Budget 2024 + Employment Law Reforms: The Headlines
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Budget 2024 + Employment Law Reforms: The Headlines

The recent budget announcement and employment law reforms 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 […]

November 4th, 2024
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Abby.

Founder

A search expert making key hires for over twenty years.

The recent budget announcement and employment law reforms 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 Employment Law reform 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 employment law reforms 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 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.
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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.
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