February HR News and Employment Law Update

News

New Neonatal Care Leave coming into effect

The Government has confirmed that, starting 6 April 2025, the Neonatal Care (Leave and Pay) Act, passed in 2023, will grant eligible working parents up to 12 weeks of additional leave when their newborns require neonatal care. The leave itself is a day-one right, with statutory pay available for those meeting minimum service and earnings requirements.

The leave applies to parents whose babies are admitted to neonatal care within the first 28 days after birth and require a hospital stay of at least seven full days. It must be taken within the first 68 weeks of birth and can be used in one-week blocks.

Whilst the vast majority of employers would of course be supportive in such difficult circumstances, this new entitlement aims to provide financial and job security for affected families while creating clearer obligations for businesses.?

Government Unveils Ambitious AI Strategy

Prime Minister Keir Starmer has announced a new AI strategy aimed at driving economic growth and modernising public services. The plan includes AI growth zones, with the first in Culham, Oxfordshire, to attract investment and streamline development.

The government will expand public compute capacity 20-fold, develop a national data library, and establish an AI energy council to address power demands. Tech firms have pledged ￡14bn and over 13,000 new jobs to support the initiative.

While AI promises productivity gains, unions have raised concerns about workplace surveillance, discrimination, and job security, calling for stronger worker protections. If you are starting to use AI in your business and don’t yet have anything in the way of guidance, training or policies, it might be time to consider putting something in place.

Two-Thirds of Workers Fear Burnout Amid Rising Workloads

A new report by recruitment firm Robert Half has found that 62% of employees are increasingly concerned about being overworked, while 60% believe their employers prioritise profit and productivity over well-being.

The survey of over 1,200 workers also revealed that nearly a third (30%) fear rising national insurance costs will lead to increased workloads with fewer resources. Younger workers (18-34) were most affected, with 65% worried about being overworked.

A separate study by Mental Health UK found that 91% of adults reported high stress in the past year, and one in five workers (21%) took time off due to stress-related mental health issues. Among younger workers (18-24), 35% had taken stress-related leave, compared to just 10% of those over 55.

Burnout, characterised by exhaustion, detachment, and reduced performance, can lead to chronic fatigue, absenteeism, and high turnover. The study found that almost half (45%) of workers said their employer had no plan to prevent burnout.?

Legal

Tribunal awards ￡22k where employer did not follow own policy

A social media worker dismissed for underperformance has won ￡22,210 in compensation after a tribunal ruled she was not given formal warnings, despite a history of performance concerns.

The claimant underwent multiple informal performance improvement plans (PIPs) and was ultimately dismissed after failing to meet content creation targets. The tribunal found that although she would in all likelihood have been dismissed anyway due to performance concerns, her employer did not follow its own performance policy, which required formal warnings before termination, therefore her dismissal was unfair.

For small business owners, this case highlights the importance of adhering to formal procedures. Even when an employee’s performance is clearly lacking, businesses must document concerns, provide clear warnings, and follow established policies to avoid costly legal claims. This employer had followed a lengthy informal procedure but had stopped short of issuing formal warnings.

To protect your business, ensure performance policies are consistently applied, maintain detailed records, and give employees a fair chance to improve before considering dismissal.

Other?stuff

Only 1% of workers trust AI to make major workplace decisions, a CIPD poll of 2,000 people found. While 63% would trust AI for insights but not decision-making, 35% would not trust it at all.

Ageist stereotypes about older workers remain widespread, with a study finding 24% of respondents saw hiring over-50s as a poor business decision. The Centre for Ageing Better survey also found 22% viewed training older workers as a waste and 32% believed they lost tech skills with age.

Average weekly earnings rose by 5.6% between September and November, with private sector pay growth reaching 6%, while public sector pay increased by 4.1%, according to the ONS. Meanwhile, job vacancies fell for the 30th consecutive quarter, and unemployment rose to 4.4%, remaining above pre-pandemic levels.

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