Managing collective consultations 

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Collective consultations will be familiar territory for many employers, whether they are seeking to make distinct changes to terms and conditions or are looking to implement wider scale structural changes.

We don’t have to look too far to recall employers who have failed to fulfil their obligations when it comes to running these types of consultations.

We know this is a very current topic for many – at our recent HR Club where we gave practical advice on handling consultations, the vast majority of attendees told us they were planning to do a collective consultation within the next 6 months, and expressed concerns and worries about getting the process right. So in this article we want to share some practical tips on how to handle collective consultations successfully.  

What is consultation and what are employers obliged to do?

The law requires that employers are obliged to consult with employee representatives if they are planning to dismiss 20 or more employees in a 90 day period if the reasons for those dismissals are because of redundancy or if the employer is proposing to terminate and re-engage employees.

There is a list specific information that needs to be provided in writing to employee representatives and then the law requires that the consultation should be on ways of:

  • Avoiding the dismissals
  • Reducing the number of employees to be dismissed
  • Mitigating the consequences of the dismissals.

How to get the process right 

Appreciating the legal context is only one part of the process however and often it is these other factors that employers don’t always consider. Below we have summarised the main points of our advice and best practice when doing consultations:

  • Engage in the process in good faith and with empathy
  • Understand your legal obligations – and consider legal advice
  • Prepare thoroughly before you begin, including by preparing key people
  • Have a clear business case for the proposal so that you can explain it to the employee representatives, prepare a timeline for the consultation, and prepare a meeting plan for each consultation meeting
  • Allow sufficient time for the process, and plan for the unexpected
  • Plan meetings and communications carefully
  • Give appropriate support to reps and manage relationships carefully
  • Be prepared to accept proposals that are made, and to give clear reasons where you don’t accept.

Getting the right support during a consultation can be a perfect solution to ensuring you manage the process effectively.  At Narrow Quay HR we have assisted a number of clients with their collective consultations – for reasons such as redundancies, changes to terms and conditions (including for independent school clients with possible changes to the Teachers’ Pension Scheme). We can support by providing scripts for consultation meetings, briefing relevant participants, training employee representatives, note taking and even chairing consultation meetings.

If you have a consultation in the pipeline and would like to discuss how we can assist you then please get in touch.  Or if you’d like to receive the recording of our HR club on consultation, please contact Simon Martin in our team on 07384 813 076.

What is the ‘Great Detachment’ and what can employers do about it?

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Workers are increasingly viewing their jobs as purely transactional, resulting in a growing risk of disengagement and limited discretionary effort. With low engagement estimated to cost the UK £257 billion annually, the ‘Great Detachment’ poses a very real threat to organisations which they cannot afford to ignore.

What is the ‘Great Detachment’?

At its core, the ‘Great Detachment’ is characterised by a noticeable decline in how central work is to employees’ lives. In their 2024 survey, Gallup data indicated that only 31% of employees are actively engaged at work, with the remaining 69% being either “quiet quitters”—doing only the bare minimum—or actively disengaged.

The 2024 Chartered Institute of Personnel and Development (CIPD) Good Work Index seems to echo these findings. Their results highlight a significant rise in the number of employees who view work as nothing more than a way to earn money, with nearly half of respondents (47%) expressing this sentiment in 2024 compared to 36% in 2019. Discretionary effort—employees’ willingness to go above and beyond—is another critical measure, remaining stagnant at 51% since 2023, far below the 57% recorded pre-pandemic level.

This shift appears to relate to several pandemic-era experiences: remote working blurred the boundaries between work and personal life, leading many employees to reassess their priorities. Additionally, the uncertainty and upheaval of the last few years created heightened levels of stress for many, with the result that many individuals are prioritising mental health and wellbeing over professional ambition.

What are the risks to employers?

Unlike the ‘Great Resignation’ where new job opportunities seemed to be plentiful, our economy has slowed, and with it, recruitment. For employers, that means those employees who would have taken their dissatisfaction elsewhere, are now staying put. Employees who are not motivated or are less committed, are likely to be less productive and possibly even underperforming. Combined with rising levels of burnout and dissatisfaction with mental and physical wellbeing at work, employers face a potential downward spiral of mediocre performance and diminished workplace morale.

What can employers do?

