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As SMEs approach pay review season for 2025, businesses must carefully balance financial sustainability with the need to retain and motivate employees. Rising costs of living, regulatory changes, and evolving employee expectations are key factors shaping this year’s pay strategies.

This guide explores critical economic trends, salary benchmarking, and alternative reward strategies to help SMEs make informed pay decisions. With 2025 on the horizon, SMEs are facing complex decisions regarding pay reviews. Rising living costs, inflation, and changes to National Insurance (NI) are key factors affecting employee expectations and business affordability. Unlike larger corporations with extensive financial resources, SMEs must balance competitiveness with sustainability.

This white paper explores the economic landscape, industry pay trends, and practical alternatives to traditional pay increases. It provides SMEs with actionable strategies to navigate pay reviews effectively while maintaining financial health and employee satisfaction.

Key Influences on 2025 Pay Decisions

A deep understanding of economic conditions is essential for businesses conducting pay reviews. SMEs should assess broader financial trends, legislative changes, and employee expectations before finalising salary adjustments.

Understanding the broader economic landscape is crucial for SMEs to make informed pay review decisions. While employees expect pay increases to keep up with inflation and the cost of living, businesses must balance this with financial sustainability. Below are key factors that will shape pay review strategies in 2025, along with actionable insights on how SMEs can adapt.

Changes to Maternity Leave and Family-Friendly Policies

The UK government has introduced significant updates to family-friendly policies set to take effect in 2025. These changes reflect a shift towards greater work-life balance and enhanced employee rights, particularly for working parents and carers. Key updates include:

• Extended Statutory Maternity and Paternity Leave: Parents will now have enhanced flexibility in how they take their leave, with additional weeks available in specific circumstances.

• Shared Parental Leave (SPL) Enhancements: Revisions to SPL make it more accessible, allowing parents to take time off more flexibly without the previous administrative burden.

• Carer’s Leave Act Implementation: Employees with caring responsibilities will be entitled to up to one week of unpaid leave per year, providing crucial support for those managing work and caregiving duties.

• Flexible Working as a Day-One Right: Employees will no longer need to wait 26 weeks before requesting flexible working arrangements. Employers must handle such requests more transparently and consider them in good faith.

SMEs should review their HR policies to ensure compliance with these changes and proactively communicate these benefits to their workforce, enhancing retention and engagement. The UK government has introduced various enhancements to family-friendly policies, including increased flexibility for maternity leave, paternity leave, and shared parental leave. These changes may impact workforce planning and pay review strategies for SMEs. Key updates include:

• Extended statutory maternity and paternity leave entitlements.

• Increased rights for carers, including additional unpaid leave allowances.

• Greater flexibility in requesting part-time or hybrid work arrangements post-maternity leave.

SMEs should factor these changes into their pay and benefits strategies to ensure compliance and maintain employee engagement.

Cost of Living and Inflation

Employees are increasingly concerned about the cost of living, which directly impacts salary expectations. Two key inflation indicators shape pay review considerations:

• Retail Price Index (RPI) – Historically higher than other inflation measures, RPI has hovered around 5% in early 2025.

• Consumer Price Index (CPI) – Lower than RPI but still significant in affecting employees’ purchasing power.

While inflation is expected to stabilise, employees will anticipate salary adjustments reflecting recent cost increases. SMEs must assess their ability to meet these expectations without jeopardising financial stability.

National Insurance Contribution (NIC) Changes

The UK government has introduced significant changes to National Insurance Contributions (NICs) in 2025 that will impact both employers and employees. These changes mean that payroll costs will vary for each business depending on workforce composition, salary structures, and eligibility for allowances. Key updates include:

• Employer NIC Rate Increase: The rate of employer NICs (secondary Class 1 NICs) will increase from 13.8% to 15%, resulting in higher payroll costs for businesses.

• Secondary Threshold Reduction: The earnings threshold after which employers become liable to pay secondary Class 1 NICs will decrease from £9,100 per year to £5,000 per year, increasing the number of employees subject to NIC contributions.

• Employment Allowance Increase: The Employment Allowance, which allows businesses to deduct a certain amount from their employer NICs bill, will increase from £5,000 to £10,500, offering some relief to smaller businesses.

• Employment Allowance Threshold Removal: The £100,000 NICs bill threshold for Employment Allowance eligibility will be removed, meaning more employers can now claim this benefit.

• Class 1A and 1B NIC Rate Increases: NIC rates on expenses and benefits provided to employees will rise from 13.8% to 15%, increasing costs for businesses offering such benefits.

