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
Abby’s Takeaways from London Tech Week

Abby’s Takeaways from London Tech Week

Last month, I had the pleasure of attending London Tech Week. I really felt it should have been called UK Tech Week to represent the huge amount of talented Tech organisations flourishing across the country. With over 6000 in attendance, it was great to be in a room with so many like-minded tech enthusiasts.   […]
4 Eating Habits of Highly Successful People

4 Eating Habits of Highly Successful People

What do the world’s most successful people eat on a day to day basis?   Food is fuel, and these leaders make a point of choosing what they eat wisely.   Here are the eating habits of some highly successful people:   Being Predictable 💡 Many leaders are famous for being highly predictable in when […]
C-Suite positions are rarely advertised. Here’s why and how you can win them.

C-Suite positions are rarely advertised. Here’s why and how you can win them.

Have you ever wondered why you hardly see job adverts for top-level executive positions?   It’s not just because these roles require a very specific set of skills and experience; there are several pretty good reasons behind it.   Let’s discuss and uncover how you can get onto the path to the C-Suite.   Why […]
Benefits of Hiring Temps During Uncertain Times

Benefits of Hiring Temps During Uncertain Times

When times look rough, it is often helpful to look back for guidance.   In the past few years there has been a major battle for talent. With the post pandemic boom, many experienced exponential growth, which warranted the extra headcount. However, as things settle and in some cases, go backward, we are seeing a […]
5 Practical Ways to Beat Imposter Syndrome in 2024

5 Practical Ways to Beat Imposter Syndrome in 2024

How many times have you recently felt that you have lost your career edge? Do you feel like others are more confident and overtaking you to achieve greater success? You are not alone; self-doubt has crept in, and we’re here to help you banish it!   As experienced recruitment specialists, we understand that individuals often […]
4 Leadership Skills That Will Set You Apart in 2025

4 Leadership Skills That Will Set You Apart in 2025

4 Top Leadership Competencies That Will Set You Apart in 2025 Are you aiming to take on a leadership role in 2025? You’re in the right place, we are here to tell you about the top leadership competencies for 2025. With industries transforming rapidly, knowing how to position yourself as a standout leader can feel […]
How getting stage time could boost your career

How getting stage time could boost your career

Do you have insights, experiences, or ideas to share?   Make this the year they are heard! You deserve it, and here’s the big bonus – getting stage time can seriously boost your career.   Now, if the idea of standing up and speaking in front of a group makes you anxious, just remember that […]
Cracking the C-Suite Code: Insider Strategies for Professionals

Cracking the C-Suite Code: Insider Strategies for Professionals

Reaching the C-suite is a significant career goal for many experienced professionals. While ambition is key, understanding the unique challenges and opportunities involved can make a substantial difference in your journey.   The #1 Secret to C-Suite Success Unlike roles at lower levels, top executive positions are often filled discreetly. This means that many C-suite […]
6 Meaningful Career Goals for 2023

6 Meaningful Career Goals for 2023

It’s January 2023, a new month, and a fresh new year.   Are you a person who likes to set new year’s goals?   How often do you set career new year’s goals?   Work is such a big part of our lives. Have you taken time out to reflect on your professional life, and […]
UK Labour Market Trends: What you need to know

UK Labour Market Trends: What you need to know

Overview of the Current Labour Market The UK labour market is experiencing a notable shift. While still robust compared to pre-pandemic levels, job vacancies and employment are declining. This cooling trend, evident in recent ONS data, signifies a changing landscape for employers and job seekers.   Employment and Unemployment Trends The employment rate declined to […]

People. Culture. Growth.