Due to the change of government in July 2024, it’s easy to be confused about legislation changes this year. We’ve looked at the details for you, so here’s a rundown of the changes.

National Minimum Wage rates

The National Minimum Wage/living rates are going up on 1 April 2025. If your pay is based on minimum wage rates per hour, you will need to implement these changes:

 

Age group	Up to 31/3/2025	From 1/4/2025
21 and over	£11.44	£12.21
18 – 20	£8.60	£10
Apprentices under 19 (or over 19 but in year 1 of apprenticeship) and under 18s	£6.40	£7.55

Statutory pay rates – From April 2025

Family friendly leave

The rates of Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £187.18 per week.

Statutory Sick pay

The rate of Statutory Sick Pay will increase to £118.75 per week.

Statutory redundancy payments

With effect from 6th April 2025, the statutory redundancy pay cap will increase to £719 per week. It’s important to ensure you get up to date compensation information for anyone who leaves due to redundancy on or after this date. You will need to calculate their redundancy pay on the new rate.  If the redundant employee’s normal weekly rate is under the new figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Statutory Neonatal Care Leave

This statutory leave will allow parents whose babies need hospital neonatal care to take up to 12 weeks’ paid leave, with one full week available for each full week the baby receives neonatal care. This is in addition to their statutory maternity, shared parental or paternity leave. The right will:

• be available from day one of employment
• apply to parents with babies who are admitted to hospital before they are 28 days old and
• apply to babies who need to stay in hospital for 7 days continuously or more.

Leave must be taken within 68 weeks of the baby’s birth, or placement in the case of adoption

Neonatal Care pay will only be available for employees who have 26 weeks of continuous service and who meet the minimum earnings threshold (£125 per week).

This entitlement will be effective from 6^th April 2025.

Employer National Insurance increase

National Insurance Contributions (NIC) rates for employers increase from 13.8% to 15%. In addition, the threshold at which employers start paying NICs will decrease from £9,100 to £5,000 of an employee’s annual salary / wage. This means an additional £4,100 of each employee’s earnings will be subject to Employer NICs. The net result of this will be that more lower paid employees will be subject to Employer NICs.

This change is effective from 6^th April 2025.

Upcoming changes to be confirmed

Pension Scheme Bill

In November 2024, the Government announced it will introduce a new Pension Scheme Bill in 2025. The Bill is expected to include:

• Automatic consolidation of small, deferred pension pots
• A value-for-money framework for Defined Contribution (DC) schemes
• A requirement for occupational DC schemes to offer tailored retirement income solutions
• A commercial Defined Benefit superfund to enhance financial security for its members

It’s expected that a pension dashboard will be introduced in 2025, which will allow people to view all of their pension savings (including state pensions) on one platform. The aim of this is to improve transparency and enable people to have more control of their retirement planning.

Paternity (bereavement) leave

This new right will be a day-one right. The 26-week minimum service requirement for paternity leave will not apply for fathers and partners where the mother has died in the first year after birth or adoption. This also applies to a bereaved parent of an adopted child, or intended parent of a child born through a surrogacy arrangement. In addition:

• These bereaved parents will also be able to take paternity leave
• Where the child also dies (or is returned after adoption) the employee can still take leave

There are also plans for paternity leave to be extended to 52 weeks for these bereaved partners. It is unclear whether the day one right to paternity leave in this situation will extend to paternity pay.

Trade union reforms

Some of the trade union reforms contained in the Employment Rights Bill are expected to come into force in 2025 – removing the following requirements which were introduced by the previous government:

• The minimum service level requirements for certain sectors
• The information and turnout requirements for ballots

The Employment Rights Bill – progress

In line with the plans unveiled in the government’s Employment Rights Bill, future legislation changes have been laid out in general terms and are detailed below. In most cases the date of implementation is to be confirmed, unless stated otherwise.

NB The government have confirmed they do NOT intend to introduce a right to disconnect under the Employment Rights Bill, but it may be implemented under a ‘code of practice’ at some point in the future.

The list of forthcoming legislation changes below includes legislative and non-legislative changes planned.

Unfair dismissal

The two-year unfair dismissal qualifying period will be removed, and be replaced with a new statutory probationary period, referred to as the ‘initial period of employment’ in the bill. The length of this period is yet to be confirmed but is likely to be up to nine months.