Each payroll will be affected differently, and businesses should seek professional advice where needed to ensure they are making informed and financially sustainable decisions regarding pay reviews and budget planning. The UK government has introduced significant changes to National Insurance Contributions (NICs) in 2025 that will impact both employers and employees. Key updates include:

• Employer NIC Rate Increase: The rate of employer NICs (secondary Class 1 NICs) will increase from 13.8% to 15%, resulting in higher payroll costs for businesses.

• Secondary Threshold Reduction: The earnings threshold after which employers become liable to pay secondary Class 1 NICs will decrease from £9,100 per year to £5,000 per year, increasing the number of employees subject to NIC contributions.

• Employment Allowance Increase: The Employment Allowance, which allows businesses to deduct a certain amount from their employer NICs bill, will increase from £5,000 to £10,500, offering some relief to smaller businesses.

• Employment Allowance Threshold Removal: The £100,000 NICs bill threshold for Employment Allowance eligibility will be removed, meaning more employers can now claim this benefit.

• Class 1A and 1B NIC Rate Increases: NIC rates on expenses and benefits provided to employees will rise from 13.8% to 15%, increasing costs for businesses offering such benefits.

These changes mean that SMEs must carefully review their payroll budgets and factor in higher employer NIC costs when planning pay reviews. Businesses should also consider whether they are eligible for Employment Allowance to offset some of these increased expenses. The UK government has introduced NIC reductions for employees, slightly increasing take-home pay. However, employer NI contributions remain at 13.8%, continuing to be a significant cost burden for businesses.

Although these changes offer minor relief, they do not replace the need for thoughtful compensation strategies.

Industry Pay Trends and Benchmarks

Many large organisations are planning pay increases of 4-6% in 2025, setting expectations for employees across industries. However, SMEs must consider affordability when determining their own salary adjustments.

A strategic approach is essential—one that balances competitive pay with business sustainability.

Beyond Salary Increases: Alternative Compensation Strategies

Given budget constraints, SMEs can explore alternative incentives to maintain competitive compensation packages. Non-monetary rewards can improve job satisfaction and retention while minimising financial strain on the business.

To remain competitive while managing budget constraints, SMEs should explore a mix of financial and non-financial rewards. Employees value different aspects of compensation beyond just salary increases, so businesses should consider personalising their rewards approach to attract and retain talent effectively. Instead of automatically implementing salary increases, SMEs can explore a variety of alternative compensation models that align with employee preferences and financial feasibility.

Performance-Based Bonuses and Commission Structures

Performance-based incentives allow SMEs to reward high performers without committing to permanent salary increases. Implementing structured bonus schemes tied to business profitability, individual performance, and customer satisfaction metrics ensures that employees are motivated while the business remains financially stable. Implement a structured bonus scheme based on:

• Business profitability

• Individual or team performance

• Customer satisfaction metrics

This model ensures that pay increases correlate with business success rather than being a fixed expense.

Additional Paid Leave and Holiday Flexibility

Providing extra paid leave can be a cost-effective way to boost employee morale. SMEs can offer additional annual leave days or implement flexible working arrangements, helping employees achieve a better work-life balance while reducing turnover.

Other schemes to consider:

• Buy/Sell Holiday Schemes – Employees can purchase additional leave days or sell unused leave back to the company.

• Increased Holiday Entitlement with Length of Service – Reward long-term employees with extra leave days as they reach milestones in their service.

• Flexible Bank Holidays – Allow employees to swap public holidays for personal or religious observances.

• Birthday Leave – Offer employees an additional day off for their birthday as a valued benefit. Providing extra paid leave can be a cost-effective way to boost employee morale. SMEs can offer additional annual leave days or implement flexible working arrangements, helping employees achieve a better work-life balance while reducing turnover. SMEs can offer:

• 2-5 extra days of annual leave in lieu of a pay increase

• Flexible working arrangements to improve work-life balance

Enhanced Employee Benefits Packages

A well-rounded benefits package can be just as valuable as a salary increase. SMEs can enhance pension contributions, offer private healthcare, and introduce Employee Assistance Programmes (EAPs) to support employees’ mental and financial well-being. SMEs can introduce:

• Employer pension contributions above the legal minimum

• Private healthcare and wellness programs

• Employee Assistance Programmes (EAPs) for mental and financial well-being

Career Development and Training

Investing in employee growth can enhance job satisfaction and retention. SMEs can provide access to leadership training, professional development courses, and mentorship programs to support long-term career progression. Businesses can invest in:

• Professional development courses

• Leadership training programs

• Internal mentorship and coaching initiatives

Profit-Sharing or Equity-Based Compensation

Tying rewards to business success fosters a culture of ownership. SMEs can implement profit-sharing schemes or share option plans, giving employees a direct stake in the company’s long-term growth and profitability. SMEs can introduce:

• Profit-sharing schemes where employees receive bonuses based on company profitability

• Share option schemes to give employees a direct stake in business success

Implementing an Effective Pay Review Process

To structure a fair and sustainable pay review process, SMEs should adopt a systematic approach. This ensures that decisions are data-driven, transparent, and aligned with both business goals and employee needs.

