Toxic workplace cultures – a tough nut to crack

In recent weeks and months, there has been a slew of news stories about toxic workplace cultures.

Just this week, Dominic Raab was forced to resign as Deputy Prime Minister and Justice Secretary after an independent investigation conducted by Adam Tolley KC found that Raab’s behaviour towards civil servants at the Ministry of Justice and at the Foreign, Commonwealth and Development Office constituted bullying in two cases.

In March this year,?Baroness Louise Casey’s excoriating report?on the Metropolitan police force – commissioned in the wake of the rape and murder of Sarah Everard by Wayne Couzens, a serving Met police officer – was published, providing vivid and disturbing detail of an institutionally racist, sexist and homophobic organisation more interested in protecting its own than in identifying and sacking officers guilty of criminal and corrupt behaviour.

Less than a month later, it was announced that the Confederation of British Industry (CBI) is being investigated by the police in response to numerous sexual misconduct allegations against the CBI’s senior managers first?publicised by the Guardian, including two allegations of rape. The accused include the CBI’s former director general, Tony Danker, who was dismissed following an independent investigation conducted by the law firm Fox Williams. The CBI has cancelled all its upcoming events, not least because many of its invited guests (including Andrew Bailey, Governor of the Bank of England) have withdrawn as speakers. The organisation is currently haemorrhaging members, including pharma companies AstraZeneca and GSK –?the latter’s CEO, Emma Walmsley, has condemned the allegations as “extremely shocking” and “pretty repulsive”. Rain Newton-Smith, the CBI’s new boss, has issued a public apology on Twitter “for how the organisation let [the women who came forward] down”, and that she wishes to “reward [their] bravery by finding a better path forward”. The future of the organisation hangs in the balance, its reputation in tatters.?

These stories all serve as a timely reminder that toxic work cultures can be found anywhere, including some of the country’s most powerful and august institutions. The legal sector is certainly not exempt from this problem, something which is reflected in both the new guidance on workplace culture issued by the Solicitors Regulation Authority (SRA) and our own experience advising numerous fellow lawyers over the years.?

Though the SRA’s guidance is a blunt tool in some ways, it does send a clear signal to law-firm partners and managers that they need to rein in bullies and pay attention to the needs of their employees. This is something that our own employment and equality specialist, Georgina Calvert-Lee, explores in greater depth in her new article published on the Law360 website, which you can find?here?(paywalled).

As experts in employment law, we see a variety of workplace cultures in our work, and it’s often reflected in how an employer deals with a grievance or challenge. The fact is that all the diversity and inclusion policies and ESG statements in the world are meaningless without a positive culture and commitment to inclusion from the very top and a willingness to make hard decisions – including disciplining and even dismissing senior/rainmaking employees if their behaviour merits it.

If there has been a history of acceptance of particular behaviours, it will be very challenging to turn this around. It may well require a change of leadership: if leaders have either been part of or turned a blind eye to the behaviour, they will lack the credibility to spearhead any cultural change. Policies and training need to be put in place, and positive behaviour must be modelled in reality and consistently by senior staff, from the managing partner on down.

Post the?#metoo?movement, there is an increasing willingness to speak out against unacceptable behaviour at work, and social media can amplify the voices of victims and survivors.?So we expect to see many more instances where the spotlight of public attention is shone on the culture of large institutions. Organisations that wish to avoid attracting such negative publicity – as well as reaping the myriad benefits of a healthy workplace culture – would be well-advised to take a hard, honest look in the mirror and instigate the changes required to create a happy, thriving workforce.

When will we see the end of the pay gap?

Given the?recent news?that the gender pay gaps remain significant in many of the world’s largest law firms, you might wonder when we might finally see the demise of the pay disparity between men and women more broadly. Spoiler alert: it won’t be in our lifetime at the current glacial rate of change. The?latest figures?confirm that pay equity remains a very distant prospect, with men still earning more than women in most companies.