Unlikely to be effective before Autumn 2026.

Trade union rights

Consultation has concluded and it’s been confirmed that the process and transparency around trade union recognition will be improved. There will be a new duty on employers to inform workers of their right to join a trade union.

The bill will also simplify information requirements on ballots for industrial action and extend the expiry of a mandate for industrial action from 6 to 12 months.

A further amendment will repeal the 50% industrial action ballot threshold (on a date to be specified in regulations).

Sick pay

There will be a right to Statutory Sick Pay (SSP) from day one of illness absence, removing what are referred to as the three ‘waiting days’. The requirement for employees to meet or exceed the Lower Earnings Limit (£125 from 1/6/25) will be removed.

Low earners, including those currently paid under the LEL will be eligible for SSP at a rate of 80% of their normal weekly earnings, if less than the flat rate of SSP.

Fire and rehire

Employers’ ability to use fire and rehire will be restricted due to a change to the laws on unfair dismissal. Where employers fail to agree a change to a contract of employment and a ‘fire and rehire’ process is initiated, the dismissals will be treated as automatically unfair unless the employer can show evidence of financial difficulties, and demonstrate that the need to make the change in contractual terms was unavoidable.

In addition, in January 2025 tribunals were able to apply up to a 25% uplift to compensation where the ‘fire and rehire’ process lead to proven unfair dismissal, IF the employer didn’t follow the Code of practice on dismissal and re-engagement, issued by the Secretary of State.

Redundancy collective consultation

Employers will no longer be able to treat redundancies at different locations as completely separate for the purposes of the thresholds for collective consultations. Collective consultation will be required if there are 20 or more redundancies at one establishment, OR where redundancies are being made across the employer as a whole, if a different threshold (to be confirmed) is reached. This new threshold for across the employer as a whole could be a fixed number, or a percentage of the workforce. This is a change to the original proposal.

The maximum protective award will be increased where an employer has failed to comply with collective consultation requirements. Specifics to be confirmed.

Employees who bring a claim for the protective award will also be able claim interim relief via the employment tribunal, and the government is proposing to increase the cap on Protective Awards in collective redundancy situations to 180 days (increased from 90 days) to encourage employer compliance.

Agency and Zero-hours workers

Agency workers will have the right to a guaranteed hours contract to reflect the hours they regularly work. This is likely to be across a set reference period. In addition, agency workers and zero hours contract workers will be given a right to reasonable notice of changes to shifts or working hours. There will be however the possibility of excluding those rights via a collective agreement.

Workers will also have a right to compensation that is proportionate to the notice given for any shifts that are cancelled or curtailed.

The details will be set out in regulations, and subject to consultation.

Flexible working

Flexible working will be the default day-one right, apart from when it is not reasonably feasible. If the employer believes it’s not reasonably feasible, the current eight reasons for refusing the request for flexibility will remain. Employers must explain the reason for a refusal, or why the refusal is considered reasonable, in writing to the employee.

Family leave returners

Forthcoming legislation will make it unlawful to dismiss a woman, while pregnant, and / or on maternity leave, and within six months of returning to work (with some exceptions to be confirmed).

Existing powers are to be strengthened in relation to dismissal in the period a person returns to work from adoption leave, shared parental leave, neonatal care leave and bereaved partners paternity leave, details to be confirmed.

Paternity and Parental leave

Statutory parental leave (unpaid) allowing parents to take 18 weeks of unpaid leave during the first 18 years of their child’s life) will become a day-one right, removing the requirement for one year’s continuous employment.

Statutory Paternity Leave will be a day-one right, removing the requirement for 26 weeks continuous employment.

Miscarriage bereavement leave

Mothers and their partners will be entitled to two weeks’ bereavement leave if they suffer a pregnancy loss before 24 weeks. This extends the current entitlement which applies only if a child dies or is stillborn after 24 weeks of pregnancy.

Harassment

There will be a new provision requiring employers not to permit harassment of employees by a third party.  In addition, employers must take ALL reasonable steps to prevent sexual harassment. This enhances the recent changes in October 2024.

Bereavement

There will be a day-one right to at least one week’s bereavement leave for employees. The circumstances under which this right can be exercised will be confirmed.

