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What UK Employers Must Do Now After Supreme Court Clarifies Legal Definition of ‘Sex’
The UK Supreme Court has confirmed that the term “sex” in the Equality Act 2010 refers to biological sex, not gender identity. In other words, even where somebody identifies as trans, they do not change sex for the purposes of the Equality Act even where they have a Gender Recognition Certificate (GRC).
This ruling, from the case For Women Scotland Ltd v The Scottish Ministers, has major implications for workplace policies, particularly those relating to single-sex spaces and services. In response, the Equality and Human Rights Commission (EHRC) has released some interim guidance affirming that where the law allows for single-sex spaces, these should be based on biological sex.
While many welcome the clarity this ruling provides, employers must not lose sight of a crucial point: transgender individuals–including transsexuals with or without a Gender Recognition Certificate–are still protected under the Equality Act (Eq Act).
Under the Eq Act, “gender reassignment” is a protected characteristic. This means anyone who is undergoing, has undergone, or is proposing to undergo a process of gender transition is protected from discrimination, harassment, and victimisation in the workplace. That protection stands regardless of the Supreme Court’s interpretation of “sex“.
So, while employers must now align certain policies with the biological definition of sex, they continue to have a legal and moral duty to treat transgender staff with dignity and fairness.
Here are five key steps employers should take now:
1. Review and amend relevant policies
Audit policies related to single-sex spaces, roles, or services. Ensure they align with the clarifies legal definition of sex while remaining consistent with your broader equality commitments.
Action: Consider inclusive options and document any reasons why possible options cannot be accommodated.
2. Offer inclusive alternatives where possible
The EHRC encourages practical solutions where single-sex spaces may exclude trans individuals. While the Supreme Court ruling defines single space facilities to be delineated by reference to biological sex, there remains a need to ensure the health and safety, dignity and privacy of all employees. So, providing some gender-neutral facilities (in the form of a room which is lockable from the inside) should be considered.
Action: Consider inclusive options and document any reasons why possible options cannot be accommodated.
3. Communicate changes sensitively
Policy updates should be rolled out transparently and respectfully. Help staff understand the legal context while affirming your commitment to a respectful workplace for all.
Action: Deliver briefings and written guidance that reinforce both compliance and inclusion.
4. Train managers and HR teams
Your leaders must understand how to implement the new definitions without breaching anti-discrimination protections.
Action: Train staff to apply the updated policies lawfully and with empathy, especially in sensitive situations.
5. Stay informed
The EHRC plans to issue further detailed guidance. Stay alert to updates and seek legal advice when needed to navigate grey areas.
Action: Set a calendar for regular legal and policy reviews, and sign up for alerts from our team.
Conclusion
The court’s ruling provides legal clarity on “sex,” but the Eq Act still robustly protects trans individuals from discrimination. Employers are therefore encouraged to ensure their leaders, managers and HR are fully versed on how to manage changes following the Supreme Court ruling to continue to support an inclusive workplace and minimise the risk of breaching the Eq Act.
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Are Your Claw-Back Clauses Compliant With UK Immigration Laws? Navigating the Latest Sponsor Licence Changes
From December 2024 and January 2025, significant changes have been introduced to the UK Sponsor Licence Guidance, and claw-back clauses in employment contracts have been in the spotlight. These changes are critical for employers sponsoring skilled workers under the UK immigration system, as non-compliance could result in severe penalties, including the suspension or revocation of your sponsor’s licence.
A claw-back clause allows employers to recoup certain costs associated with sponsorship and visa applications if an employee leaves their role prematurely. While these clauses can protect your company’s financial investment, the updated guidance introduces strict limitations to ensure fairness and compliance with UK immigration law.
Key questions to consider:
- Are your claw-back clauses clearly defined and legally enforceable?
- Are you aware of the costs you can and cannot recover from employees?
- Is your company prepared for a Home Office audit?
Employers would need to clearly define which costs can be recovered through a claw-back clause. Employers would typically include claw-back provisions for:
- Relocation expenses
- Sign-on bonuses
- Recruitment fees
- Specific training costs
- Visa and immigration costs
- Professional membership fees
Employers must ensure that these costs are reasonable and directly related to the employee’s role, and employment contracts must clearly set out the circumstances in which claw-back provisions apply, the specific costs that can be recovered, and the timeframe and method of recovery.
The newly updated guidance now explicitly prohibits employers from recouping the following costs from employees:
- Immigration Skills Charge (ISC)
- Certificate of Sponsorship (CoS) fees
- Sponsorship licence fee and ‘associated administrative costs’
These costs are considered to be the responsibility of the employer and cannot be passed on to the employee, even indirectly. The main concern revolves around associated administrative costs. According to the official guidance and the Sponsorship Management System, these costs definitely include priority service fees, which employers are not allowed to recover. In addition, following consultation with the Home Office, legal fees associated with sponsorship must also be covered by the employer.
