This month we have several key updates affecting employers and HR professionals. A recent ACAS-commissioned survey found that 35% of British employers believe AI will boost productivity, prompting calls for responsible adoption, staff engagement, and clear workplace AI policies. The Department for Business and Trade has issued guidance on new regulations affecting the remuneration of Directors, which streamline reporting requirements for UK quoted companies and clarify new rules on director pay and policy compliance. Lastly, the EHRC has issued an interim update in response to the Supreme Court’s decision in For Women Scotland v The Scottish Ministers, signalling forthcoming revisions to its guidance on the legal definition of sex and urging employers to stay informed and seek legal advice as needed.
- ACAS: Survey shows 35% of employers believe AI will increase workplace productivity
- Directors’ remuneration: Guidance note to Companies (Directors’ Remuneration and Audit) (Amendment) Regulations 2025
- Legal Definition: EHRC publishes interim update on practical implications of the UK Supreme Court judgment about the meaning of ‘sex’
ACAS: Survey shows 35% of employers believe AI will increase workplace productivity
A survey conducted by YouGov on behalf of ACAS has revealed that over a third (35%) of employers in Britain believe that AI will increase productivity in the workplace. This finding suggests that many businesses are optimistic about the potential benefits of AI, with them also expecting it to provide a competitive edge (12%), increase knowledge (11%) and enable more work to be done with fewer staff (11%).
ACAS Chief Executive, Niall Mackenzie, notes that while AI has the potential to empower workers and support the delivery of different workplace tasks, it is crucial that businesses use it responsibly. Early, proactive discussions with staff, trade unions and other worker representatives should address the potential implications of AI and ensure its adoption is well-informed. These can highlight how AI will improve workers’ roles, reassure them that they are valued and confirm that human involvement will still be needed. Employers should develop clear policies regarding the use of AI at work.
Employers are reminded that AI is not perfect, and outputs should be checked for accuracy, tone and bias. AI should be cited when used. Employers’ data privacy policies will apply for the use of AI. Workers should be careful when entering business sensitive or personal information into public tools.
Directors’ remuneration: Guidance note to Companies (Directors’ Remuneration and Audit) (Amendment) Regulations 2025
The Department for Business and Trade has published a guidance note, dated April 2025, to the Companies (Directors’ Remuneration and Audit) (Amendment) Regulations 2025 (SI 2025/439). The regulations, which come into force on 11 May 2025, remove certain over-lapping requirements from the directors’ remuneration reporting framework for UK quoted companies.
The guidance note clarifies when the changes will apply. It includes:
- Directors’ remuneration report. Changes will apply to the first remuneration report published for a financial year beginning on or after 11 May 2025.
- Directors’ remuneration policy. Changes will apply to any new policies approved by shareholders on or after 11 May 2025. Policies approved before this date will continue in force until the company receives shareholder approval for a new policy. A policy prepared in accordance with the pre-11 May 2025 requirements that is not due to be put to shareholders for approval until after that date, should ideally be amended to fit with the new regulations before the shareholder vote.
- Payments to directors outside of directors’ remuneration policy. From 11 May 2025, any proposed payments to directors that fall outside the existing remuneration policy must be made in accordance with the revised procedure for shareholder approval of such payments set out in the regulations.
- Reporting pay of a Deputy CEO that is not a director of the company. From 11 May 2025, any such non-director Deputy CEO will no longer need to be paid in accordance with an approved directors’ remuneration policy. The directors’ remuneration report for a financial year beginning before 11 May 2025 will need to include the pay of any such Deputy CEO for that whole financial year.
- Changes to paragraph 19 of Schedule 8 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The regulations remove the requirement to report a comparison of the annual percentage change in each director’s pay with that in employee pay. Paragraphs 19A to G of Schedule 8 require equivalent and more detailed information about the relationship between CEO pay and wider employee pay.
- Website publication of the directors’ remuneration report and information about the shareholder vote on the directors’ remuneration policy. These requirements will no longer apply from 11 May 2025.
Legal Definition: EHRC publishes interim update on practical implications of the UK Supreme Court judgment about the meaning of ‘sex’
Following the UK Supreme Court judgment in For Women Scotland v The Scottish Ministers [2025] UKSC 16, the Equality and Human Rights Commission (EHRC) has published a statement that it is working to update its statutory and non-statutory guidance.
Given that many people will have questions about the judgment and what it means for them so the updated guidance will provide further clarity. In the meantime, they have published an ‘ECHR interim update’ which is intended to highlight the main consequences of the judgment, with a caution that employers and other duty-bearers must follow the law and should take appropriate specialist legal advice where necessary.
Further Information:
If you would like any additional information, please contact Anne-Marie Pavitt or Sophie Banks on: hello@dixcartuk.com
