning the dismissal itself, following Court of Appeal decisions in two joined cases. The court heard Rice v Wicked Vision and Treadwell v Barton Turns, both addressing whether employers can be vicariously liable for the dismissal decisions taken by employees in whistleblowing detriment claims.
Relying on the earlier decision from Timis v Osipov, the Court of Appeal found that employers could be vicariously liable for a dismissal decision taken by an employee, permitting the claimants in Rice and Treadwell to pursue their complaints as both unfair dismissal and whistleblowing detriment claims. However, the Court of Appeal stated that, had it not been bound by Timis, it would have reached a different conclusion. This acknowledgement underlines the inadequacy of the current position and the need for clarification from either the Supreme Court or Parliament.
The ruling carries significant practical implications, as the threshold for succeeding in a whistleblowing detriment claim is lower than that for automatic unfair dismissal. In addition, successful detriment claims allow compensation for injury to feelings, which is unavailable in standard unfair dismissal cases.
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'Job hugging' takes hold as US workers prioritise security over advancement
The pandemic-era 'great resignation' has given way to 'job hugging', an emerging trend that sees workers clinging to their current roles despite diminishing satisfaction. Recent research shows that 75% of American employees plan to stay put until at least 2027, primarily due to the fear of a challenging job market. Workers cite ghost vacancies, inflated job requirements and reduced financial incentives as some of the key reasons for the minimal differentiation between remaining or switching positions.
Experts warn that fear-driven retention carries risk for employers and employees alike. Whilst employees face potential burnout and career stagnation, organisations may harbour disengaged staff who underperform yet remain due to market anxiety. For employers, the challenge lies in converting reluctant retention into genuine engagement, ensuring 'job huggers' contribute productively rather than simply occupying positions out of necessity.
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France introduces measures to retain and reintegrate senior workers
On 26 October 2025, France introduced new legislation in favour of senior employees aimed at encouraging them to remain in employment or return to work. The measures include additional or reinforced career interviews for workers aged 45 and 57 and easier access to part-time arrangements under a progressive retirement scheme. In addition, companies with at least 300 employees must now negotiate collective agreements relating to the employment of experienced employees every three years.
One of the key changes is the introduction of the 'experience valorisation contract', a new indefinite term employment contract targeting individuals aged 60 or over who are registered as unemployed. The contract encourages workforce re-entry whilst securing the transition to retirement, permitting employers to retire employees without consent once they qualify for a full pension or reach the age of full pension eligibility, rather than waiting until age 70 under the current rules. The reforms represent a significant shift in France's approach to senior employment, balancing workforce retention with retirement planning flexibility for both employers and experienced workers.
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Lloyds Bank faces scrutiny for mining staff data during pay negotiations
Lloyds Banking Group is under fire after using personal banking data from over 30,000 employees to inform pay negotiations. The UK's largest lender analysed staff spending habits, savings rates, and salary increases, comparing them against the wider public to demonstrate that employees weathered the cost-of-living crisis better than customers. The data allegedly supported the bank's conclusion that staff were more 'financially resilient' than the general public and this justified a lower pay award.
Whilst Lloyds insists that it only used aggregated and anonymised data in line with GDPR regulations, it remains unclear whether individual account access occurred during the compilation of that data. The controversy is particularly acute given that staff are actively encouraged to bank with Lloyds, raising questions about whether employee loyalty is being weaponised against workers' interests.
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Poland expands seniority calculations to include self-employment and civil contracts
Poland will count periods spent running a business or working under civil law contracts towards employment seniority from 1 January 2026, with the changes applying retrospectively to previous years. This change requires employers to include self-employment periods and contract work when calculating length of service. The reform addresses a longstanding gap in Polish employment law, where workers who moved between traditional employment and self-employment or civil contracts saw their accumulated service time fragmented. By recognising these alternative working arrangements, the government aims to provide fairer treatment for Poland's increasingly flexible workforce, ensuring employees receive appropriate benefits and entitlements regardless of historical employment structure.
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Irish Government launches consultation on remote working legislation
The Irish Government has opened a public consultation on the right to request remote working, seeking views on whether legislation introduced in March 2024 remains effective and fit for purpose. The Work Life Balance and Miscellaneous Provisions Act 2023 established a framework allowing employees to request remote working arrangements, though it stopped short of granting an automatic right, enabling employers to decline requests based on business needs. The consultation has been described as an opportunity to assess whether the legislation operates effectively in practice and has produced unintended consequences. Whilst the code has faced criticism from workers whose requests were declined, fewer than a dozen of over 50 employee cases have reached the Workplace Relations Commission (which can only ensure proper procedures are followed rather than overturn employer decisions). The consultation comes as major employers tighten hybrid working policies. The consultation runs until 9 December via the Department of Enterprise, Tourism and Employment website.
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