An organisation’s pay gap certainly reflects the value it places on the work done by male and female employees. However, if your company does have a pay gap, the data only tells you so much. You need to ask why the figures are as they are and how the underlying issues can be addressed. For example, the gender pay gap doesn’t necessarily mean employees are being paid unequally for equal work – although this may very well be a factor, it could equally - or also - reflect the fact that a company has more men in senior positions (which is, of course, an issue in itself).?

At Bellevue Law, we regularly advise senior female executives on potential discrimination claims, including equal pay claims as well as issues of wider sex discrimination.?Equal pay claims remain relatively rare amongst professionals, at least in part due to a lack of pay transparency.?However, we regularly come across instances of a woman’s contribution being undervalued compared to that of her male counterpart, and this being reflected in pay, bonuses and selection for promotion, all of which in turn will be reflected in the organisation’s gender pay gap.?

The legal reporting surrounding this topic, as well as much of the media focus, concentrates on the gender pay gap, which large organisations are legally obliged to report; yet companies may also want to consider gaps in the pay of employees with other protected characteristics, such as race and disability. Some employers also track social class, which is not a legally protected characteristic but does yield important data on a company’s class diversity and the opportunities it offers people from different socio-economic backgrounds.

While the data on the pay disparity between different employee groups is certainly instructive, what ultimately matters is the actions that employers take to bridge the gap. We need more than performative hand-wringing if we are ever to make the workplace a fairer environment for everybody.

If you believe that you are being treated unfairly at work, we can help.?Our In Confidence service is a fixed price initial employment law advice service, offering expert support and guidance to employees facing a difficult issue at work. In Confidence allows you to benefit from insightful and practical advice based on our team’s years of experience at an early stage, providing insight on potential outcomes and practical actionable advice.?

Don’t suffer in silence if you believe you are being unfairly treated. To find out more about how we can help you,?visit our website.

Five key employment law issues to tackle for fast-growth tech companies

We are privileged to advise the founders and management teams of many exciting fast-growth, tech-based companies through the ups and downs of building and scaling their businesses.?As these companies grow, it’s vital that they consider - regularly and meaningfully -?that their contracts, policies and practices remain appropriate and relevant. Combined with a positive leadership culture, this will protect them legally, help them to thrive and make them attractive to potential investors.?Here are five key employment law tips based on our experience:????

1. Ensure everyone has a written contract with appropriate terms, including notice periods which protect the business without adding unnecessary cost, sensible and fair post-termination restrictions and appropriate protections for IP and confidential information.??Service agreements for senior hires need to be drafted individually and align with articles and shareholders’ and investment agreements. Relatedly, where employees have shares or options, these need to be properly documented and registered.?All of this will avoid potential disputes and give investors confidence. It's basic hygiene in many ways, but I have seen more than one dispute where terms weren't clear or equity wasn't properly documented, leading to major headaches when the contingent liability had to be disclosed to potential investors, or even resolved at some expense in advance of the investment round.
2. Put in place appropriate employment policies. Some (e.g. grievance and disciplinary procedures) are legally required and others (e.g. equality, diversity and inclusion, anti-tax avoidance) are sensible to provide a degree of legal protection to the business. Equally, if not more importantly, communicate policies clearly and train staff on them and expected standards of behaviour.
3. Think about how you recruit. It is natural for a start-up to hire from its founders’ networks, but this creates a risk that they will recruit disproportionately in their own image. Tech businesses often experience many of the diversity issues more commonly associated with traditional businesses, and one way to address this is to be conscious in looking to recruit from a diverse pool of candidates.
4. Ensure you have systems in place (including regular appraisals and suitable training and development opportunities) to monitor and manage performance, and be proactive and take advice when issues arise, as they are bound to do as any business grows. Often, the sooner they are tackled, the sooner and better they are resolved. Many of our clients in this space only need our support a few times a year, but having specialist insight and input at these key points adds a lot of value.
5. Most important of all, set the culture from the top. Policies can only go so far, and how senior management conduct themselves, and address issues when they arise, will determine culture and compliance. Wrongdoing can happen anywhere, but it is how it is addressed that counts: take complaints seriously, investigate them properly (using external investigators where appropriate) and tackle and learn from issues.