Whilst the prospect looks bleak, there are some steps employers can take to tackle demotivation and disengagement:

  • Align individual contribution with organisation goals: employees are more likely to be engaged when they feel a sense of purpose in their work and can see how they contribute to the company’s broader mission. This is more than simply sharing colourful company mission and strategy illustrations however. It is about line managers entering into meaningful conversations with employees to explore and agree how individual outcomes deliver into the wider organisational objectives.
  • Make employee wellbeing a priority: it’s clear from the surveys above, that many workers still experience negative effects of work on their mental and physical health. Many employers already offer wellbeing initiatives but it might be time to review those offerings to ensure they still meet employees’ needs. Develop these in discussion with staff to make sure are relevant and make sure those offerings include a focus on offering mental health support.
  • Career Development: a clear path for growth can re-engage employees who feel stagnant in their roles. Line managers have a critical role to play in this by holding meaningful discussions with employees to really understand their career aspirations and consider what further training and upskilling opportunities are available.
  • Role empowerment: micromanaging staff and limiting their opportunities for self-management rarely leads to satisfied employees who are willing to go the extra mile. Instead, promote a culture of trust and collaboration by empowering employees to make decisions about their work.
  • Recognition and reward: this of course includes ensuring suitable financial reward, but it is also about seeking other opportunities to acknowledge and celebrate employees’ achievements – whether that’s team ‘shout-outs’, thank-you cards or more formal recognition schemes.

Many organisations are facing challenging economic pressures, with increasing customer expectations having to be delivered with ever-tightening budgets. It’s therefore never been more important to ensure that the workforce who help to deliver on those expectations are as productive as possible and remain with you, even when the jobs market becomes more buoyant. By taking action now to counter dissatisfaction and disengagement, employers can help foster a more productive workforce, increase engagement, employee satisfaction and retention.

If you would like our help to review your approaches to employee engagement, please contact Sue Meehan Boyes in our team on 07384 468 797.

Embracing Equality, Diversity & Inclusion – why it is important for employers

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The recent pushback against Equality Diversity & Inclusion (EDI) with the advent of a new administration in America has placed EDI front and centre in recent headlines but not necessarily for the right reasons.

Look beneath the negative headlines and there is a wealth of evidence about the benefits of embracing EDI in the workplace not only for the performance of an organisation but for the wellbeing of all staff.

Economic pressures and recent shifts in cultural attitudes may be causing organisations to reassess their EDI measures. In the past few months, we have heard a call for a return to a more ‘masculine energy’ in the workplace and suggestions that those who support work life balance simply do not ‘love’ their work. These attitudes can limit an organisation’s potential, surrounding yourself with people who look and think like you has rarely been a recipe for success. Organisations are more likely thrive where they make work accessible to people from all walks of life, benefitting from diverse talents.

What is EDI?

As with many acronyms, EDI is widely quoted by many but its terminology can often confuse, so what do we mean by EDI?

  • Equality – Equality means removing barriers to opportunity and giving everyone in your organisation fair and equal opportunities to succeed across all aspects of work life including progressions and training.
  • Diversity – In simple terms diversity is about the range of different people in your organisation, and respecting, recognising and celebrating those differences.
  • Inclusion- means everyone feels valued in work. Making sure people feel comfortable to be themselves and giving them a sense of belonging so that they feel safe to share ideas and raise concerns.

What EDI is not

EDI allows organisation to employ and progress the best people by removing barriers and opening up opportunities to people from diverse backgrounds who may otherwise be overlooked perhaps because of their ethnicity or social background. EDI does not mean you should be giving opportunities to less capable candidates to simply increase diversity. In fact such positive discrimination is not lawful in the UK as we have highlighted in a previous article here.

What are the benefits of EDI?

In the UK, employers are mandated to treat people fairly and to not discriminate in accordance with the Equality Act 2010. The benefits of effective EDI policies and procedures are often expressed in terms of avoiding legal claims for discrimination but there are wider benefits to be achieved beyond merely avoiding compensation payments.

The ACAS guide to equality, diversity and inclusion highlights the positive impacts of effective EDI within the workplace

  • Happier employees and workplace
  • Improved retention and attraction
  • Fewer people issues
  • Heightened innovation
  • Enhanced customer service
  • More successful organisations

McKinsey’s  ‘Diversity Wins: How Inclusion Matters’ report, published in 2020 found that diversity within executive teams had a positive impact upon profitability. Organisations in the top quartile of gender diversity within their executive teams were 25% more likely to have above average profitability than organisations in the lowest quartile. This was an increase from their earlier reports of 21% in 2017 and 15% in 2014. Higher ethnic and cultural diversity within executive teams also impacted profitability with organisations with 36% more likely to achieve above average profitability. This underscores the importance of diverse perspectives in leadership.

Diversity alone will not help increase an organisation’s performance. The report found that to realise the benefits of a diverse workforce, inclusivity is key. A safe environment is essential where people feel included give them confidence to share new ideas and to participate fully.

What should organisations be doing?

