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Employment weekly highlights—4 December 2025

This edition of Employment weekly highlights includes: (1) the government U-turn on day-one unfair dismissal rights and pledge to lift the compensation cap, (2) Budget 2025 measure to make apprenticeships for under-25s ‘free’ for SMEs, (3) what is believed to be the first published employment tribunal ruling on non-binary gender identity since the April 2025 landmark Supreme Court ruling in For Women Scotland, (4) Court of Appeal decisions on whistleblowing detriment and arbitral proceedings, and the appropriate forum in a claim for misuse of trade secrets and copyright infringement, (5) EAT judgments providing a helpful summary of principles to be applied when considering the material factor defence in equal pay claims, with comment from Emma Darlow Stearn of Cloisters Chambers, and on the need for dismissing officers to consider performance during the most recent capability review period, (6) analysis by Tarun Tawakley, Rebecca Jobling and Carly Mather of Lewis Silkin of the growing role of AI use and disclosure obligations in employment tribunal proceedings, (7) dates for your diary, and (8) other news items of interest to employment practitioners.

First reading of National Insurance Contributions (Employer Pensions Contributions) Bill - £2,000 salary sacrifice cap

The National Insurance Contributions (Employer Pensions Contributions) Bill was published and had its first reading on 4 December 2025. The second reading of the Bill is scheduled for 17 December 2025.

UK budget lowers apprentice costs for smaller law firms

Law360: Small and mid-sized law firms in England were given a welcome boost when the Chancellor revealed in her Budget statement a new funding plan to make apprenticeships for under-25s 'completely free' for smaller enterprises, although legal recruiters point to unresolved questions over age restrictions.

Non-binary NHS worker loses claim over misgendering

Law360: An employment tribunal has rejected a non-binary National Health Service (NHS) worker's complaint over repeated misgendering at work, ruling that protections under UK equality laws did not apply.

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