With over 4000 attendees for the in-house senior counsel sessions over 2024, the last session of this year was an update on notable commercial law updates and their impact on business with Radius Law’s Iain Larkins and Sandra Martins. They focused on proposed employment law changes, data protection prosecutions, changes to consumer law and director duties.
The case of the mis-placed adjective, failure to prevent fraud and other updates…
The main commercial law updates included the case of the mis-placed adjective in Cantor Fitzgerald & Co v YES Bank Limited which cost Cantor their $7.5 million financing fee as well as the three conjoined motor finance commission claims: (1) Johnson v FirstRand Bank Limited (London Branch) T/A Motonovo Finance (2) Wrench v FirstRand Bank Limited (3) Hopcraft v Close Brothers Ltd saw the court ruling in favour of the claimants who had approached car dealers to act as their credit brokers to arrange financing to allow them to purchase second-hand cars. The dealers all received commission from the banks and the court found that dealers owed the duty to provide information, advice or recommendation on an impartial or disinterested basis as identified in Wood v Commercial First Business Ltd , though this is contrary to the FCA’s guidance. Though Iain suspects an appeal to the Supreme Court is on the way, the case has also led to the FCA on extension of the current pause to the time firms have to respond to consumers about motor finance complaints involving a DCA.
Another case Iain highlighted was Northamber PLC v Genee World Ltd in which the court ruled that simply placing orders with the knowledge that an exclusivity agreement would be breached is enough to make the recipient company liable for the breach.
Other notable legal developments this year include the new offence of introduced by the Economic Crime and Corporate Transparency Act 2023. The offence is due to come into force on 1 September 2025 and holds companies liable if an ‘associated person’ commits fraud to benefit the organisation or to anyone that receives services from the company.
On consumer law, Iain mentioned the Digital Markets Competition and Consumers Act 2024 which received Royal Assent on 24 May 2024.
Effective corporate governance
Moving on to the important topic of ESG, Iain noted the pulling out certain findings such as the directors’ failure to challenge the establish narrative and heavy reliance on senior executives’ perspectives which ultimately led to a ‘groupthink’ culture as well as the lack of IT expertise on the board. Iain emphasises how every business should have concrete understanding of IT and AI and guided us to the , asking them to ‘report material concerns immediately’ and bring ‘matters to the attention of regulatory and prosecuting authorities’.
For more on effective corporate governance, Iain recommended Radius Law’s event on 25 March 2025 to help re-think corporate governance and ensure you to have an effective Corporate Governance Programme. The event will be led by Iain himself and Gail Harrison of Sewells.
Other ESG developments included global ESG laws such as import bans under the Mexico forced labour regulation and reporting obligations under the Modern Slavery Act as well as adoption of the EU Corporate Sustainability Due Diligence Directive. Lastly, an important case was the landmark Court of Appeal decision in World Uyghur Congress v NCA in which it was held that businesses may be exposed to criminal liability if they deal in goods that they know, or suspect, may be tainted by human rights abuses.
Information exchange and wage fixing
The Court of Justice of the European Union (CJEU) ruled on information exchange following the Portuguese court seeking clarity from CJEU on whether 14 banks fined by the CMA in 2019 had caused harmful effects by information exchange. CJEU ruled that even a single information exchange can be a restriction of competition by ‘object’ if it reveals confidential and strategic information.
In other competition law news, Iain mentioned the European Commission’s that competitors planning to fix wages or agreeing to not poach each other’s staff will be breaching competition laws.
AI and data
On artificial intelligence and data, a key update was the new EU AI Act, which took effect on 1 August 2024 and is the first European AI regulation for all businesses developing, using, distributing or manufacturing AI systems. In UK AI developments, Iain noted the ICO’s which closed on 18 September 2024. The consultation series looked at how aspects of data protection law should apply to the development and use of generative AI models, as well as .