EDI is often cited in company mission and values’ statements but it is critical that EDI is embedded throughout your organisation to avoid it appearing to be tokenistic. The benefits can make a profound improvement to the working lives of people and to your organisations. Some ways to bring this in to the heart of what your organisation does, include:-

  • Leadership – Strong EDI practices start from the top; senior leadership should be role models of EDI practices promoting an approach of ‘do as I say AND as I do’.
  • Policies – Ensure that your policies are up to date and compliant. This isn’t just about having an EDI policy but reviewing other relevant policies to ensure they reflect the same approach of equality, diversity and inclusion.
  • Staff training – ensure that employees as well as line managers, understand the part that they play in creating an inclusive environment.
  • Communication – open communication with staff makes them feel valued and helps them to understand the values and ethos of your organisation.
  • Engagement – engage with your staff to get their honest views about their experiences of working for your organisation. You can do this via anonymised staff surveys. This will help you identify areas where you could improve.
  • Recruitment – Advertise your job opportunities in more than one place, there are a multitude of recruitment platforms (media?) that can expand the reach of your advert to diverse sets of communities. Use inclusive language in adverts so as not to deter candidates from different backgrounds.

For further information on this topic or to discuss how we can support you implement good EDI practices in your workplace, please contact Lisa Reynolds in our team on 07771 316 123.

‘Back to the office’ – striking the balance between business needs and employee expectations in 2025

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The return-to-office debate continues to dominate conversations, as organisations seek to balance operational goals with the evolving expectations of their workforce.

While many business leaders are advocating for greater office attendance to enhance collaboration, culture, and productivity, employees remain steadfast in their preference for flexibility. In this article, we look at how organisations can navigate these competing priorities effectively.

Contrasting views between employers and employees

Insights from KPMG’s 2024 CEO Outlook reveal a growing push for in-office work, with 83% of UK CEOs expecting a full return to office-based working within the next three years, up from 64% in 2023. This outlook however contrasts sharply with employee sentiments. According to the same report, 69% of employees would consider changing jobs if mandated to spend more time in the office. This growing disconnect highlights the need for organisations to carefully manage the return-to-office transition to avoid disengagement and possible talent loss.

How can organisations achieve the right balance?

The key is to create a thoughtful, evidence-based workplace strategy that considers both organisational success and employee satisfaction. By addressing the following considerations, businesses can craft an approach that effectively balances flexibility and office attendance:

  1. Define the Purpose of Office Attendance
    Office time should serve a clear purpose. Organisations should focus on activities that benefit most from face-to-face interaction, such as team building, collaborative brainstorming, and strategic planning. Employees are more likely to embrace in-office attendance when they see its tangible value.
  2. Tailor Hybrid Policies to Business Goals
    Hybrid working policies should be aligned with an organisation’s operational needs. For some, this may involve setting specific office days for certain teams or functions, while others may opt for project-based in-office schedules. A one-size-fits-all approach is rarely effective.
  3. Foster Connection and Culture
    A thriving workplace culture doesn’t happen by chance. Business leaders and line managers should use in-office time to strengthen shared values, foster connection, and ensure employees feel aligned with the organisation’s mission. Intentional efforts to build culture, both in-person and virtually, are essential.
  4. Maintain Inclusivity Across Roles
    Not all roles lend themselves to remote working, which can create disparities. Flexible options such as staggered shifts, adjusted hours, or on-site wellness initiatives can ensure that all employees – whether office-based or remote – feel supported and valued.
  5. Engage Employees in Policy Design
    Employees are more likely to support new policies when they have a voice in shaping them. Open communication and regular feedback loops allow businesses to understand employee needs and address concerns while maintaining alignment with organisational goals.

By combining clarity, purpose, and inclusivity, organisations can develop balanced workplace strategies that foster collaboration, enhance productivity, and retain top talent.

If you require support with navigating the complexities of workplace strategy, discussions around increased office attendance, refining hybrid workplace policies, or enhancing workplace culture, please contact Megan Britz in our team on 07468 698957.

Employment Law – what’s coming up in 2025?

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The publication of the Employment Rights Bill last October highlighted significant changes coming to UK employment law. Whilst many of these reforms are not anticipated to take effect until 2026, this article highlights key changes to be aware of during 2025.

Protective awards and compensation uplifts – failure to properly consult

From 20 January 2025, Employment Tribunals will be able to increase the protective awards (compensation payments) by up to 25% when an employer has failed to comply with the statutory Code of Practice on dismissal and re-engagement. When an employer is carrying out a collective redundancy programme involving 20 or more employees, it has a duty to consult in a meaningful way. If an employer fails to properly consult, this new legislation could have a significant increase in costs, adding a potential 25% uplift to the existing 90 days’ gross pay per affected employee.