Fair Work Agency

A new enforcement body, the Fair Work Agency (FWA) will combine multiple existing agencies, in a single body to enforce employment rights. This will offer a single place where workers can seek help. This body will also be able to bring a claim to an employment tribunal in place of a worker if the worker decides not to pursue a claim. Details of how this would work are to be confirmed.

Tribunals

The time limit for bringing a tribunal claim will increase from three to six months.

Paid carer’s leave

The government confirmed it will review the current statutory Carer’s Leave entitlement, including the benefits of introducing paid carers leave. This review is one of the government’s longer-term delivery reforms.

National Living Wage

The government plan to update the National Living Wage to account for the cost of living, and remove the lower 18-20-year-old age bracket. This is part of a plan to move towards a ‘single adult rate’.

If you’re concerned about what these employment legislation changes from April 2025 mean for your business, please get in touch.

As we move into 2025, UK employers face a shifting economic landscape, alongside new regulations and policies set to shape the workplace. Following the Autumn Statement by Chancellor Rachel Reeves and the upcoming Employment Rights Bill, it’s crucial for businesses to prepare for these changes. Here are the key priorities for UK employers in 2025, and what they should focus on:

Prepare for changes in employment rights

The new Employment Rights Bill will introduce significant changes that affect how businesses manage their workforce. Some key provisions include:

• Stronger protections for workers. Expect changes to enhance job security and workplace conditions, including clearer and more stringent rules around unfair dismissal claims and redundancy.
• Extended sick leave and pay. The bill may introduce more generous sick pay entitlements, so employers should review their current sick leave policies.
• Flexible working. Employers must prepare for increased demand for flexible working options, with new rights potentially making it easier for employees to request remote work or flexible hours.
• Non-compete clauses. New rules could impact the enforceability of restrictive covenants, requiring employers to reassess their contracts and policies.

Address the cost of living crisis

The UK economy is still grappling with the effects of inflation, with many workers facing rising living costs. Employers should:

• Offer competitive wages. The government is under pressure to address wage stagnation. Companies should ensure they are offering competitive salaries, or consider cost-of-living adjustments for employees.
• Support staff wellbeing. Mental health and employee wellbeing are becoming a priority for businesses. Employers can consider offering wellness programs or increasing access to mental health support.
• Consider benefits packages. Reevaluate your benefits offerings, such as bonuses, retirement plans, and other perks, to ensure they remain attractive to current and potential employees.

Be ready for economic uncertainty

The UK economy remains uncertain, with global inflation, energy prices, and post-Brexit changes creating challenges. Employers should:

• Plan for economic fluctuations. Create flexible business plans that can be adapted if the economy worsens. This might include managing cash flow more conservatively, reducing unnecessary overheads, or diversifying your revenue streams.
• Focus on business resilience. Build resilience by strengthening your supply chains, diversifying talent pools, and reducing dependence on any one market or sector.
• Engage in strategic forecasting. Regularly monitor economic trends, political developments, and changes in consumer behavior to stay ahead of potential disruptions.

Prepare for more scrutiny around workplace culture

As public and government expectations evolve, businesses are under greater scrutiny about their workplace cultures. Employers should:

• Promote diversity and inclusion. Demonstrating a commitment to diversity and inclusion isn’t just good for business; it’s becoming a regulatory and ethical necessity. Make sure your company policies reflect these values and are communicated effectively.
• Strengthen employee engagement. Engage with employees to understand their needs, concerns, and aspirations. Companies with strong employee engagement are more likely to thrive during economic challenges.

Workforce optimisation

For many organisations, optimising staffing levels will be top of the agenda in 2025. For some, the focus will centre on attracting new talent to support organisational growth plans and address skills shortages. This will involve improving recruitment processes, methods and channels. Meanwhile, other organisations will focus on recalibrating their workforce through restructures to align with changing business needs or to reduce costs. Whether hiring or resizing, employers need to ensure that workforce planning supports long-term organisational objectives.

Focus on skills and training for the future

The UK’s skills gap is a persistent challenge, and the government has indicated a focus on improving workforce skills. Employers should:

• Invest in training programs. Upskilling your employees will be crucial in 2025. Offering continuous professional development (CPD) opportunities can improve staff retention and fill gaps in essential skills.
• Support apprenticeships. In line with government priorities, consider investing in apprenticeship schemes to build a pipeline of skilled workers while supporting the broader economy.