Iain addressed the new Product Security and Telecommunications Infrastructure (Security Requirements for Relevant Connectable Products) Regulations 2023 which put obligations on manufacturers to ensure that pre-installed device passwords are unique or chosen by the user, and to inform consumers how long security updates will be provided for. He also mentioned the Data (Use and Access) Bill, which is currently at its Committee Stage in the House of Lords which will update UK GDPR and the Data Protection Act 2018 and simplify subject access requests.
Lastly, there was mention of Russia fining Google, for more money than there is in the world and a number that Kremlin spokesman, Dmitry Peskov admitted he could not even pronounce, for restricting Russian state media channels on YouTube.
Preventing sexual harassment at work
Sandra covered employment law updates, from new legislation in force, to what is to come as well as notable cases concerning employment law in 2024.
On new legislation already in force, Sandra mentioned the Worker Protection (Amendment of Equality Act 2010) Act 2023 which creates a new duty on employers to take ‘reasonable steps’ to prevent sexual harassment of workers and within the workplace. It places duties on the employers to conduct a risk assessment to identify specific risks of sexual harassment and take action to prevent it, or, in the case where sexual harassment does occur, the employer must take action to stop it from happening again. Sandra recommended carrying out a risk assessment if not done already and ensuring that you have a comprehensive policy on sexual harassment. Failure to comply with the new duty could result in enforcement action by the Equality and Human Rights Commission, criminal liability and personal liability for the employee who harasses.
Sandra referred us to the following pieces of guidance:
EHRC:
ACAS:
The government is also planning to extend the protection under the Act by requiring employers to take not just the ‘reasonable steps’ but all reasonable steps to prevent sexual harassment.
Tips Act
The Employment (Allocation of Tips) Act 2023 which came into force on 1 October 2024, creates a duty to ensure that the total amount of qualifying tips gratuities and service charges paid at or attributable to, a place of business of the employer, is allocated fairly between workers at that place of business and that the allocated amount is paid to the relevant worker. The Tips Act statutory guidance is accessible . ACAS’s guidance on sharing tips fairly is also accessible .
What’s to come…
On what is to come in terms of employment legislation, Sandra highlighted amendments to the Trade Union and Labour Relations (Consolidation) Act 1992, coming into force on 20 January 2025. The act will be extended to allow tribunals to increase protective awards by up to 25% where the employer has unreasonably failed to comply with a relevant Code of Practice.
Employments rights reform
Discussing the government’s plans, Sandra noted the Employment Rights Bill which is at the Committee Stage in the House of Commons. The controversial right to claim a fair dismissal from day one is likely not to come into force before Autumn 2026. The extension to rights of zero hours workers and low hours workers is subject to regulations. These rights will include minimum guaranteed hours, reasonable notice of shifts and compensation for shift changes and cancellations. The government’s factsheet on the zero hours contracts in the Bill is accessible . The government is also on whether these rights should extend to agency workers.
On fire and rehire, employers will only be able to use it to effect a change in terms and conditions in circumstances where they can show that they were facing financial difficulties that threatened the viability of the business and that it was unavoidable to make those changes. The government’s factsheet on fire and rehire in the new Bill is accessible .
Sandra also addressed the on strengthening remedies against abuse of rules on collective redundancy and fire and rehire, the and new legislation on flexible working, discrimination and family-friendly rights.
Employment and the courts
Notable employment cases in 2024 included Commissioners for HMRC v Professional Game Match Officials Ltd where the UK Supreme Court held that the two main elements of the test for employment status (mutuality of obligation and sufficient degree of control) were met in a case concerning part-time referees. IR35 case Commissioners for HMRC v S & L Barnes Ltd saw a win for HMRC and Haycocks v ADP RPO UK Ltd addressed the principles governing the fairness of non-statutory redundancy consultation.
And with that, the 2024 in-house senior counsel sessions have come to an end. 2025 will kick off with a session on Leading Change, with Mark Smith who will share practical tools and techniques to lead change in an interactive way. We hope to see you there!
Leading Change
Date: Wednesday 29th January 2025
Time: 10:00 – 11:00 GMT
Register here
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