When planning redundancies or changes to terms and conditions, employers should review their consultation procedures to ensure that they meet the requirements, and seek further advice if concerned. We will be discussing this in further detail at our next HR Club on 13 February. If you would like to find out more, please book your place here.

Changes to pay from April 2025

There are several changes to different elements of pay due to be introduced from April 2025:

National Minimum Wage and National Living Wage increases from 1 April

  • Ages 21 and over: £12.21 per hour (6.7% increase)
  • Ages 18-20: £10.00 per hour (16.3% increase)
  • Ages 16-17 and apprentices: £7.55 per hour (18% increase)

National Insurance Contributions (NICs) – from 6 April

  • A rise in the secondary Class 1 NIC rate from 13.8% to 15%.
  • A reduction in the secondary NIC threshold from £9,000 to £5,000, making more earnings subject to NIC.
  • There will also be an increase in the Employment Allowance from £5,000 to £10,500, which will provide some relief for smaller employers.

Statutory payments

  • Statutory sick pay (SSP) will rise from £116.75 to £118.75 per week.
  • Statutory maternity pay, maternity allowance, statutory adoption pay, statutory paternity pay, statutory shared parental pay and statutory parental bereavement pay will rise from £184.03 to £187.18 per week.

Employers need to be aware of these changes, to allow sufficient time to amend payroll systems and when planning salaries during recruitment. Changes to NICs will lead to increased payroll costs, especially for employers where more employees will now earn above the reduced threshold.

These changes may also mean you need to review pay structures, as there could be less of a gap between entry level roles and management level roles.

Broadening of family-friendly legislation

HMRC guidance suggests that it is likely that the Neonatal Care (Leave and Pay) Act 2023will come into effect from April 2025. This will grant parents up to 12 weeks’ leave and statutory pay when their baby requires neonatal care. This will be a day-one right and will be in addition to existing parental leave rights.

The Paternity Leave (Bereavement) Act 2024 is also expected to be introduced in April 2025, which will provide bereaved partners a legal right from day one to leave if the mother or adoptive parent passes away. This will remove the 26-week minimum service requirement.

Although we are awaiting finer details and guidance on the above, employers can be aware of the likely changes when updating family leave policies. They could also consider any further support and guidance for managers around holding sensitive conversations when dealing with any employees impacted.

Other changes on the horizon

2025 could see the publication of the Government’s Draft Equality (Race and Disability) Bill for consultation, which could extend equal pay rights to protect workers suffering discrimination on the basis of race or disability. The government’s plan toMake Work Pay included a right for workers to disconnect from work outside of working hours. The Government plans to introduce the policy through a statutory code of practice, with a consultation expected to begin in 2025.

There will also be further consultations on several measures in preparation for changes that are likely to be implemented in 2026 under the Employment Rights Bill. To prepare for these changes, employers can consider any further training requirements for their managers. For example, a ‘day one’ right to not be unfairly dismissed could lead to additional training needs in areas such as performance management or a review of probation procedures.

If you would like to discuss how you can ensure your organisation is compliant and taking steps to prepare for the upcoming legislation, please contact Rachel Walker in our team on 07392 090890.

How to handle trauma-informed investigations

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Investigations by their very nature can be complex undertakings, particularly if you are dealing with matters of a sensitive nature. How do you handle investigations where someone has been traumatised by their experience?

Following the recent publication of the Equality and Human Rights Commission (EHRC)’s technical guidance on sexual harassment in the workplace, we have considered its impact on carrying out investigation and whether you are able to carry out an investigation with someone who has been traumatised?

What does the guidance say about investigations?

  • Thorough investigations: investigate all complaints promptly and thoroughly, ensuring impartiality and confidentiality
  • Training: ensure that those conducting investigations are trained in handling sensitive issues and understanding the impact of trauma.

This involves a consideration of trauma-informed investigations. What does that mean?

A trauma-informed investigation prioritises understanding and mitigates the potential re-traumatisation of the individuals involved, while maintaining the integrity and fairness of the process. This approach is particularly vital in workplaces or organisations where individuals may have experienced distressing events, such as harassment, discrimination, or violence.

