Work/Life - international employment news update

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Issue 128

Welcome to the latest edition of our international employment news update.

In this edition we look at:

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UK government publishes new consultations on employment rights reforms

The Government has published an updated implementation timetable for the Employment Rights Act 2025 (ERA 2025), alongside six new consultations on key workplace reforms.

On the revised timeline, six measures are now confirmed for 6 April 2026, including statutory sick pay from the first day of absence, whistleblowing reforms, doubling of the collective redundancy protective award, and simplified trade union recognition procedures. The new Fair Work Agency will be formally established the following day. Meanwhile, protections relating to fire and rehire practices have been pushed back to January 2027.

The new consultations cover the threshold for triggering collective redundancy obligations, restricted contractual variations to reduce fire and rehire practices, trade union electronic balloting, flexible working consultation requirements, tipping policy obligations, and the umbrella company regulatory framework. The closing dates for these consultations range from 1 April to 21 May 2026.

Find out more about each consultation here.

We are hosting an in-person breakfast briefing on the key measures in the Employment Rights Act (ERA) 2025. This is taking place on 12 March 2026 at our London office – register your interest here.

German Federal Labour Court rules app-managed companies need not form works councils

Germany's Federal Labour Court has issued a landmark ruling clarifying where platform-based delivery companies must permit works councils to be formed, following disputed elections in several German cities. The Court held that so-called "remote cities", meaning delivery zones staffed exclusively by drivers who communicate with their employer via app, do not qualify as independent business units under the Works Constitution Act. A genuine local management structure, capable of making personnel and social decisions, is essential. Algorithmic management through a smartphone app does not meet that threshold.

Works councils must instead be established in "hub cities", where HR functions and administrative structures are physically located. The ruling brings clarity for platform-based employers, whilst raising questions around the scope of German legal protection where "hub cities" are located abroad.

Wall Street's sleep test: M&A firm settles discrimination claim on eve of trial

New York-based M&A advisory firm Centerview Partners has settled a disability discrimination claim brought by a junior analyst who was dismissed after disclosing she needed eight to nine hours of sleep per night, reaching an agreement just before the case was due to go to trial.

Kathryn Shiber, who joined Centerview in 2020, disclosed her sleep requirement after being assigned to a high-profile, multibillion-dollar mandate. The bank initially accommodated her with a guaranteed no-work window between midnight and 9am, but dismissed her weeks later, arguing that she was unable to perform the essential functions of the role.

Whilst Centerview maintained that Shiber's claims were without merit, settlement was reached on the eve of going to trial. The case sparked widespread debate about working conditions for junior bankers on Wall Street, where gruelling hours are commonplace. The central legal question, whether overnight availability constitutes an essential job function, was ultimately left unanswered by the settlement.

UK workers on zero-hours contracts hit record high

The number of workers on zero-hours contracts has reached a record 1.23 million, rising by 91,000 in a year, according to analysis by Lancaster University based on government ONS data. The surge has been driven largely by those who engage 16 to 24-year-olds, with young workers five times more likely to be on zero-hours contracts than older counterparts. Critics argue that the contracts leave workers facing unpredictable schedules and unable to plan financially, whilst proponents maintain they offer valuable flexibility for young people and those balancing education or childcare.

Under the Employment Rights Act 2025, eligible workers are set to gain the right to guaranteed hours, reasonable notice of schedules, and compensation for last-minute shift cancellations. However, these measures remain subject to consultation and secondary legislation.

Neurodiversity claims nearly double in five years

UK employment tribunal cases linked to neurodivergent conditions have almost doubled since 2020, rising 95% from 265 cases to 517 in 2025, according to official government data. A further 19% rise was recorded between 2024 and 2025 alone.

Autism and ADHD are now the most cited conditions in tribunal proceedings, both reaching record levels last year with 121 and 118 cases respectively. Formal diagnosis is not required for legal protection under the Equality Act 2010; if a condition has a substantial and long-term adverse effect on day-to-day activities, the duty to make reasonable adjustments is triggered.

With the Employment Rights Act 2025 expected to further reshape the litigation landscape, organisations that fail to review their policies, recruitment processes, and management practices risk exposing themselves to costly and avoidable claims.

AI meeting tools and workplace policies out-of-step

AI transcription tools are rapidly normalising the recording of workplace meetings, and the legal risks are escalating faster than most organisations realise. Data from virtual office software provider Roam says that 22% of its users' online calls were recorded in January 2026, up from just 9% eighteen months ago.

With AI-enabled transcription now free, more accurate, and sometimes valuable, the implications of its increasing use deserve serious attention. Employers should consider establishing clear policies on recording consent, document retention, and privilege protection before those issues are tested in a dispute.

UK gender pay gap to remain until 2056 at current rate

According to the Trades Union Congress (TUC), the gender pay gap will not be eliminated until 2056 if progress continues at its current pace. Analysis of official pay data suggests that the disparity between average male and female wages stands at 12.8%, equivalent to £2,548 per year.

The gap is widest in finance and insurance, at 27.2%, and most pronounced amongst workers aged 50 to 59, partly reflecting the long-term career and earnings impact of women pausing work to take on caring responsibilities. Notably, significant gaps persist even in female-dominated sectors, including education (17%) and health and social care (12.8%).

The TUC argues that improved access to flexible working, paid parental leave, and childcare provision are essential to closing the gap, welcoming the Employment Rights Act 2025 as a step forward. Employers with more than 250 staff will be required to publish plans detailing how they intend to reduce their gender pay gap from 2027. Business groups, however, caution that enhanced obligations risk increasing costs and reducing employers' willingness to hire at an already challenging time.