Our team of City-trained employment lawyers has a wealth of experience advising employers.?Please?get in touch?if you’d like our support.

Tesla ordered by jury to pay more than $3 million to Black ex-worker who endured racist abuse

A jury in San Francisco has ordered Tesla to pay a Black former employee $3.2m in damages following his successful racial discrimination suit against the company. Owen Diaz, who worked as an elevator operator at the electric car manufacturer’s Silicon Valley plant from June 2015 to July 2016, suffered racial abuse “straight from the Jim Crow era”.?

This is yet another example of companies taking a high-handed, scorched-earth approach to dealing with employee grievances, as our employment law expert Georgina Calvert-Lee highlights:

“Employers shouldn’t wait for a jury to make them pay $3 million to an employee subjected to racist abuse. They should take every step to repair the damage done voluntarily when it is brought to their notice, and ensure it doesn’t happen again. When are employers going to realise that a diverse and inclusive workforce is actually good for the bottom line, and so stop this type of harassment altogether?”

Wise words, indeed. The damage that cases like this cause the affected company go far beyond the pecuniary, and the hit to Tesla’s reputation and workforce morale and loyalty cannot be quantified.

Firm news: congratulations to Anjali Malik, our first trainee solicitor, and welcome to Senior Consultant Chris Croft and paralegal Emily Kendon

Bellevue Law’s first trainee solicitor, Anjali Malik, joined us as a paralegal in September 2022 and has worked on various matters, including wills, probate administration and lasting powers of attorney, attending mediations and Employment Tribunal hearings and taking notes of investigation interviews, as well as supporting the firm’s administration. She has impressed everyone with her enthusiasm, hard work and ability, and we are very excited to be part of the next stage of her journey.

Welcome Chris Croft.?

Chris is our newest Senior Consultant Solicitor at Bellevue Law. Chris has significant experience in the financial services sector. With a proven track record in regulatory issues and operational requirements of financial service businesses, Chris most recently served as a director for a dual regulated FCA and PRA regulated business.?

Prior to this, Chris acted as head of the corporate department and senior member of management of a niche city shipping and insurance law firm. He specialises in regulatory issues and the operational and business requirements of financial services businesses.?

His portfolio includes overseeing the implementation of the PRA and FCA operational resilience requirements, and building and plan, to implement Consumer Duty. Chris has also advised on various business critical IT and outsourcing contracts, as well as investments in property and in online businesses.?

With Anjali stepping up to start her training contract, we’re delighted to welcome new paralegal Emily Kendon.?

Emily joins us following her time with Bindmans LLP, where she specialised in Clinical Negligence and Personal Injury.

During her time at Bindmans LLP, Emily made a lasting impression with her involvement in a large-scale case, leveraging her degree and?knowledge to effectively assist in working on civil claims for those affected by the Grenfell Tower fire.?

Emily’s role includes supporting the private client team with the preparation of wills and lasting powers of attorney, assisting with employment law, litigation and investigation work and file opening and administration.

We’re hiring: Private client lawyer

We’re looking for an experienced private client lawyer to join our growing practice.?If you’re a senior private client lawyer interested in a more flexible working life and a supportive culture without compromising on the quality of work, please?get in touch.

"Bellevue Law have a genuine approach to supporting your case no matter how big or small. I always felt heard and understood , my views considered and respected.?All responses were timely and professional never leaving doubt. At times, going above and beyond to ensure right decisions and next steps were made in order to protect me from a cost perspective. I would not hesitate to recommend Bellevue Law." - Senior Executive