In the case of newly established companies, even if the founder or entrepreneur initially pays for the legal and administrative costs personally, the application for a sponsorship licence and the associated fees must ultimately be paid by the company. This ensures compliance with government regulations and helps to avoid potential audit issues.
Employers need to review their existing employment contracts and sponsorship policies to ensure they comply with the updated guidance. Failure to do so could result in the suspension or revocation of their sponsorship licence. In addition, clear and transparent communication with both current and prospective skilled workers is crucial. Employers should provide detailed information on claw-back clauses and their implications, and ensure that employees fully understand their rights and obligations.
At Quastels, we specialise in corporate immigration and employment law, and offer tailored solutions to help employers navigate these changes with confidence. Our services are designed to ensure your business remains compliant while protecting your investment in global talent.
For further assistance or to arrange a compliance review, please contact our team. We are here to help you navigate these changes and ensure your sponsorship practices remain robust and compliant. Let us help you protect your business and your employees.
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Quastels Recognised in The Legal 500 UK 2025 Rankings
We are delighted to announce that Quastels has been recognised in this year’s The Legal 500 UK 2025 rankings across two categories:
- ‘Leading Firm’ in Commercial Property: Corporate Occupiers
- ‘Firm to Watch’ in Industry Focus: Retail & Consumer
About The Legal 500
The Legal 500 is one of the most prestigious legal directories, assessing and ranking law firms and lawyers based on independent research, client feedback, and industry expertise. Recognition in The Legal 500 is a testament to a firm’s high-quality legal services and strong client relationships.
At Quastels, we take great pride in our reputation for excellence and client satisfaction, and we are honoured to be acknowledged in this year’s rankings.
Key Rankings
Commercial Property: Corporate Occupiers
For the fourth consecutive year, our Commercial Property team has been ranked in the Commercial Property: Corporate Occupiers category. Additionally, we are proud to have earned a ‘Client Satisfaction’ badge, reflecting our dedication to exceptional service and expertise in this field.
The ranking highlights our extensive legal expertise, particularly in:
- Portfolio management
- Development transactions
- Pre-lets
- Joint ventures
Our practice spans the retail, leisure, and office sectors, delivering tailored advice to businesses navigating commercial property matters.
Recognised Legal Professionals
The Legal 500 ranking specifically commends our team leaders and key individuals for their contributions:
- Mark Cornelius (Partner and Co-head) – Recognised for his expertise in headquarters relocations, acquisitions, and disposals.
- Naomi Jones (Partner and Co-head) – Praised for her work in commercial real estate and conditional sale and purchase agreements.
- Aisha Anjum (Senior Associate) – Noted for her real estate finance work, regularly assisting property funds and institutional investors.
- Stephanie Houston (Senior Associate) – Recognised for her focus on the construction aspects of property-related joint ventures.
Client Testimonials
“They know their market and have solid experience. Approachable and ensures the task and advice is thorough and completed in appropriate timescale.”
“Naomi Jones – detailed, efficient, responsive, approachable and commercially minded. Highly recommended.”
“Mark Cornelius has a deep knowledge and understanding of commercial property. He is very personable and always provides legal advice which is clear, commercial and pragmatic, enabling us to close transactions without compromising on risk.”
“We have always experienced professionalism, reliability and commercial awareness with Quastels. The team provides invaluable guidance, backed by a wealth of expertise and experience. Quastels are our go-to for all legal matters, providing outstanding service every time.”
“Naomi Jones is fantastic and always gets the work done. She is available whenever we need her. She always delivers results. Her team is also fantastic.”
“Aisha Anjum is an absolute pleasure to work with – her knowledge is always relevant and concise. She works quickly and transparently, with any delays being communicated well in advance. She helped me navigate a particularly difficult lease reassignment in 2023 that tested everyone’s patience, but not Aisha’s! Absolutely unflappable, and extremely competent. Delighted to work with her and I look forward to our next transaction.”
Industry Focus: Retail & Consumer – ‘Firm to Watch’
This year, we are pleased to expand our presence in The Legal 500 rankings, being named a ‘Firm to Watch’ in the Retail & Consumer industry focus category.
Our Brands & Luxury sector offering received special recognition for its cross-disciplinary approach, providing legal expertise across Employment, Corporate & Commercial, and Real Estate.
The Legal 500 highlighted the contributions of:
A Commitment to Excellence
We are incredibly proud to be recognised in both Commercial Property: Corporate Occupiers and Retail & Consumer, reaffirming our standing as a trusted legal partner.
A heartfelt thank you to our clients, colleagues, and The Legal 500 for their continued support and kind words. This recognition motivates us to continue delivering exceptional service across all our practice areas.If you require legal assistance, please contact us – we would be delighted to help.
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