Implementing an effective pay review strategy requires careful planning and execution. Below is a detailed, step-by-step guide to help SMEs conduct a structured and informed pay review process. To successfully navigate pay reviews in 2025, SMEs should follow a structured approach:

Step 1: Assess Business Financials

• Conduct a thorough financial review, including revenue projections, profit margins, and cost forecasts.

• Identify areas where budget can be allocated towards salary adjustments or alternative benefits.

• Establish a compensation budget that aligns with business goals and cash flow stability.

• Evaluate current revenue and projected profitability.

• Determine affordability before committing to pay increases.

Step 2: Benchmark Against Industry Standards

• Research competitor salary trends to stay competitive.

• Consider regional differences in pay expectations.

Step 3: Engage Employees in the Process

• Conduct anonymous employee surveys to gather insights on salary expectations and preferred benefits.

• Hold open forums or one-to-one discussions to better understand workforce needs.

• Create employee focus groups to test and refine different reward strategies before implementation.

• Conduct internal surveys to understand what employees value most.

• Use insights to tailor compensation and benefits packages.

Step 4: Communicate Transparently

• Manage employee expectations with clear explanations of pay review decisions.

• Outline alternative benefits if direct salary increases are not feasible.

Step 5: Implement a Staggered Approach

• Introduce incremental salary adjustments rather than one-off large increases.

• Roll out new benefits or bonuses in phases to manage financial risk effectively.

• Evaluate the impact of the first phase before committing to further pay increases.

• If affordability is a concern, explore phased salary increases.

• Combine modest pay rises with non-monetary benefits.

Final Thoughts

SMEs must navigate 2025 pay reviews strategically, balancing financial constraints with employee expectations. By integrating salary benchmarking, alternative benefits, and clear communication, businesses can create a sustainable and competitive compensation model. SMEs must take a strategic, balanced approach to pay reviews in 2025. While economic factors may push employees to seek higher salaries, businesses have multiple options beyond direct pay increases.

By combining competitive salaries with alternative benefits—such as bonuses, additional leave, career development, and profit-sharing—SMEs can maintain employee satisfaction while protecting long-term financial sustainability.

At Kingswood Group, we help businesses design tailored pay and reward strategies. If you need support in structuring your 2025 pay review process, contact us today to explore bespoke solutions that align with your business objectives.

About Kingswood Group

Kingswood Group provides expert HR solutions tailored to SMEs. We specialise in pay and benefits strategy, compliance, and employee engagement. Our mission is to help businesses build high-performing teams through effective HR planning.

For more insights, visit Kingswood Group or contact us to discuss your pay review strategy for 2025.

As the workplace continues to evolve, HR training has never been more critical for SMEs. Rapid regulatory changes, shifting employee expectations, and the need for competitive talent retention strategies make HR knowledge a business necessity rather than an afterthought. However, many SMEs struggle to implement effective HR training due to cost, time constraints, and engagement challenges. Enter blended learning—a strategic approach that integrates digital convenience with human interaction, delivering both flexibility and impact.

The Shift Towards Blended Learning: A Game Changer for SMEs

Traditional HR training models no longer suffice in a fast-paced, technology-driven world. Blended learning—a mix of self-paced online courses and interactive virtual or in-person workshops—addresses these gaps, ensuring that SMEs can train employees effectively without disrupting day-to-day operations.

Why SMEs Need a New Approach

✅ Agility in Training Delivery – Online modules allow employees to learn at their own pace, while live workshops reinforce learning through real-time application.
✅ Optimized Costs & Resources – Reduces travel expenses, trainer fees, and productivity losses associated with full-day in-person training.
✅ Sustained Engagement & Knowledge Retention – A mix of interactive formats keeps learners engaged, increasing information retention compared to traditional training models.
✅ Ensuring Compliance with Evolving Employment Laws – SMEs can access instant updates through digital platforms, ensuring training is always aligned with legal standards.