Ensure fair pay and pay transparency

Pay transparency and fairness are expected to be high on the government’s agenda in 2025. Employers should:

• Review pay structures. Conduct pay audits to ensure equal pay for equal work, especially for gender, ethnicity, and other underrepresented groups.
• Prepare for potential reporting requirements for employers with 250 or more employees. The government may introduce pay transparency measures, be ready to disclose pay gaps and ensure your organisation is ahead of the curve.
• Be proactive on diversity and inclusion. In 2025, businesses will be under increased pressure to ensure their recruitment, promotion, and compensation practices are equitable and transparent.

Adapt to new workplace technologies

The future of work is digital, and the UK government is investing heavily in technology. Employers need to:

• Invest in digital skills. Employees will need new tech skills as automation, AI, and digital platforms become more common in the workplace. Provide upskilling opportunities, especially for employees in roles that could be affected by technology.
• Update IT infrastructure. Ensure your business has the digital tools necessary for remote working, cybersecurity, and effective collaboration. Consider investing in cloud solutions and cybersecurity measures to protect sensitive data.
• Leverage automation. Review areas where technology can automate repetitive tasks, improving efficiency and allowing employees to focus on higher-value activities.

 

In 2025, UK employers will face a rapidly changing landscape of regulatory and economic challenges. By focusing on these priorities businesses will be better positioned to thrive in the evolving economy. Staying ahead of these trends and taking proactive measures will help you create a strong, resilient, and future-proof business. If you need any support or advice in any of these areas, please get in touch.

It’s that time of year when we consider forthcoming employment legislation changes from April 2024. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes.

Payroll costs – National Minimum Wage rates

Inflation continues to be a key issue for many employers who are facing pressure to increase wages.  Whilst there is no legal requirement to increase pay to address issues with high inflation rates, the National Minimum Wage/living rates are going up on 1 April 2024, therefore if your pay is based on minimum wage rates per hour, you will need to implement these changes:

 

Age group	Up to 31/3/2024	From 1/4/2024
21 and over	£10.18 (£10.42 for 23+)	£11.44
18 – 20	£7.49	£8.60
Apprentices under 19 (or over 19 but in year 1 of apprenticeship) and under 18s	£5.28	£6.40

Statutory pay rates – From April 2024

Family friendly leave

The rates of Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £184.03 per week.

Statutory Sick pay

The rate of Statutory Sick Pay will increase to £116.75 per week.

Statutory redundancy payments

With effect from 6th April 2024, the statutory redundancy pay cap will increase to £700 per week. It’s important to ensure you get up to date compensation information for anyone who leaves due to redundancy on or after this date. You will need to calculate their redundancy pay on the new rate.  If the redundant employee’s normal weekly rate is under the new figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Rolled-up holiday pay

With effect from the holiday year starting in April 2024 and thereafter, workers who work irregular or part year hours can have their holiday pay rolled in to their pay, rather than accruing actual holiday which has to be taken as leave.  The method of calculating the holiday pay will be 12.07%. Employers should note this only applies to those employees who work irregular or part-year hours. Other employees with set hours (either part or full-time) will accrue paid holiday which must be taken as paid time off.

Flexible Working Requests

With effect from 6th April 2024, employees will be able to make a flexible working request from day one of their employment, removing the current 26 weeks’ service requirement.  Employees will be able to make two requests a year (currently only one request is possible) and they will no longer be required to set out the likely effects on the business of the change.  Employers will be compelled to consult with the employee before rejecting a request and the time allowed for the whole process, including appeal, will be reduced from three to two months.

Statutory Carer’s Leave

Statutory Carer’s Leave will give carers a minimum of one week’s unpaid leave per year to care for a dependant with a long-term care needs, from day one of their employment.

This will be a day one right for employees and is flexible, however it’s likely advance notice will need to be provided, and it may be possible to postpone requests in a similar way to Unpaid Parental Leave.

This right will be in place from 6th April 2024.

Paternity Leave

An amendment to the entitlement for fathers and partners to take Paternity Leave has recently been proposed.  If approved fathers and partners will be able to take their Paternity Leave in two split weeks, should they wish, and the timeframe for taking the leave will be extended from 56 days after the birth, to 12 months after the birth, offering more flexibility to new parents.

This amendment will be effective for babies born or children adopted on or after 6th April 2024.

