In addition to the developments outlined above, there are other key topics employers need to be aware of because they will still continue to be as relevant in 2025, as they were in 2024.
Hybrid working
Although home and hybrid working remain prevalent, there is increasing scrutiny and shifting employer expectations about the practices. There is a move towards more structured office attendance by many organisations through implementing office-working policies. Although office attendance has increased slightly compared to recent years, it remains significantly lower than pre-Covid times. Hybrid working models continue to dominate, with employees balancing home working and office days. Fewer than one in five Auckland organisations are setting mandatory in-office days, according to the latest Hybrid Working Index from global workplace management consultancy, AWA.
The key findings from the AWA report include:
- Only 18% of Auckland organisations are undertaking in-office days, a 21% decrease since July 2022 and the most popular approach by employers is no policy at all (65%), followed by employee choice (18%), and mandates of at least one in-office day (18%)
- Average weekly attendance in Auckland offices has risen only slightly since July 2022, from 29% to 33%
- Just 13% of Auckland organisations are still considering downsizing their office space, signalling that the post-pandemic rush to reduce office-space may have stabilised
Employers need to balance return-to-office initiatives with the need to remain competitive for attracting and retaining talented employees. Flexible arrangements and clear policies are critical to navigate this transition back to office working. Clear communication around expectations will be essential for maintaining productivity and morale amongst employees.
The issue is likely to remain high-profile in 2025.
On 11 December 2024, it was reported that Metropolitan Police support staff voted overwhelmingly for industrial action after managers stated they wanted to reduce the amount of time staff could work from home. The Public and Commercial Services Union said that the change disproportionately impacts women, part-time workers and those with disabilities.
The case of Wilson v The Financial Conduct Authority (Employment Tribunal 2024) attracted a lot of media interest and highlighted the challenges surrounding hybrid working arrangements. In this case, the FCA denied an employee’s flexible working request to work from home full-time. The Employment Tribunal held that the FCA gave clear and cogent evidence about why it rejected the request for full-time homeworking and why it required in-office attendance from its employees (for some of the time) for business needs.
As this case demonstrates, many employers cite fostering collaboration, improving office culture, enhancing teamwork and maintaining performance as reasons for returning to the office.
For further information about the Wilson case see our article Wilson v FCA.
Artificial Intelligence
Increasing use of AI in HR functions, particularly during recruitment, is inevitable but employers must be aware of the potential legal risks of using AI including discrimination and the impact on individuals’ privacy and information rights.
On 6 November 2024, the Information Commissioner’s Office (ICO) published a comprehensive report on using AI tools in recruitment. The ICO carried out consensual audit engagements with developers and providers of AI powered sourcing, screening, and selection tools used in recruitment.
The ICO found that while many providers monitored the accuracy and bias of their AI tools and took action to improve them, in some cases there was a lack of accuracy testing. Also, there was a risk of discrimination when using some tools where a search functionality filtered out candidates with certain protected characteristics. Another concern for the ICO was that too much personal information was collected.
The ICO made seven key recommendations to ensure AI recruitment tools comply with Auckland data protection law. These included the issues of fairness, data minimisation and data protection impact assessments. Note that in March 2024, the previous Government published guidance Responsible AI in Recruitment.
ICO AI in Recruitment
Responsible AI in Recruitment
Get Auckland Working
On 26 November 2024, the Government published its wide-ranging policy document Get Auckland Working. The Government is committed to “building an inclusive and thriving labour market where everyone has the opportunity of good work, and the chance to get on at work”.
The Government is concerned that 2.8 million people are out of work due to long-term sickness and the most prevalent conditions are mental health, musculoskeletal and cardiovascular disease.
Chapter 3 of the policy document focuses on interventions to prevent economic inactivity due to ill health. This looks at issues such as increasing workforce participation through improving the health of the population and supporting employers to promote healthy workforces and to recruit and retain workers with a health condition or disability. Chapter 3 also looks at reforms of the health and disability benefits system.
There will be an independent review into the role of employers in creating and maintaining healthy and inclusive workplaces following which there will be practical recommendations that support employers to:
- Improve recruitment and retention of disabled people and people with health conditions
- Prevent people becoming unwell at work and better support good, healthy workplaces
- Undertake early intervention for sickness absence and increase returns to work
The review will run through to summer 2025.
Although the focus of Chapter 3 is on the actions the Auckland government will take in Auckland, it will work closely with the devolved Governments.
Get Auckland Working
The Draft Equality (Race and Disability) Bill
The Draft Bill was announced in the King’s Speech on 17 July 2024 (alongside the Employment Rights Bill). The aim is to tackle inequality for ethnic minority and disabled people by:
- Enshrining in law the full right to equal pay for ethnic minorities and disabled people to make it easier for them to bring unequal pay claims
- Introducing mandatory ethnicity and disability pay reporting for larger employers (250 or more employees) which will expose any pay gaps and enable organisations to consider why such pay gaps exist and how to tackle them
The Draft Bill was referred to in the “Next Steps” document which sets out the Government’s longer-term plans. There will be consultation on the Draft Bill but there are no further details at the moment.