Key steps to prioritise understanding and mitigate any further re-traumatisation

  1. Prepare with empathy: investigators need to consider the effects of trauma, including its psychological and physiological impacts. As part of that preparation, it’s important to understand that trauma can affect memory recall, emotional regulation, and communication.
  2. Create a safe environment: This is about ensuring the physical and emotional safety for all parties. Conduct interviews in private, neutral settings, and take time to communicate clearly about the process, expectations, and confidentiality.
  3. Use a person-centred approach: Prioritise the well-being of the individual. Listen actively and non-judgmentally. Be patient during an interview and allow for pauses or breaks if the person becomes overwhelmed.
  4. Adapt interview techniques: Using open-ended, non-leading questions are a key skill for any investigator. When considering someone who has experienced trauma, consider how to adapt those questions to avoid triggering distress. For example, instead of asking “Why didn’t you report this earlier?” ask, “Can you share what led to your decision to report this now?”.
  5. Minimise repetition: Avoid asking the individual to recount their experience multiple times, as this can compound distress. Record information accurately and share it only with those who need to know.
  6. Acknowledge and normalise responses: Understand that emotions such as anger, fear, or withdrawal are common trauma responses.
  7. Ensure transparency and support: Clearly communicate next steps and check in with the individual regarding their ability to access support, signposting to relevant resources, such as counselling or employee assistance programmes.

This is the approach that our experienced investigators at Narrow Quay HR take when we carry out investigations where the interviewee may have been traumatised by events that they have experienced. We can also provide training on how to carry out trauma-informed investigations.

If you would like to discuss training opportunities or would like some support in carrying out a trauma-informed investigation, please contact Simon Martin in our team on 07384 813 076.

Men’s Health Awareness

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I imagine many of you reading this article can’t quite believe it’s December already. I had a similar experience earlier this month, when Number One Son walked in displaying a moustache that Tom Selleck would have been proud of (early 80’s reference for fans of Magnum PI!). 

The reason for my surprise was not the arrival of facial hair on said-son’s face – it has been there for some time, all be it in a less-coiffured state. It was more that I had not realised it was ‘Movember-time’. Normally the arrival of this men’s health campaign is accompanied by a procession of a myriad of facial manifestations.  Whether it’s loved ones, friends, work colleagues or the milkman – moustache-marvels are usually evident everywhere!

So as I prepared to write this article on men’s health, it got me wondering – had I missed the campaign or could it be that men’s health is no longer an issue of interest?  Certainly, the evidence on men’s health is more compelling than ever and the statistics make for a sobering read.  A recent report by the Movember Institute of Men’s Health reported that a boy born in 2021 can expect to live 4 years less than a girl; 39% of UK men die prematurely before they are 75 years old; and suicide remains the leading cause of death among men aged 20-34 years, with the suicide rate was three times higher for men than for women. So the evidence suggest men’s health is most definitely still a matter for concern.

Support for men’s health

To reassure you, the ‘Movember’ campaign is as alive as ever and continues its work on raising awareness of men’s health as evidenced, not only by its annual Movember campaign, but also by its recent report mentioned above.  Other organisations focussing on men’s health include: MANUP?, Men’s Health Forum and Andy’s Man Club.  The increasing importance the work of such organisations was evidenced this year when the founder of Andy’s Man Club, Luke Ambler, was awarded the University of Bradford’s Outstanding Contribution Award recognising his work in raising awareness and support for men’s mental health.

What can employers do?

Given many of us spend a large proportion of our time working, it is logical that we look to our workplaces to continue that focus on men’s health.  Not only from a moral point of view, but it surely makes good business sense to promote the wellbeing of all sectors of the workforce.  Here are some ways you can provide that support men’s health:

  • Increase Awareness: If part of the issue is that men simply aren’t aware of possible health risks, run campaigns that seek to educate about men’s health issues, including the importance of early detection and mental health support.
  • Encourage Open Conversations: Create a safe space, such as a men’s forum, that encourages open discussions about health and well-being and support.
  • Support public initiatives: publicise and support campaigns such as Movember, Men’s Health week (annually in June), and Men’s Health Awareness month (annually in November) and encourage employees to participate.
  • Mental Health Support: signpost employees to any confidential counselling services, helplines, and resources for employees struggling with mental health concerns, whether that’s through a company funded Employee Assistance Programme or via external organisations.
  • Maintain a focus on health and wellbeing: Promote regular health check-ups, encourage employees to stay physically active and achieve a healthy work-life balance.
  • Men’s Health Champion: consider having a men’s health champion that employees can talk to and who can signpost them to support.
  • Lead by Example: Encourage senior management to set an example by taking care of their own health and well-being, demonstrating that it’s not a sign of weakness to seek support when needed.

