On February 5, 2015, a UK court ruled that embassies are not immune from employment lawsuits, allowing workers to sue for alleged discrimination and low pay. While the decision specifically affected cases at the Sudanese, Libyan, and Saudi embassies, it has broader implications for all embassies, including the British Embassy, by reinforcing legal avenues for workers to challenge poor labor practices.

A Human Rights Watch report published on 2014-03-31 reveals that the British Embassy’s practice of outsourcing visa issuance to private contractors has led to inadequate safeguards for migrant domestic workers. The report details that visa applicants are not individually interviewed by embassy staff, resulting in insufficient briefing about their rights and exposure to exploitative labor practices, including passport retention and restricted mobility.

The Financial Times reported on April 13, 2007 that Britain’s embassy in Washington is at the center of accusations regarding breaches of international law over labour rights affecting over 600 workers. The dispute highlights serious concerns about the Embassy's labor practices.

A labor dispute at the British Embassy escalated following a 25-page complaint filed with the International Labor Organization by a labor union. The union challenged changes to salaries and benefits for approximately 630 employees, while embassy officials, emphasizing adherence to ILO conventions, stated they would address the allegations point by point and rejected automatic union dues deductions. This dispute highlights tensions over union recognition and workers' rights at the embassy.