This month we look at government plans to pilot scrapping fit notes, reminders to always follow procedures, particularly when it comes to dismissing staff and the number of single parents being refused flexible working requests increases.

Government to pilot scrapping fit notes in four areas

The government has announced a year long trial in four parts of the UK that will replace the traditional GP issued sick note with a new personalised return-to-work system. Under the pilot, patients will either receive an initial fit note followed by referral to a community health worker, or be sent directly to occupational therapists who can recommend adjustments to support a return to work.

Ministers have described the existing system as “broken”, pointing out that more than 11 million fit notes were issued last year, with over 90% declaring the patient unfit for work entirely. The CIPD has welcomed the move but called for greater clarity on how employers will be involved, stressing that businesses must have a genuine voice in what support they can realistically offer. The British Chambers of Commerce called it an “important first step”.

For small businesses, which typically lack in-house occupational health, the shift could mean more structured support for employees on long-term absence, but also new expectations around engagement with the process.

Last month our articles focused on cross functional team collaboration.

This month, look out for tips on employee recognition through non-monetary rewards.

UK unemployment hits five year high as vacancies fall sharply

Official data from the Office for National Statistics published in May shows UK unemployment has risen to 5.0% for the three months to March 2026, the highest level in five years. 

Job vacancies have fallen to 705,000, the lowest point since early 2021, with hospitality and retail among the hardest-hit sectors. Payrolled employees fell by over 100,000 in the year to March, and early April figures suggest a further drop of 210,000 on the year. Wage growth is also slowing, with regular pay rising at 3.4% annually.

For small business owners, the picture is mixed: a softer labour market may ease recruitment pressure in some roles, but falling consumer confidence and rising costs continue to squeeze margins. The CBI has noted that businesses are taking a cautious approach to hiring, with global uncertainty adding to domestic pressures from the National Insurance increases that came into effect earlier this year.

Manufacturer ordered to pay £329,000 after surveil­lance and unfair dismissal of disabled employee

A glass manufacturing company has been ordered to pay over £329,000 in compensation following a long running tribunal case involving a disabled team leader who was put under covert surveillance while on sick leave. The employee, who had developed a chronic nerve condition as a result of earlier cancer treatment, was placed under observation by a private investigator after managers became suspicious he was working for another employer.

Footage of him on a friend’s farm was used as evidence to justify dismissal, without the company first seeking medical advice on whether the activity was inconsistent with his condition. The tribunal found this approach fundamentally flawed: rather than obtaining expert medical opinion, the employer relied on assumptions.

Never dismiss an employee on long term sick leave based on surveillance footage alone, even if you’re certain it means they are malingering. Before drawing any conclusions about whether an employee’s activities are inconsistent with their condition, obtain a medical opinion. Covert surveillance carries significant legal and reputational risk, so take advice before taking this step.

Massage therapist wins £26,000 after being dismissed for unreliability while on sick leave

A soft tissue therapist working at a small chiropractic clinic has won £26,809 at tribunal after being dismissed while on sick leave for a wrist injury, with her employer citing a lack of “reliability”. The therapist had both tendonitis and endometriosis, and had requested 10 minute rest breaks between clients to manage her condition. The clinic declined, saying it was not operationally practical, and later dismissed her when she could not return on the date demanded.

The tribunal found that sickness absence linked to a disability was a significant factor in the dismissal, amounting to discrimination arising from disability under the Equality Act 2010. Critically, a colleague with a comparable absence record had been offered a phased return, an inconsistency that weighed heavily against the employer. The clinic’s failure to consider the requested adjustment, which the tribunal described as modest, was central to the finding.

Requests for reasonable adjustments, even small ones like short breaks, must be genuinely considered, not dismissed as inconvenient. If you accommodate one employee’s absence or return differently from another, be ready to explain why. Inconsistency in how you treat employees with similar circumstances is one of the most common reasons employers lose discrimination claims. Document your decision making carefully at every stage.

The cross party Work and Pensions Committee has recommended a statutory 14 day deadline for employers to respond to reasonable adjustment requests from disabled workers, with written explanations required when requests are refused. The proposal mirrors existing flexible working rules and follows warnings from the committee that the workplace remains a “hostile environment” for too many disabled people.

An investigation by the Bureau of Investigative Journalism has found that some tribunal hearings are being scheduled as late as 2030, with the open caseload exceeding 65,000 cases. The backlog is expected to worsen as Employment Rights Act reforms add an estimated 7,000 extra claims annually, a significant reason to invest in early resolution and sound HR processes before disputes escalate.

Research by campaign group Pregnant Then Screwed shows that 14% of mothers who requested flexible working have been turned down since the Employment Relations (Flexible Working) Act took effect in 2024, with single parents seeing a 109% increase in refusals. Employment relations experts warn that blanket refusals carry real discrimination risk, particularly where some employees in similar roles are granted flexibility and others are not.

As we move into June, many of us are enjoying the recent spell of exceptionally warm weather. While the sunshine is welcome, it also serves as a reminder for employers to think about workplace wellbeing. Whether staff are working outdoors, travelling for work or in offices that become uncomfortable in higher temperatures, simple measures such as access to drinking water, flexible dress codes and sensible adjustments to working arrangements can make a significant difference.

If you look back over this month's updates, a common theme emerges: those employers who take a proactive, practical and people-focused approach to workplace issues are far more likely to avoid disputes, support employee wellbeing and create a positive working environment.

As always, if you would like advice on any of the topics covered in this newsletter, please get in touch.

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