The Power of Blended Learning in Compliance & People Management

For SMEs, staying compliant with UK employment laws is non-negotiable. But compliance training often falls into the “tick-box” category, leading to disengagement and minimal retention. Blended learning transforms compliance from an obligation into a strategic asset.

✅ Online Modules Provide On-Demand Legal Updates – Keeping HR teams and managers informed about the latest changes in employment law.
✅ Live Expert-Led Sessions for Practical Application – SMEs can discuss real-world HR scenarios, ask questions, and receive immediate guidance.
✅ Integration of Case Studies & Scenario-Based Learning – Enabling employees to apply knowledge to realistic workplace challenges, improving their decision-making capabilities.

By blending theoretical knowledge with practical engagement, SMEs can mitigate risks, enhance workplace policies, and foster a culture of compliance and responsibility.

Cost-Efficiency: The Business Case for Blended Learning in SMEs

Many SMEs perceive HR training as a costly and time-intensive endeavor, leading to inconsistent training practices. Blended learning directly addresses these challenges by offering a scalable and cost-effective model that aligns with business needs.

• Reduces Training Downtime: Employees can complete online modules in their own time, avoiding productivity loss.

• Eliminates Unnecessary Costs: No expensive travel, accommodation, or venue hire—training happens digitally, in-office, or through remote collaboration.

• Scales with Business Growth: As SMEs expand, training needs evolve. Blended learning is adaptable, allowing businesses to seamlessly upskill their teams without major investment in new infrastructure.

Kingswood Group’s Approach: Tailored Blended Learning for SMEs

Kingswood Group is revolutionizing HR training for SMEs through a customized blended learning approach that integrates best-in-class digital training with expert-led discussions.

🔹 Tailored Online HR Training Modules – Covering everything from employment law to leadership development.
🔹 Live, Interactive Workshops – Virtual or in-person sessions that bring learning to life with case studies and problem-solving exercises.
🔹 Continuous Learning & Compliance Updates – Ensuring SMEs stay ahead of HR and legal requirements with real-time knowledge updates.
🔹 Flexible Access for SME Leaders & Employees – Enabling businesses to provide professional development without disrupting daily operations.

Through this approach, SMEs gain actionable insights, compliance confidence, and the tools to build resilient HR functions.

Actions You Can Take Today

Taking the next step towards effective HR training doesn’t have to be overwhelming. Here’s how you can get started:

• Assess Your Current Training Needs – Identify gaps in your HR training programs to determine how blended learning can enhance your team’s capabilities.

• Engage Your Team – Consult with employees and managers to understand their preferred learning styles and specific areas where support is needed.

• Start with a Pilot Program – Implement a small-scale blended learning initiative, gather feedback, and refine the approach before a full-scale rollout.

• Leverage Technology – Utilize digital platforms that offer flexible, on-demand training modules tailored to SMEs.

• Partner with Experts – Collaborate with trusted providers like Kingswood Group to access high-quality blended learning solutions designed for SMEs.

Investing in blended learning today will future-proof your business, enhance compliance, and create a culture of continuous development.

Final Thoughts: Why SMEs Must Embrace Blended Learning

In a world where regulatory landscapes shift overnight and employee expectations continue to rise, HR training can no longer be an afterthought. Blended learning isn’t just an alternative to traditional training—it’s the future of strategic workforce development.

By integrating self-paced learning with expert-led discussions, real-world application, and continuous updates, SMEs can future-proof their workforce, improve compliance, and drive business success.

The time to transform HR training is now. Explore Kingswood Group’s Blended Learning Solutions today.

The concept of a four-day workweek has been gaining momentum in the UK, driven by its potential to improve employee well-being, productivity, and work-life balance. While large organisations may have the resources to experiment with such initiatives, SMEs face unique challenges and opportunities. This article explores how small and medium-sized businesses can successfully adopt and adapt to this model.

The Potential Benefits for SMEs

Adopting a four-day workweek can yield significant advantages for SMEs, such as:

• Increased Productivity: Studies show that working fewer hours can boost focus and efficiency during the working days.

• Enhanced Employee Well-Being: A shorter workweek allows employees to rest, recharge, and attend to personal responsibilities, improving morale and reducing burnout.

• Attracting Talent: Offering a modern, flexible work arrangement can make SMEs more competitive in attracting and retaining top talent.

• Reduced Costs: Some businesses may save on operational costs, such as utilities, by closing their premises an additional day each week.

Challenges to Overcome

However, implementing a four-day workweek comes with its own set of hurdles, including:

• Maintaining Customer Satisfaction: Businesses must ensure that clients and customers receive uninterrupted service, which might require careful planning and communication.