Redundancy Protection for Pregnancy and Family Leave

This protection extends the right to be redeployed during pregnancy (including if a miscarriage is suffered), maternity and family leave for 18 months after the start of that leave. These are important considerations during an employee’s family/maternity leave and in restructuring or redundancy exercises.  Employers who breach this protection will risk claims for unfair dismissal and sex discrimination (with uncapped compensation).

This new protection will be in place from April 2024.

Upcoming changes to be confirmed

2024 is potentially going to be another busy year for changes in employment law.  This is a summary of what may be in the pipeline when it comes to employment legislation changes from April 2024.  In some cases there are no firm dates for implementation however, it pays to be ahead of the changes and consider how they may affect you and your business in advance of the bills being passed in to law.

Employment Allocation of Tips Act

This ban will make it unlawful for employers to withhold tips from staff.  In addition, employers must also have a written policy related to tip allocation in place.  This will apply to tips, gratuities and service charges given during the previous month.

This is expected to be in place from July 2024.

Statutory Neonatal Care Leave

This statutory leave will allow parents whose babies need hospital neonatal care to take 12 weeks’ paid leave. This is in addition to their statutory maternity, shared parental or paternity leave. The right will:

• be available from day one of employment;
• apply to parents with babies who are admitted to hospital before they are 28 days old;
• apply to babies who need to stay in hospital for 7 days continuously or more.

This is expected to be in place from April 2025.

Right to request more predictable working patterns

Employees and workers (including agency and zero hours workers) will have the right to formally request a more stable working pattern.  In addition, this right will also be available to those on fixed-term contracts of less than a year.  This right will apply after 26 weeks of continuous employment.

Employers will only be able to refuse requests  if there is a legal reason for refusing the request.

This is expected to be in place ‘in due course’.

Proactive duty to prevent sexual harassment

This will require employers to have proactive measures in place to prevent sexual harassment in the workplace.  As a result employers will be legally responsible if no measures are in place.  And that responsibility applies, regardless of whether or not an incident has occurred. Failure to comply with this requirement could result in increased compensation of up to 25%.

This is expected to be in place from October 2024.

Pensions (Extension of Automatic Enrolment) Act 2023

This Act brings in changes to the Automatic Enrolment populations and employers who use Qualifying Earnings to calculate contributions:

• Lowering the age criteria for auto-enrolment from 22 to 18 years of age
• Removing the Lower Earnings Limit of £6,240 if you’re using qualifying earnings

There is no indication at this point when this change will come in to effect.

If you’re concerned about what these employment legislation changes from April 2024 mean for your business and need help reviewing your policies, please get in touch with Helpful HR.

As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2023.

Payroll costs – National Minimum Wage rates

The cost of living increase continues to be a key issue for many employers who are facing pressure to increase wages.

Whilst there is no legal requirement to increase pay to address issues with high inflation rates, the National Minimum Wage/living rates are going up on 1 April 2023, therefore if your pay is based on minimum wage rates, you will need to implement these changes:

Age group​	Up to 31/3/2023	From 1/4/2023	% Increase​
23 and over​	£9.50	£10.42	9.7%
21 or 22​	£9.18	£​10.18	10.9%
18 – 20​	£6.83	£7.49	9.7%
16-17	£4.81	£5.28	9.7%
Apprentices under 19 (or over 19 but in year 1 of apprenticeship​)	£4.381	£5.28	9.7%

Statutory pay rates

Family friendly leave

From 3 April 2023 Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement pay will increase to £172.48 per week.

Statutory Sick pay

On 3 April 2023 Statutory Sick Pay will increase to £109.40 per week.

Statutory redundancy payments

With effect from 6th April 2023, the statutory redundancy pay cap increases to £643 per week, therefore for anyone who leaves due to redundancy on or after this date, you will need to calculate their redundancy pay on this new rate.  If the redundant employee’s normal weekly rate is under this figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Bank holidays – The King’s Coronation

In 2023 there will be an additional Bank Holiday to celebrate the King’s Coronation, on Monday 8th May 2023. This is in addition to the usual May Day Bank Holiday on 1st May, and the Spring Bank Holiday on Monday 29th May 2023.