Conclusion

Men’s health remains an important issue and continues to be highlighted and supported by many campaigns and charities.  Rather like the previously taboo subject of menopause, which is now a more accepted topic both outside and within the workplace, it seems that men’s health is also becoming a more normalised subject of conversation. Whilst Number One Son was very happy to see the end of ‘Movember’ – the attraction of being mostly clean-shaven had most definitely waned by the end of week one – for workplaces and society alike, the focus on prioritising men’s health must continue.  Integrating year-round initiatives with key campaigns such as ‘Movember’ can be a solution.  Ensuring those initiatives have real meaning and senior-level sponsorship will be key to delivering a genuine commitment to improving men’s health at work and ultimately in wider society.

If you would like our support on developing key initiatives on men’s health or more general staff wellbeing concerns, please contact Sue Meehan Boyes in our team on 07384 468797.

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The UK Budget 2024: Implications for Employment Practices

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As the dust settles on the UK’s latest Budget announcement, business leaders with workforce responsibilities are examining its impact on their roles and organisations.

The Budget, presented amidst challenging economic conditions, brings targeted initiatives and changes in funding that will affect employment practices, recruitment strategies, and workforce management. Here, we summarise key points from the Budget, particularly as they relate to HR and employment, to provide insights on what business leaders should expect in the months ahead.

1. Investment in Skills and Training

A central theme of the Budget was enhancing the UK workforce’s skillset, emphasising future-ready skills and lifelong learning. Recognising the needs of an evolving digital and green economy, the Government has committed to significant funding to increase the accessibility of skills training in emerging fields. This focus will benefit organisations working to close skills gaps, as it may lead to more candidates with specialised skills in technology, renewable energy, and digital transformation.

Additionally, schemes like the “Lifelong Loan Entitlement” (LLE), set to launch in 2025, will provide workers with flexible access to financial support for upskilling throughout their careers. Business leaders can encourage employees to take advantage of such schemes, potentially aiding employee retention, by supporting career growth within the organisation.

2. Workforce Inclusivity: Boosts for Childcare and Flexible Working

To address barriers to workforce participation, particularly among parents and carers, the Budget has earmarked funds to expand affordable childcare. This initiative aims to ease the financial and logistical challenges for working parents, enabling them to re-enter or remain in the workforce. Business leaders should consider how expanded childcare access can influence recruitment, employee retention, and absenteeism. Furthermore, with continued calls for flexible working arrangements, businesses may look to blend government support with in-house policies to support work-life balance, known to be a key factor in employee satisfaction.

The Budget’s increased investment in inclusive workforce participation reflects a broader governmental push toward diversity, equity, and inclusion (DEI) that organisations may wish to mirror. Expanding internal DEI initiatives to align with these public goals can enhance the employer brand and attract a more diverse talent pool.

3. National Minimum Wage and Living Wage Increases

In line with the Government’s ambition to improve living standards, the Budget announced a rise in the National Minimum Wage (NMW) and the Living Wage. While beneficial to workers, this increase will raise costs for employers, especially those with large, low-wage workforces. It will also mean reassessing wage structures to accommodate new minimums while maintaining fair pay across the board. This shift might also impact budgeting for hiring and other workforce costs.

To balance these rising wage demands, organisations may look to adopt more efficient workforce management strategies, like automated scheduling and workforce planning, that can help streamline processes and reduce operational costs.

4. Encouraging Employment of Older Workers

The Budget places an emphasis on policies that support the recruitment and retention of older workers, aiming to capitalise on their experience and contribute to a multi-generational workforce to enhance knowledge sharing and create more inclusive workplaces. The Government is offering support for tailored training and wellbeing programmes for older workers. Employers can build on this initiative by developing age-inclusive policies, reassessing recruitment practices to reduce age bias, and exploring flexible work arrangements that cater to older workers’ preferences.

5. Green Jobs and Sustainability Initiatives

With the UK’s commitment to reaching net-zero emissions by 2050, the Budget has allocated funds toward creating “green jobs” in industries that support sustainability. As the demand for eco-friendly products and services grows, the workforce will need new skills to meet these demands. Organisations should be proactive in identifying green skills relevant to their sectors and consider partnering with training providers to upskill their employees accordingly.

Additionally, businesses with established environmental commitments may benefit from government grants for sustainability projects. Employers can use these developments to strengthen their organisation’s appeal among environmentally conscious job candidates and engage current employees in eco-friendly initiatives.

6. New Compliance Measures and Incentives

With a commitment to modernising compliance, the Government is increasing support for digital record-keeping and tax automation tools, especially for small and medium-sized enterprises (SMEs). This may mean adopting new technology platforms for HR and payroll that integrate with government systems for real-time reporting and compliance with payroll and tax legislation.

The Budget also introduced incentives for employee wellbeing, with new funds earmarked for mental health support in workplaces. This provides organisations with an opportunity to access grants for mental health initiatives, such as mental health first aid training and wellness programmes, which can improve productivity and retention while meeting growing employee expectations for mental health support.

