Tue 08 Apr 2025

Employment Law Round Up: April 2025

Our monthly employment law round up.

Consultation on mandatory ethnicity and disability pay gap reporting launched

As expected, a consultation has been launched seeking views on the introduction of mandatory ethnicity and disability pay gap reporting for large employers (those with 250 or more employees).  Responses will be used to inform the development and drafting of the Equality (Race and Disability) Bill. The UK government proposes to use a similar reporting framework that is currently used for gender pay gap reporting. Amongst other things, the consultation seeks views on the production of action plans, enforcement, how data should be collected and compared and additional reporting requirements for some public bodies. 

ICO publishes new guidance on keeping employment records

The Information Commissioner's Office ("ICO") has updated its Employment practices and data protection: Keeping employment records guidance.  The guidance is intended to assist any employer who keeps employment records in understanding their obligations under the UK GDPR and DPA 2018 legislations. Designed to be read alongside other employer related data protection guidance including Employment practices and data protection: Information about workers’ health and Employment practices and data protection: Monitoring workers, the guidance is provided in the form of questions and answers, with links to other relevant information.  There are also a number of useful checklists covering issues including equality monitoring, pension and insurance schemes, mergers and acquisitions. 

Ban on use of non-disclosure agreements in higher education settings to proceed

The UK government has confirmed that it will bring into force the prohibition on English higher education providers entering into non-disclosure agreements with staff, members, students or visiting speakers in relation to complaints of sexual abuse, harassment or misconduct, or other bullying or harassment. The ban had been put on hold in July 2024 while the government considered the Higher Education (Freedom of Speech) Act 2023. The government confirmed it only intends to bring into force some "key" provisions of the Act, of which the ban on non-disclosure agreements is one. 

Neurodiversity at work

ACAS has published an independent research paper by Birkbeck, London University Neurodiversity at work: bridging research, practice and policy.  The paper recognises the increasing prevalence of neurodiversity, with around 15 to 20% of adults being neurodivergent, and the importance of training and positive action in the workplace. This includes the need for employers to be proactive when it comes to making reasonable adjustments and not waiting for a formal diagnosis. It also highlights the common co-occurrence of neurodiversity and mental health conditions. ACAS recently published their own guidance on neurodiversity at work which can be found at Understanding neurodiversity: Neurodiversity at work.

Increase in amount of SMP small employers can recover

Regulations are due to come into force with effect from 6 April 2025 and it will increase the 'compensation rate' small employers can recover in respect of the National Insurance Contributions ("NIC") they must pay on Statutory Maternity Pay ("SMP"). While small employers currently recover 100% of the SMP they pay to employees, the NIC compensation rate is calculated at 3% of the SMP the employer has paid. This is to increase to 8.5% from 6 April 2025.

Make an Enquiry

From our offices we serve the whole of Scotland, as well as clients around the world with interests in Scotland. Please complete the form below, and a member of our team will be in touch shortly.

Morton Fraser MacRoberts LLP will use the information you provide to contact you about your inquiry. The information is confidential. For more information on our privacy practices please see our Privacy Notice