Budget 2024 + UK Employment Law Changes: The Headlines
Hiring

Budget 2024 + UK Employment Law Changes: The Headlines

The recent budget announcement and UK employment law changes sent shockwaves through the business community and dominated headlines. With impending rising costs, increased regulatory burdens, and a changing talent landscape, it’s more important than ever to have a robust HR strategy. As a people business, we understand the challenges you’re facing as you discover this […]

November 4th, 2024
*

Abby.

Founder

A search expert making key hires for over twenty years.

The recent budget announcement and UK employment law changes sent shockwaves through the business community and dominated headlines. With impending rising costs, increased regulatory burdens, and a changing talent landscape, it’s more important than ever to have a robust HR strategy.

As a people business, we understand the challenges you’re facing as you discover this new landscape and want to support you in learning how you may be affected going forward. That’s why we’ve put together this guide to help you navigate these changes and those related to UK employment law changes to protect you and your business.

Let’s work together to ensure your hiring practices are compliant and effective. Our team of expert recruiters are here to guide you through the process, helping you attract and retain top talent while minimising risk. As always get in touch to discuss further.

Budget 2024 was huge for businesses; here are the headline topics you should be aware of.

The biggest change and revenue hike for the government will come from changes to employers’ national insurance contributions (NIC). With effect from April 2025:

  • The rate of employers’ NIC will rise to 15% from the current 13.8%, and the secondary threshold above which employers’ NIC is payable will drop from £9,100 annually to £5,000, potentially subjecting an additional £4,100 to charge at the new higher rate equal to £615 per person.
  • National Living Wage rates announced yesterday, rise from £11.44 to £12.21 for adults aged over 21 from April 2025.
  • An increase in employment allowance from £5,000 to £10,500 from April 2025 insulates smaller employers, those with secondary Class 1 NICs liability of less than £100,000.

Employment Law Reform didn’t see much press but will have a huge impact to business, we spent time reading the 158 pages and there is a lot to know, here are the initial areas that we see important to point leaders to.

  • Reduced Probation Periods – To try to alleviate business concerns, the government’s consultation will include exploring the length of probation periods and measures to support the business and its employees.  The government favours a 9-month probation period, this is a watch-and-wait policy.
  • Sick Pay from Day 1 – Employees will be able to claim SSP from your company at a rate up to £116.75 from the first day of employment for a maximum period of 28 weeks, a total of £3269.
  • Fire & Rehire – Fire and rehire will cease to exist. The Bill will automatically make it unfair to dismiss an employee if the main reason for dismissal is to alter the terms of the contract.
  • Zero-Hour Contract overhaul – Employers will need to offer guaranteed hours to both zero-hours workers and workers on “low” guaranteed hours who regularly work more than those hours.
  • Flexible Working Requests – Employers will only be able to refuse an application if it is “reasonable” to do so and will need to state the facts relied upon and explain why they consider it reasonable to refuse the application on those facts

Read our thoughts here as reported in I News on Budget Day

In conclusion, the recent UK employment law changes have significantly impacted the business landscape and the rising costs to Employers NI risk slowing growth. To navigate these changes successfully, businesses must prioritise a robust hiring strategy, strengthen HR and legal support, and leverage flexible workforce solutions.

By partnering with a reputable recruitment agency like Yellow Bricks, you can ensure that your hiring practices are compliant, efficient, and effective. Our team of experts can help you:

  • Identify, engage and attract the right talent
  • Discover the benefits of Temporary Staff
  • Improve your hiring process
  • Mitigate risks and ensure compliance
  • Optimise your workforce
  • Create bespoke hiring strategies 

Don’t let these UK employment law changes catch you off guard. There is still time to prepare; let’s work together to ensure your business is ahead of the curve. Contact us today for a free consultation to discuss your specific needs and explore how we can help you navigate these challenging times