Preparing for Change

The 2024 Budget offers employers both challenges and opportunities. From wage adjustments to support for skills development and inclusivity, there are numerous initiatives that will shape workplace practices in the coming years. To adapt effectively, organisations will need to:

  • Evaluate pay structures to ensure compliance with new minimum wages while maintaining internal equity;
  • Encourage upskilling through government-backed schemes, which can benefit retention and build a more resilient workforce;
  • Prioritise diversity, equity, and inclusion (DEI) by capitalising on childcare support and flexible work initiatives;
  • Foster an age-diverse workforce through re-training programmes and flexible work options;
  • Advance sustainability by aligning recruitment and training practices with emerging green job requirements.

By proactively integrating these changes, organisations can strengthen their competitive edge, foster an inclusive workplace, and contribute to a more sustainable and skilled workforce.

If you would like help to ensure you are adapting to and optimising opportunities arising from the 2024 Budget, or if you have any other HR queries, please contact Jo Bradbury in our NQHR team, on 07570 372118.

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The New Employment Rights Bill – what it means for employers

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The Employment Rights Bill, published on the 10th October 2024, is the flagship proposal by the new Government promising to ‘make work pay’. The Bill outlines the most significant and far-reaching changes to employment law for decades. In this article we review the proposals and the implications for employers including the most recent amendments to the Bill published last week.

What are the headlines?

Everyone is talking about – Unfair Dismissal – A “Day One” Right

Employees will have the right to bring a claim for unfair dismissal from the first day of employment and will no longer have to wait to be employed for 2 years before bringing a claim.

There will be an exception to this right in the initial period of employment, or what we would commonly refer to as a probationary period. In the probationary period the employer will need to carry out a ‘proportionate assessment of the employee’s suitability for a role’. At the time of writing, it has been confirmed that this period will be between 3 and 9 months.

The Government plans to consult extensively on this proposal but as a minimum it has said that employers will need to meet with employees to explain the performance issues before deciding to dismiss. Whilst this will be a lighter touch than the usual unfair dismissal, you will need to be able to show good, objective evidence of the employee’s unsuitability for the role, provide appropriate training and opportunities to improve.

This probationary period will relate to the employee’s suitability for the role and will not therefore apply to redundancy dismissals where full unfair dismissal rights will apply from day one.

Although the law will not come into force for 2 years you will need to start preparing as any new employees who start employment in the next couple of years will not have to wait the full 2 years to bring a claim if the new legislation comes into force in 2026 as planned. A new employee starting in Autumn 2025 will only need a year’s service as the new law would start in Autumn 2026. Ensuring that you have effective probationary management in place will therefore be key.

Doubling the Tribunal Claim Time Limit

In the amendment paper last week, the Government confirmed its intention to increase the time for bringing an employment tribunal claim from 3 months to 6 months for all claims. This is a significant change which would give employees more time to submit a claim but on the plus side would give employers more time to settle before any claims are issued.

Fire and Rehire and Zero hours contracts

The Bill will mean that it will be automatically unfair to dismiss an employee for refusing a contract variation. Employers will only be able to change contracts using this method in cases of financial necessity that threaten business viability.

Those on zero or low hours contracts will have the right to a guaranteed hours contract if they regularly work a defined number of hours. There will also have to be reasonable notice of shifts and compensation for last minute cancellations of shifts.

Statutory Sick Pay, parental and other Leave

Employees will be able to claim statutory sick pay from the first day of sickness absence and the earnings threshold is removed.

The qualifying periods for paternity and parental leave will be removed, giving employees these rights from day one. Employees will also be able to take paternity leave after shared parental leave.

In addition to bereavement leave of two weeks for the loss of a child, the bill extends this to other individuals. The leave for other relatives will be for a shorter period of one week and the regulations, which are to follow, will determine which relatives the leave will apply to. If there is more than one bereavement in the year the employee will be entitled to leave on each occasion.

There will be a presumption in favour of flexible working and the Bill makes it harder to refuse these. The right to request flexible working is already a day one right but where an employer refuses a flexible working request on one or more of the specified grounds, they will now have to show that the refusal is reasonable.

Protection for maternity and pregnancy

Regulations implemented following the Protection from Redundancy (Pregnancy and Family Leave) Act 2023, extended existing protections so that they now begin on the day the employer is first notified of the employee’s pregnancy and end 18 months after the date of the child’s birth or after the date of adoption for parents taking adoption leave. 

