Pensions

Pensions

This Overview outlines the Practice Note material available in our Pensions subtopic.

Pensions—general considerations for employment lawyers

Payment into pension schemes that are registered with Her Majesty's Revenue and Customs (HMRC) has significant tax advantages for both employers and employees (see: ‘The pensions tax regime’ below). Pension schemes are also a way of attracting and retaining employees.

Under European law pension benefits are considered to be deferred pay, so they are subject to the principle of 'equal pay for equal work'. A significant amount of indirect discrimination litigation has occurred in the past few years; the majority of which had been brought by part-time workers, the majority of whom are women.

Employers may run occupational pension schemes for the benefit of their employees. Occupational pension schemes tend to be either 'final salary' (also known as 'defined benefit') schemes or 'money purchase' (also known as 'defined contribution') schemes:

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final salary schemes commit the scheme, under the deed and rules, to paying members a set annuity on retirement
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money purchase schemes require employees and employers to pay a set amount each year into the scheme, usually expressed as a percentage of

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Latest Employment News

House of Commons publishes motions ahead of consideration of Employment Rights Bill on 8 December

The House of Commons on 5 December published motions relating to Lords amendments to the Employment Rights Bill (ERB), in advance of its consideration of the those amendments on 8 December (to be followed by a swift ping-pong back to the Lords, expected on 10 December).The government amendments include: guaranteed hours offers for zero hours workers—the government has offered a concession in the form of consultation on the initial reference period unfair dismissal—in addition to the reduction of the qualifying period from two years to six months (rather than its removal altogether), the government amendments would remove the unfair dismissal compensation cap entirely by omitting section 124 of the Employment Rights Act 1996 (ERA 1996)reasons for dismissal for which there is no qualifying period—the government proposes to include in the list of reasons in ERA 1996, s 108(3) dismissal for failure to disclose a spent conviction or ancillary circumstances seasonal workers—the government proposes to consult with those representing the interests of seasonal workers and their employers before making regulations contributions to political funds from union members—the government amendments provide for an opt-out notice to be given on a day specified in, or determined by, the trade union’s rules, and for the Secretary of State to publish guidance (within three months of the measures coming into force about the kind of provision which the Secretary of State considers it is appropriate for the rules of a trade union to make for these purposes industrial action balloting—the government amendments require the Secretary of State, before bringing regulations into force to have regard to the effect provision for balloting other than by post on the proportion of those eligible to vote in such ballots doing so a number of MPs have tabled an amendment that the Commons should insist on the removal of the unfair dismissal qualifying period.

Exploring the earned settlement proposals

Immigration analysis: In the Home Office’s own words, the earned settlement proposals represent ‘the biggest shake-up of the legal migration system in nearly half a century’. The publication of the Government’s White Paper, ‘Restoring control over the immigration system’, on 12 May 2025, signalled its intention to introduce a new model of ‘earned settlement’, including increasing the qualifying period from five to ten years (with potential reductions for contribution to the economy and society), but provided scant detail, deferring this to a consultation process in ‘the autumn’. The hotly anticipated policy statement and consultation document, ‘A fairer pathway to settlement’ was finally published on 20 November 2025, setting out the proposals. Arguably, the 60-page document raises more questions than it answers, with a problematic lack of definitions, omission of important details, and conflicting references. In a number of respects, it goes much further than may have been foreseen from the initial indications of the White Paper. So what will it all mean for migrants and employers in the UK—and how can advisors help support them through these times of great uncertainty and seismic change? This article examines the main proposals, the key questions, and the practical implications. Written by Sophie Barrett-Brown, Senior Partner and Head of UK practice, Laura Devine Immigration.

Finance Bill 2026 published

Finance Bill 2026 was published on 4 December 2025.

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.