Employment Law News Roundup – 24.11.25

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Rising Workplace Conflict

Workplace conflict is becoming a defining challenge for UK employers, according to new research published by Acas as it marks 50th anniversary.

The findings of the new report present a stark picture of the modern workplace, one marked by rising disputes, widening wellbeing concerns and growing pressure on managers to intervene earlier and more effectively.

Conflict Is Now at a Record High

Acas’s latest survey shows that 44% of working-age adults in Great Britain experienced workplace conflict in the past year - the highest level ever recorded. These disputes span a wide spectrum: from capability and performance issues (38%) to personal disagreements and relationship breakdowns (33%). Conflicts involve colleagues, managers, direct reports, customers and clients, reflecting the complex pressures facing today’s workplaces.

Some groups are disproportionately affected. Half of retail workers reported experiencing conflict. This is unsurprising given customer-facing roles have become more challenging post-pandemic. Rates were even higher for workers whose disabilities significantly impact daily life (68%). While levels were broadly consistent across regions and age groups, employees aged 55–65 reported notably fewer disputes (32%), raising questions about whether seniority reduces exposure, or whether older workers are simply less inclined to report conflict.

A Hidden Drain on Wellbeing and Productivity

The consequences of conflict stretch far beyond the initial disagreement. More than 57% of those involved reported stress, anxiety or depression as a result. This aligns with national trends showing record levels of long-term sickness absence linked to mental health conditions - an issue shaping everything from workforce participation to NHS waiting lists.

Nearly half of employees said conflict reduced their motivation or commitment, highlighting the quiet productivity losses occurring inside organisations. A previous Acas report estimated that workplace conflict costs the UK economy £28.5 billion per year, factoring in absence, presenteeism, staff turnover and time spent managing disputes.

How Conflict Is Being Managed - And Where It Breaks Down

Despite the rising prevalence, most conflicts are resolved informally. 45% are handled through conversations with managers, while 30% are resolved directly between the individuals involved. Fewer than 10% escalate to formal grievances or capability procedures, and less than 0.5% reach the employment tribunal stage.

But the report also highlights a worrying trend: almost one in five employees take no action at all. Problems left unaddressed often resurface, harden or escalate - leading to higher costs later on. Differences also emerge between managers and non-managers. While managers often seek HR support or attempt early intervention, many lack confidence in handling disputes involving their own direct reports.

Acas’s role in preventing escalation remains crucial. Its early conciliation service continues to resolve nine in ten potential tribunal claims, sparing employers and employees the cost, time and strain of litigation.

Policy Changes and the Road Ahead

The landscape is shifting once again as the Employment Rights Bill introduces new rights and procedural changes. Rising caseloads and more complex disputes mean that Acas is expanding and reshaping its advisory services. From December 2025, the early conciliation window will double from six to twelve weeks. This is intended to offer more time for resolution, though some warn that it may simply prolong conflict for the parties involved.

Reducing workplace conflict requires a proactive approach. Employers need to create cultures where concerns can be raised early, discussed openly and resolved informally wherever possible. This starts with ensuring managers have the skills and confidence to handle difficult conversations, spot issues before they escalate and respond consistently. Clear processes, strong communication, and an emphasis on early intervention can prevent minor disagreements from turning into costly disputes. By prioritising these foundations, organisations can strengthen trust, protect wellbeing and build more resilient, healthier workplaces.

The Challenges of an Ageing Workforce: Are Employers Ready?

As the UK’s workforce grows older, a major demographic shift is reshaping labour markets, productivity challenges and employer responsibilities. Longer lifespans, delayed retirement and rising economic inactivity among older workers are placing unprecedented pressure on organisations. New evidence, however, suggests that many employers are still unprepared.

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Employers Are Underestimating the Scale of the Shift

A new survey by Occupational Health Assessment Limited found that 55% of HR leaders believe employers lack sufficient awareness of the challenges posed by an ageing workforce. Only a small minority felt that existing wellbeing, attendance and occupational health policies adequately meet the needs of older workers.

This lack of readiness is stark when set against reality: one in three UK workers is now aged 50 or above, and this proportion is expected to rise sharply over the next decade.

Older workers bring decades of experience, stability and institutional knowledge. But statistically, they are also more likely to live with long-term health conditions. While they take fewer short-term absences than younger colleagues (just 5%), they are five times more likely to face extended periods away from work due to illness.

The UK’s labour market is already feeling the impact of ill-health. Long-term sickness has become one of the biggest drivers of economic inactivity, and employers are facing rising costs from prolonged absences, reduced productivity and recruitment challenges. Many organisations, however, continue to take a reactive rather than preventative approach.

Experts warn that focusing support solely on older workers is the wrong strategy. Instead, businesses need holistic wellbeing frameworks that support employees throughout their entire working life cycle. A workforce that remains healthier for longer is better equipped to work into later life.

What Employers Should Be Doing Now

The Keep Britain Working review calls for systemic change:

  • Early intervention, not crisis management
  • Preventative health strategies, not one-off wellbeing initiatives
  • Flexible working and adjustments, tailored to changing needs over a career
  • Better access to occupational health, particularly for SMEs
  • Age-inclusive policies, not age-specific ones

These recommendations align with a broader economic goal: keeping more people in work for longer to boost productivity, reduce pressure on public services and maintain organisational resilience.

With workforce age rising and ill-health increasing, the cost of inaction is mounting. Productivity, performance and organisational stability depend on employers adapting quickly. Those who invest now in age-inclusive practices, proactive health management and flexible support will be far better placed to navigate the demographic changes ahead.

For businesses planning for the future, supporting an ageing workforce isn’t just the right thing to do - it’s a strategic necessity.

Last Updated:  Tuesday, November 25, 2025

FAQs

What are the main causes of workplace conflict?

Workplace conflict often stems from performance issues, communication problems, personality clashes, workload pressures, and strained relationships between employees, managers or customers. Rising job demands and post-pandemic pressures have also contributed to increased friction in many organisations.

How does workplace conflict affect productivity?

Conflict can lead to stress, anxiety and disengagement, which in turn reduces motivation, increases absence and lowers overall performance. Unresolved issues often escalate, consuming management time and harming team morale, which directly impacts productivity

What can employers do to reduce conflict at work?

Employers can reduce conflict by promoting early, open communication, ensuring managers are trained to handle difficult conversations, and providing clear internal processes for raising concerns. Encouraging informal resolution and creating a supportive workplace culture helps prevent small issues from becoming major disputes.

When should workplace conflict be escalated to a formal process?

Conflicts should move to a formal process when informal discussions fail, the issue involves serious misconduct, or the situation is affecting wellbeing, performance or team operations. Clear policies help managers decide when escalation is appropriate.

What challenges do employers face with an ageing workforce?

Employers must manage higher rates of long-term health conditions, support longer working lives, and adapt roles or working patterns for older employees. Many organisations lack robust wellbeing, occupational health and absence-management strategies to meet these needs.

How can employers better support older workers?

Meeting the needs of an ageing workforce requires flexible working options, early intervention on health issues, access to occupational health services, ergonomic adjustments, and age-inclusive wellbeing policies. A proactive approach helps maintain productivity and retain experienced staff.

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