The Bill proposes further enhanced protections for pregnant women and new mothers, including protection from dismissal during pregnancy and maternity leave. Employers will be unable to dismiss a woman who is pregnant or on maternity leave and during the initial 6 months period on return to work – except in specific circumstances.

Gender Equality Plans

The amendments have also included a new statutory obligation to produce equality plans related to gender equality (including gender pay gap and menopause) for organisations with 250 or more employees. As well as gender pay gap reporting these employers will have to explain what steps they are taking to help women experiencing the menopause.

Sexual Harassment

The new law on sexual harassment came into force on the 26th October 2024 and employers must take reasonable steps to prevent sexual harassment. The Employment Rights Bill proposes to change this law and make it stronger. Employers will have to show that they have taken all reasonable steps to prevent the harassment.

The Bill also makes it clear that the employers will be responsible for third party sexual harassment, see below.

Third Party Harassment

There is a significant change to the law on harassment. The Bill says that employers will be held responsible for harassment of their employees by third parties (related to any protected characteristic) where they haven’t taken all reasonable steps to prevent it. What will amount to all reasonable steps where third parties are concerned, remains to be seen.

Non-Disclosure Agreements

The amendment paper provides that any non-disclosure agreements which seek to prevent workers from disclosing details of harassment (including sexual harassment) will be void.

Future reforms

The Government has said that it will publish a ‘Next Steps’ document which will outline future reforms, including:

  • A ‘right to switch off’ to prevent out-of-hours contact, except in emergencies.
  • A commitment to tackle pay discrimination by expanding the Equality (Race and Disparity) Bill to mandate large employers to report on ethnicity and disability pay gaps.
  • A move towards a simpler two-part framework for employment status.
  • Reviews of parental leave and carers leave systems.

Do I need to panic?

The short answer is no! The Government has said that the new laws are likely to come into force in Autumn 2026 so you have time to prepare for these changes.

The Government plans to consult extensively on the proposals and some of those consultations have already started.

All of the consultations provide a crucial opportunity for you as employers, to influence the development of the Employment Rights Bill. The responses could shape the final form of the legislation. Don’t think that you are too small to make a difference – if you want your voice to be heard, review the proposals and provide your feedback to ensure that your perspectives are represented.

There will be consultation more widely on the implementation of other measures, so you will have the opportunity to feedback and shape the development of these changes.  There is therefore time to prepare but if you would like to discuss how we can help you get ready for these changes, please contact Lisa Reynolds in our team on 07771 316 123

Navigating the Christmas party season: guidance for employers

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Whilst the holiday season provides the opportunity to bring teams together to celebrate the festive period and achievements over the last 12 months, on occasion it can also lead to some management challenges.

This article explores some example scenarios, and outlines steps for how as managers you can resolve these.

“Tis the season to be jolly…”. During the run up to Christmas, there can be many team lunches, organisation parties and networking events which your team members may wish to attend. These can be useful opportunities for colleagues to spend time together informally and are a great way to boost employee morale and show employees they are valued. Where you have hybrid arrangements, it’s also a nice way to bring people together face-to-face.

However, where alcohol is involved, there may be occasions where a manager has concerns about an individual’s behaviour, or feels they may still be under the influence when they are back at work. In these situations, managers may wish to:

  • Consider whether there are any health and safety concerns, as keeping everyone safe should be the priority. For example, if they have a role involving and hazards or machinery, they should be removed from this area immediately.
  • Think about what is the best approach for the individual – this could be sending the individual home to rest, or asking them to stay at work where colleagues could keep an eye on them until it may be safe for them to go home.
  • Consider any impact on the organisation – i.e. should they be kept away from customers and away from clients.
  • When the individual has returned to work, take any appropriate further action in line with any relevant policies. Depending on the situation, this could range from an informal catch-up highlighting the concerns to an investigation as part of a disciplinary process.

Another potential scenario could be when a Christmas party incident subsequently causes issues in the workplace and impacts on working relationships. Ways managers could resolve these are:

  • By reminding individuals that they are in the workplace, and any personal issues should be kept aside.
  • See if there are opportunities to keep individuals apart and separate to allow time to ‘cool off’.
  • Refer to any relevant formal procedures – depending on the scenario, the disciplinary procedure may need to be invoked or mediation considered.

In both the above scenarios, it’s useful for managers to keep notes and records, in case any further issues arise.

Ideally, it is better to avoid scenarios like these occurring in the first place.  If you are particularly concerned about the potential for tricky situations, you might want to consider issuing a reminder to employees of behaviour expectations at these types of events and signpost them to relevant policies, such as your Code of Conduct or Alcohol and Drugs policies.

For further advice on supporting your team during the Christmas period, contact Rachel Walker in our team on 07392090890.