To find out more about how to focus on your brand, get in touch today.
Want to hear about our other articles?
Looking to hire your next superstar?
Keen to explore our latest vacancies?
Yellow Bricks is a female-owned and led executive search firm hiring predominately for software companies with diversity and inclusion at the heart of our offering. To learn more, click here.
Related posts
8 Steps to Getting Your Career Back on Track

8 Steps to Getting Your Career Back on Track

We know that a lot of the jobs we like the look of online are over applied to, probably phoney, in reality unsuitable, or were filled months ago with no one bothering to take them down.     In some sectors, the hiring markets are weaker than they have been in decades. Trying to navigate […]
Working Parents and Summer Holidays: How to Juggle Work and Family in 2025

Working Parents and Summer Holidays: How to Juggle Work and Family in 2025

School’s out, and for working parents, that often means a full schedule and even fuller hands. Balancing professional responsibilities with childcare can be tough especially during the long summer holidays. At Yellow Bricks, we understand the pressure on parents to be everywhere at once during this time of year. In this blog, we’re sharing strategies, […]
Remote war rages on. What’s your take?

Remote war rages on. What’s your take?

We are currently witnessing a large-scale social experiment unfold:   Can we be just as effective when working from home?   Are we just as engaged, productive, and happy?   The COVID-19 pandemic forced many workplaces to shut their doors entirely, resulting in millions of workers being required to work from home.   Now, three years […]
8 Ways to Keep a Job Search Going Over the Summer

8 Ways to Keep a Job Search Going Over the Summer

Are you seeking a new opportunity this summer? During this time of year, you will want to spend quality time with friends and family. How can you balance work and play effectively when looking for a new role? We share our top 8 tips for keeping a job search going over the summer:   Review […]
Helina’s Takeaways from MADFest, London

Helina’s Takeaways from MADFest, London

Last week, I attended MADFest in Shoreditch, London! 🤩 It was a jam-packed day with many amazing brands and speakers joining together to celebrate the world of advertising and marketing! Being new to marketing, it was invaluable for me to be amongst and hear from many senior and experienced marketers.   Here are some of […]
Wages Rise, but Real Gains Slow: What Does This Mean for Your Workforce?

Wages Rise, but Real Gains Slow: What Does This Mean for Your Workforce?

Wages Rise, but Real Gains Slow: What Does This Mean for Your Workforce? The UK’s economic landscape in 2024 has been marked by significant inflationary pressures. While wages have increased by 4.8%, inflation-adjusted growth has slowed to just 1.9%. Despite nominal pay rises, the rising cost of living continues to erode purchasing power for many […]
AI-generated fake job applications

AI-generated fake job applications

Tackling Fake Applications: Streamlining Your Recruitment Process for Genuine Candidates In today’s fast-paced hiring landscape, the rise of AI-generated fake job applications poses a significant hurdle for recruiters and hiring managers. These fraudulent submissions not only clutter your recruitment process but also drain valuable time and resources that could be directed toward finding genuine candidates. […]
6 Tips for Working In Hot Weather

6 Tips for Working In Hot Weather

As the UK declares a national heatwave emergency with temperatures set to exceed the record set in Cambridge in 2019 of 38.7 degrees, we provide some useful tips for getting through a day of work in the sweltering heat. With the huge rise in people working from home, access to industrial-sized, state-of-the-art air-con units for […]
First Interview Fails: The Mistakes Costing You A-Players

First Interview Fails: The Mistakes Costing You A-Players

How to Make Candidates Feel Valued – From That Crucial First Hello The hiring landscape has shifted. We’re no longer solely in an employer’s market. Savvy candidates have choices, carefully selecting opportunities that align with their career aspirations. This well-needed rebalancing underscores a fundamental truth: the initial interview isn’t just about you evaluating talent; it’s […]
5 Steps to Take Charge of Your Career

5 Steps to Take Charge of Your Career

Did you decide it was time for a new job only to be shocked by how difficult it actually is? Is it time to learn How to Take Control of Your Career Growth in 2025 It’s stressful being on the back foot, panic can lead to bad decisions and before you know it, you have […]

People. Culture. Growth.