An employee’s individual contract of employment will dictate whether they are entitled to take this additional day off and how this day’s leave will be treated.  Employers should check the wording in their employees’ contracts, and communicate clearly to employees if they are expected to work on the additional bank holiday, and / or if they need to take it from their annual leave entitlement.

Upcoming changes to be confirmed

2023 is potentially going to be a busy year for changes in employment law, with lots of Bills under consideration.  This is a summary of what may be in the pipeline.  There are no firm dates for implementation, but in the meantime it pays to be ahead of the changes and consider how they may affect you and your business in advance of the bills being passed in to law.

Retained EU Law (Revocation and Reform) Bill

During her brief time as Conservative Prime Minister, Liz Truss expressed the Party’s commitment to change Working Time Regulations’ rules on taking breaks, limiting the 48-hour working week and calculating holiday pay. In addition, the government introduced the Retained EU Law (Revocation and Reform) Bill which, if passed unamended, will remove all UK laws containing EU law by the end of 2023. In addition it will give the government powers to repeal or replace those laws without Parliamentary scrutiny. As well as the working time rules, the TUPE and the agency workers regulations may be at the top of a possible list for reform, due the fact that these laws derive directly from EU regulations.

Anti-strike policies

Conservative proposals for restricting the effect of industrial action were outlined by the the previous Secretary of State for Transport, Grant Shapps in July 2022. Consequently, some anti-strike measures are already passing or have passed into law, such as the Strikes (Minimum Service Levels) Bill and Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022 which allow organisations to use agency workers to cover striking workers.

However, the Regulatory Policy Committee have stated the Strikes Bill is ‘not fit for purpose’ and subsequently have suggested another impact assessment is needed. In addition, the TUC has mounted a legal challenge to the agency worker rule change, which is due to be heard in March 2023.

The Carer’s Leave Bill

The Carer’s Leave Bill will give carers one week’s unpaid leave a year to care for a dependant with a long-term care need that is:

• likely to last more than three months;
• is a disability under the Equality Act 2010; and/or
• connected to old age.

This will be a day one right for employees.

Many organisations already support carers and have policies in place, however this will involve changes to flexible working policies and practices, therefore communicating any changes relating to flexible working requests and requests for carer leave to managers will be very important, to ensure any speculative enquiries are dealt with appropriately.

The Protection from Redundancy (Pregnancy and Family Leave) Bill 

This bill extends the right to be redeployed during pregnancy (including miscarriage), maternity and family leave for 18 months after the start of that leave. These are important considerations that will have to be managed during an employee’s family/maternity leave and in restructuring or redundancy exercises.

Neonatal Care (Leave and Pay) Bill

The Neonatal Care (Leave and Pay) Bill will allow parents whose babies need hospital neonatal care to take 12 weeks’ paid leave in addition to their statutory maternity or paternity leave. The right will:

• be available from day one of employment;
• apply to parents with babies who are admitted to hospital before they are 28 days old;
• apply to babies who need to stay in hospital for 7 days continuously or more.

Employment (Allocation of Tips) Bill

This bill will make it unlawful for employers to withhold tips from staff.  A new statutory Code of Practice on how tips should be distributed will be developed, and in addition workers will gain a new right to request information on an employer’s tipping record to help them to bring a tribunal claim under the new rules.

Employment Relations (Flexible Working) Bill

This new legislation would:

• make flexible working requests a day one right for employees (thereby removing the current 26 weeks’ service requirement)
• allow employees to make two requests a year (currently only one request is possible)
• require employers to consult with the employee, before rejecting a request
• shorten the time employers have to reply to a request from three to two months
• remove the requirement for employees to set out the likely effects on the business of the change.

Workers (Predictable Terms and Conditions) Bill

This bill will give all employees and workers (including agency and zero hours workers) the right to formally request a more stable working pattern and will be available to those who:

• have worked for the employer for 26 weeks (not necessarily continuously)
• are on work patterns that lack certainty in the hours and time they work
• are on fixed term contracts under 12 months’ in duration.

Workers will be able to make two requests a year, however employers will be able to refuse requests on specific grounds, e.g. due to the additional costs involved or a lack of work at the times requested.  This reform is intended to rectify one-sided flexibility favouring employers to the detriment of workers.

Office of the Whistleblower

A Bill on whistleblowing could, if passed, repeal the current framework in the Public Interest Disclosure Act 1998 and introduce broader protection with a bigger range of penalties. The bill involves the creation of a new body, potentially called the Office of the Whistleblower, which would be given investigation powers and have the authority to order redress.

