The IoD’s Directors’ Economic Confidence Index, a gauge of business leaders’ confidence in the UK’s economic future, shot up to a whopping 14 points in December 2023. This score is the sunniest since May 2023 (-6) and the most impressive leap in a month (+14) since a year ago (+30).
The report suggests that business leaders are optimistic about their own business growth but perhaps slightly less optimistic about the economy as a whole. It feels like after a period of continuing rising costs and pay rises, business owners are now focusing on reshaping their businesses to ensure a sense of stability.
We’ll be watching the budget next week to see what support the government will be offering small businesses (in real terms) to ensure continued economic stability and improved investment back into the business.
So, what’s the scoop and what’s the game plan?
April is set to be another busy month in terms of changes to employment rights, so be prepared for some new regulations that may impact your organisations. We know that running a business already comes with its fair share of challenges, so as always our goal is to make this information as straightforward as possible for you.
Flexible working
Be prepared to hear a lot more about this over the coming weeks as it hits the headlines again – starting April 6th, no more waiting 26 weeks to request flexible working! It now becomes a day one right, now this in itself is nothing new, since covid we continue to see request for flexible working even from interview stage but this does go a little further, the challenge will be that this has the potential to sink your managers time if not handled correctly from the outset, let look at the changes:
- employees will be able to put in 2 requests within a 12 month period, which could potentially mean managing more change within the business.
- employers will need to respond to the request and any appeals within 2 months
- there will be a requirement for the employer to consult with the employee before refusing a request (only in the form of a conversation)
- employees will no longer need to set out the effect that requested arrangement will have on the business
Action: revisit your contracts now, crafting a flexible working policy is the new must-do for all employers, be sure to shape it so that it clearly manages expectations and ensures any requests are dealt with swiftly to avoid request becoming time consuming for your business, maybe think about “how” you want flexible working to work for your business ie what the business can accept and what you most definitely can’t. Remember you are not obligated to accept all requests, it’s about what works for your business !
Need a hand with this? Just give us a shout, and we’ll guide you through the ins and outs of flexible working!
Statutory rates
Wages are set to rise again as the National Living Wage kicks in on April 1st!
Action: The age bracket for higher pay will now start at 21 instead of 23 so be sure to check employees that could fall into these categories.
- The National Living Wage (for people aged 21 or older) will increase from £10.42 to £11.44 per hour.
- The National Minimum Wage for workers aged 18–20 will increase from £7.49 to £8.60 per hour.
- The young workers rate for workers aged 16–17 will increase from £5.28 to £6.40 per hour.
- From April, SSP rates will increase to £116.75 per week.
Family leave
From April 7th family leave rates will increase to £184.03 so it goes without saying, be sure to reflect these changes in employees who are off on family leave after this time.
Whilst we’re on the subject of family leave, especially paternity leave, brace yourself for some news, pending parliamentary green light. Soon, dads can enjoy two separate weeks of leave within the first 52 weeks after a new arrival or adoption, starting from April 6, 2024.
Also awaiting the thumbs-up from Parliament, get ready for the Maternity Leave, Adoption Leave, and Shared Parental Leave (Amendment) Regulations 2024! These rules are all geared up to provide a safety net for new parents, safeguarding them from job uncertainties during pregnancy and up to a generous 18 months after welcoming or adopting a little one.
Action: Time to dust off those family leave documents and give your managers a heads-up on these changes.
Holidays for part year/irregular hours
Just a heads-up. If you have employees who work part of the year, like term-time staff, starting April 1st, holiday perks for part-timers and those with unpredictable hours can be figured out by crunching some numbers – specifically 12.07% of the hours worked in the pay period. In addition rolled-up holiday pay will be allowed from this date exclusively for part-year and irregular hour workers. This one has been around the block a few times now but there seems to be a bit more clarity now.
Carers Leave
Starting from 6 April 2024, employees will have the right to unpaid leave to provide or organise care for a ‘dependent’ who:
- has a physical or mental illness or injury requiring care for over 3 months,
- has a disability,
- or requires care due to old age.
The ‘dependant’ does not necessarily have to be a family member; it can be anyone dependent on them for care. The draft regulations set out important detail relating to the Act, including:
- the legislation will cover employees in England, Wales and Scotland.
- to be entitled to the provision, employees need to be providing long term care
- the leave will be able to be taken in half or full days, up to and including taking a block of a whole week of leave at once.
- the notice period an employee needs to give to take the leave is twice the length of time that needs to be taken in advance of the earliest day of leave.
- an employee does not need to notify their employer in writing regarding their request to take Carer’s Leave, although they can do so if they wish to.
- importantly, employees taking Carer’s Leave will have the same employment protections as associated with other forms of family related leave. This includes protection from dismissal or detriment as a result of having taken the leave.
The draft regulations still need to be passed by Parliament and we will provide further updates when this happens. We also expect guidance to be made available in advance of the legislation coming into force on 6 April 2024.
Illegal workers
From February 13th, the penalty for hiring illegal workers is about to skyrocket. The fine for a first offense will skyrocket from £15,000 to a whopping £45,000 per unlawful worker. And for those who just can’t seem to follow the rules, brace yourselves for the fine jumping from £20,000 to a hefty £60,000 for repeat offenses.
Action: If you’re hiring talent from beyond UK borders, don’t forget to peek at that sponsor license status and keep all paperwork shipshape and up to date!
If there is any anything that you would like further clarification on, feel free to reach out to us.
