Employment Disputes in Guernsey: Emerging Risks for Employers in 2025

Guernsey has historically maintained a relatively light-touch employment law regime compared with some larger jurisdictions, but the legal environment is changing. Recent legislative reforms, shifting working practices, and increasing scrutiny of discrimination, flexibility and settlement terms mean that employment-related disputes are now more likely and more complex. This indicates that employers must adapt, and quickly.

The Legal Framework

At the core of Guernsey’s employment law regime is the Employment Protection (Guernsey) Law, 1998, which provides protections such as unfair dismissal rights. 

Complementing that are:

• Minimum Wage (Guernsey) Law, 2009

• The Sex Discrimination (Employment) (Guernsey) Ordinance, 2005

• Prevention of Discrimination (Guernsey) Ordinance, 2022 
• Other key laws such as the Conditions of Employment (Guernsey) Law, 1985 and various statutory rights for leave, etc.

The Employment & Discrimination Tribunal handles statutory complaints (e.g. complaints of unfair dismissal and/or discrimination) and the Employment & Equal Opportunities Service (EEOS) offers conciliation services. Jurisdictional issues (such as whether someone “ordinarily works in Guernsey”) require careful consideration. 

It is essential that employers ensure they have up-to-date employment contracts, grievance and disciplinary procedures, and that they recognise the difference between internal contractual (court) claims and statutory tribunal claims.

Key Risk Areas in 2025 

1. Non-Disclosure / Settlement Agreements – A Changing Landscape

Recent developments in England & Wales have introduced significant reform of NDAs (and settlement agreements). While the reforms currently apply in England & Wales, they signal a broader international trend which may influence settlement practice in Guernsey (especially where entities or individuals operate across jurisdictions).

• From 1 October 2025 the Victims and Prisoners Act 2024 brings into force changes to NDAs such that confidentiality clauses are void to the extent they prevent “permitted disclosures” by victims of crime to law enforcement, regulators or legal advisers. 
• Separately the UK government has announced its intention to table amendments to the Employment Rights Bill to ban NDAs being used to silence victims of harassment or discrimination. This means that confidentiality clauses in settlement agreements of that nature would be null and void. 

Implications for Guernsey employers and advisers:

• Settlement agreements / compromise agreements involving Guernsey employment law should be reviewed to ensure confidentiality clauses do not over-reach, particularly if cross-border or UK elements are present.
• Employers should draft exit/settlement agreements with clear carve-outs for disclosures to regulators, legal advisors, law enforcement, even if Guernsey law does not yet mirror the UK reforms exactly.
• Employers should consider whether entirely silencing clauses are prudent given the global momentum (and reputational risk) toward transparency in misconduct/harassment situations.
• Employers (or their legal advisors) should monitor whether Guernsey itself adopts similar reforms or guidance in respect of NDAs/settlement agreements, and adapt accordingly.

2. Age Discrimination and the Next Phase of Guernsey’s Anti-Discrimination Law

While Guernsey prohibits discrimination on five grounds (race, disability, career status, sexual orientation and religion or belief), age is not yet a protected characteristic in Guernsey. However, it is expected to be introduced in 2027.

• The Committee for Employment & Social Security (ESS) has proposed introducing age as a protected ground (in addition to phase two of the Ordinance) and published a policy letter in March 2025 setting out the proposals. 
• Once age protection is introduced, differential treatment based on age will (subject to any permitted objective justification) be actionable in employment, provision of goods/services, accommodation, education and club membership. 

Implications for employers and advisers:

• Employers should proactively review hiring, promotion, redundancy and pension policies, identify any age-based differential treatment (e.g. older/younger employees) and assess whether such differences could be justifiable.
• Contract clauses or policies requiring mandatory retirement ages may become legally risky once age discrimination protection is introduced. 
• Training for management on age-related bias, ageism in the workplace, and ensuring neutrality across age groups will be important.

3. Other Key Risk Areas

• Unfair/Constructive Dismissal: Employers must ensure fair process, meaningful written reasons, and valid grounds for dismissal (where applicable).
• Remote/Hybrid Work & Jurisdiction: With more cross-border and hybrid working arrangements, questions about where an employee “ordinarily works” can affect jurisdiction and eligibility to bring a claim. Employers should define the place of work clearly in employment contracts and review the risk profile of remote workers, especially where regulatory or data protection issues may also arise.
• ADR & Early Resolution: Internal grievance mechanisms, early mediation/conciliation, and proactive dispute-resolution policies can reduce costs and reputational damage.

Practical Checklist for Employers and Advisers

• Review contracts & settlement templates – ensure confidentiality/settlement clauses are crafted with an eye to evolving international standards (e.g. UK NDA reform), and carve-outs for disclosures to regulators/law enforcement are explicit.
• Update policies for impending age discrimination protection – review age-based benefits, retirement age provisions, career progression and redundancy criteria; ensure objective justification exists for any age-linked treatment.
• Training & awareness – train HR/management on recognising discrimination (including age), harassment, grievance handling, remote/hybrid work issues.
• Robust grievance/discipline procedures – internal mechanisms should be clear, fair, documented; escalate early to avoid tribunal claims.
• Exit/settlement strategy – early consideration of settlement vs tribunal; ensure exit agreements are carefully drafted with global context in mind.
• Remote/hybrid working clarity – define place of work, jurisdiction, working hours, applicable law; review whether “ordinarily works in Guernsey” remains satisfied; guard against mis-classification and subtraction of statutory eligibility.
• Monitor legislative & case-law developments – track progress of Guernsey’s age discrimination introduction, UK reforms to NDAs, and emerging tribunal decisions in Guernsey/Channel Islands.

Looking Ahead

Employment and workplace disputes in Guernsey are poised to become more frequent and more nuanced. The confluence of expanded discrimination protections (age), shifting settlement/exit agreement practices (including NDA reform in the UK) and evolving working models (remote/hybrid) means that employers must act now, not just when a claim arises.

By adopting a strategic, proactive approach, Guernsey businesses can reduce the cost, disruption and reputational risk of employment disputes and position themselves as fair, modern employers in a changing landscape.