Auto-Enrolment Pension Changes 

There is an Automatic Enrolment Private Members Bill moving through Parliament which looks set to bring in changes to the Automatic Enrolment populations and employers who use Qualifying Earnings to calculate contributions:

• Lowering the age criteria for auto-enrolment from 22 to 18 years of age
• Removing the Lower Earnings Limit of £6,240 if you’re using qualifying earnings

Predictions are that this particular change will come in to effect either in April 2024, or at the earliest in October 2023.

And….

The government is also backing the Worker Protection (Amendment of Equality Act 2010) Bill currently passing through Parliament, which would cover the following:

• reintroducing employers’ liability for the harassment of their staff by third-parties (whether they are customers, clients, or suppliers). This liability was previously removed in 2013;
• requiring employers to proactively prevent the sexual harassment of their staff;
• allowing for a 25% uplift in any award in a successful sexual harassment tribunal claim where the employer failed to prevent the harassment occurring.

If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.

 

 

As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2022.

Gender pay gap reporting

For businesses in the private sector with a headcount of 250 or more, your ‘snapshot’  gender pay gap reporting is due to be published on or before 4^th April 2022.  The information about what you need to report can be found here.

There is currently speculation about the introduction of new ethnicity pay gap reporting, but there are no clear plans to introduce that requirement.

Payroll costs – National Minimum Wage rates

The cost of living increase is likely to be a key issue for many employers who will face increasing pressure from employees to increase wages.

Whilst there is no legal requirement to increase pay to address issues with increases in inflation rates, National Minimum Wage/living rates are going up on 1 April 2022 so if your pay is based on minimum wage rates, you will need to implement these changes:

Age group​	Up to 31/3/2022	From 1/4/2022	% Increase​
23 and over​	£8.91​	£9.50​	6.62​
21 or 22​	£8.36​	£9.18​	9.81​
18 – 20​	£6.56​	£6.83​	4.12​
Under 18 (but above compulsory school age​)	£4.62​	£4.81​	4.11​
Apprentices under 19 (or over 19 but in year 1 of apprenticeship​)	£4.30​	£4.81​	11.86​

Health and Social Care Levy – 6 April 2022

The UK is introducing a new social care levy  from 6 April 2022 to help fund health and social care. This will be collected via a 1.25% increase in National Insurance rates for employers and employees in 2022.

People above State Pension age will not be affected by the temporary increase to National Insurance contributions for the 2022 to 2023 tax year, but will be liable to pay the levy from April 2023.

Statutory pay rates

Family friendly leave

From 3 April 2022 Statutory Maternity, Adoption,  Paternity, Shared Parental and parental bereavement pay will increase to £156.66 per week.

Statutory Sick pay

On 6 April 2022 Statutory Sick Pay will increase to £99.35 per week.

Statutory redundancy payments

For anyone made redundant on or after 6^th April 2022, the statutory redundancy pay weekly pay rate increases to £571, therefore for anyone who leaves due to redundancy on or after 6^th April 2022 you will need to base their redundancy pay on this new weekly cap.  If the redundant employee’s normal weekly rate is under this figure, you should calculate their redundancy compensation based on their actual weekly pay rate.

Right to work checks

Although the concept of right to work checks is not new, there are changes to be aware of which come in to effect from 6th April 2022.  Full guidance is here

Key changes include:

• implementation of a new Identity Document Validation Technology (IDVT) process,
• changes for those that hold a Biometric Residence Card, Biometric Residence Permit or Frontier Worker Permit.

Bank holidays – The Queen’s Jubilee

In 2022 there will be an additional Bank Holiday to celebrate the Queen’s Platinum Jubilee on Friday 3rd June. The usual late May bank holiday has moved to Thursday 2 June to give workers a four-day weekend.

Individual contracts of employment will dictate whether employees are entitled to take this additional day off, and how this day’s leave will be treated.  Employers should check the wording in contracts and communicate clearly to employees whether they are expected to work on the additional bank holiday, and / or if they need to take it from their annual leave entitlement.

As the Jubilee week is to all intents and purposes a 3-day week and is at school half-term in most places, employers should prepare for a large number of annual leave requests.

If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.