On Wednesday 25th of March, BPE hosted Wednesday Working Lunch in collaboration with C2S, where we were joined by guest speaker Richard Markey from Lease Electric. Here are the answers to the questions that were raised during the session.
What is the regulation of umbrella companies?
The Act introduces a definition of umbrella companies (via amendments to the Employment Agencies Act), paving the way for future regulation. Umbrella companies will fall under the Employment Agency Standards Inspectorate, providing for tighter regulations akin to agency workers rights. Consultations on the exact changes are ongoing and we expect to hear further news later in 2026, with changes implemented in 2027.
Sexual harassment can be insidious - do you think making it "more visible" will help raise awareness and promote culture change?
I believe it will, however, visibility on its own isn’t enough. If it isn’t backed up by action, it can quickly undermine trust. Culture change really comes from what happens in practice, for example how complaints are handled, how managers respond in the moment, and whether there are real consequences for inappropriate behaviour. That’s what turns awareness into genuine culture change.
How does it work with remote workers in relation to the establishment test for collective redundancy?
There is limited guidance or case law on this point. One EAT decision suggests that remote field-based sales staff should be assigned to their local branch. However, some commentary indicates that remote or home workers could instead be treated as a separate “establishment” in their own right. Both approaches are open to challenge, so the position is likely to be fact-specific and potentially contentious.
Regarding 6 months unfair dismissal... can you contractually still have a 6-month probation period with right to extend by up to 3 months?
You can, however the individual would automatically gain unfair dismissal rights after 6 months, irrespective of the extended probation period. If ultimately you were to dismiss after the extended probation period, you would then need to ensure that a fair dismissal process has been followed which would likely need to be over and above a simple failed probationary meeting.
Is salary sacrifice only worthwhile for EVs, or can it work for non-EVs too?
Whilst you can salary sacrifice both EVs and non-EVs (including petrol, diesel, and hybrids), the key difference, to consider is how they are taxed.
Electric vehicles benefit from very low Benefit-in-Kind (BIK) tax rates (currently set at 4% for 2026/27, increasing to just 9% in 2029/2030) , which means the benefit-in-kind you pay is minimal. Combined with lower first-year Vehicle Excise Duty (VED) rates, just £10 for an EV and income tax and National Insurance savings, this usually makes EV salary sacrifice schemes very cost-effective.
Non-EVs, on the other hand, have much higher Benefit-in-kind rates based on their CO₂ emissions, ranging from 15% up to 37% in 2026/27. Coupled with higher first-year Vehicle Excise Duty (VED) rates and the expensive vehicle supplement thresholds set at just £40,000 for petrol or diesel vehicles. It is important to be aware that vehicles with a CO2 emission of 75g/km and above are subject to the Optional Remuneration Arrangement (OpRA) so they are taxed on the P11D value or the cash equivalent whichever is higher.
These taxes can significantly increase the overall tax you will pay and can reduce, or even eliminate, the financial benefits of salary sacrifice.
Other incentives also make choosing an EV through salary sacrifice more cost-effective. The higher Expensive Car Supplement threshold (£50,000 for EVs) makes selecting an EV under this value more affordable. The Government’s electric car grant can reduce the cost of popular EVs by up to £3,500, while manufacturers regularly offer discounts and enhanced deals to help meet their annual EV targets.
In addition, some charging tariffs can lower running costs to as little as 2–3p per mile, compared to around 13–17p per mile for petrol or diesel vehicles. EVs also typically benefit from lower servicing and maintenance costs, further improving overall affordability.
To stay in touch...
Thank you for joining us on the 25th of March, and thank you to C2S and Lease Electric for collaborating with us on this event.
The next instalment of C2S: HR Focus will be at Randall & Payne on the 22nd of April 2026. Click HERE to book your space.
If you would like to talk to one of BPE's Employment team regarding any of the questions in this article, please get in touch by clicking here.
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