• Workload Distribution: SMEs often operate with lean teams, so ensuring that all essential tasks are completed within fewer hours can be daunting.

• Change Resistance: Employees and management may initially resist this shift, especially if there are concerns about workload and job security.

Case Studies: Success Stories

1. South Cambridgeshire District Council
In January 2023, South Cambridgeshire District Council initiated a three-month trial of a four-day workweek for desk-based staff, reducing their hours to 30 per week without any loss of pay. The trial was deemed successful, leading to an extension for a further year and an expansion to include other teams. Performance metrics showed substantial improvements in nine out of 16 monitored areas, and the council saved £333,000 by reducing reliance on agency staff. Employee health and well-being also saw significant positive impacts. (Learn more)

2. Awin
Awin, a global affiliate marketing company, adopted a four-day workweek for all its staff, including those in the UK. The company reported that this change led to increased productivity, improved employee satisfaction, and better work-life balance. Awin’s case demonstrates that even larger SMEs can successfully implement a reduced workweek without compromising performance. (Learn more)

3. Crate Brewery
Crate Brewery, based in Hackney, East London, participated in a six-month trial of a four-day workweek starting in late 2024. The brewery aimed to improve work-life balance for its employees and gain a competitive advantage in staff recruitment and retention. While specific outcomes of the trial are pending, the initiative reflects a growing trend among SMEs in the hospitality sector to explore flexible working arrangements. (Learn more)

Practical Tips for Piloting a Four-Day Workweek

1. Start with a Trial Period: Begin with a 3-6 month pilot to assess feasibility and gather data on productivity and employee satisfaction.

2. Engage Your Team: Involve employees in the planning process to understand their concerns and gather ideas on how to make the model work.

3. Adjust Hours or Schedules: Depending on your business needs, consider extending daily hours or implementing a rota system to maintain coverage.

4. Use Technology: Automate repetitive tasks and adopt productivity tools to maximise efficiency during working hours.

5. Monitor and Evaluate: Collect feedback from employees and customers regularly to identify and address any issues.

Legal and HR Considerations

Before making the transition, SMEs must address the following:

• Employment Contracts: Review and amend contracts to reflect changes in working hours or patterns.

• Pay and Benefits: Decide whether salaries will remain the same or be adjusted for reduced hours.

• Health and Safety: Ensure that longer daily hours (if applicable) do not compromise employee well-being.

• Compliance: Stay compliant with UK employment laws, including the Working Time Regulations and any industry-specific guidelines.

Conclusion: Is It Right for Your Business?

While a four-day workweek can transform how SMEs operate, it’s not a one-size-fits-all solution. By carefully planning and trialling the model, businesses can identify what works best for their unique needs. Whether it’s improving employee satisfaction, cutting costs, or staying ahead in the competition for talent, the benefits may far outweigh the challenges.

The third Monday in January, often referred to as ‘Blue Monday’, has gained a reputation as a particularly challenging day for many. While the term originally stemmed from a marketing campaign, it shines a spotlight on real struggles employees face during this time of year. From financial stress and seasonal gloom to post-holiday fatigue, January can feel like an uphill battle.

For employers, it’s an opportunity to step in, support their teams, and create a positive start to the year.

Understanding the January Blues January can be tough for employees due to:

• Financial Strain: Increased costs from the festive season paired with January bills.

• Winter Challenges: Short days, cold weather, and limited sunlight can impact mood and energy levels.

• New Year Fatigue: The pressure to maintain resolutions or get back to routines can feel overwhelming.

• Mental Health Declines: Seasonal Affective Disorder (SAD) and general low morale are common this time of year.

The Workplace Impact When employees face these challenges, businesses often experience:

• Lower Productivity: Low motivation can reduce focus and output.

• Increased Absenteeism: Stress or seasonal illnesses can lead to more time off.

• Team Disengagement: Collaboration and morale may suffer.

Practical Steps to Support Employees Rather than viewing January as a hurdle, employers can use it as an opportunity to uplift their teams. Here’s how:

1. Foster a Positive Workplace Environment:

   • Organise a “Blue Monday Breakfast” or social coffee hour to create a sense of community.

   • Introduce light-hearted activities, such as quizzes or team-building challenges, to boost morale.

2. Encourage Open Communication:

   • Check in with employees regularly to understand their challenges and offer support.

   • Normalise conversations around mental health by sharing resources and providing safe spaces for discussions.

3. Promote Wellbeing Initiatives:

   • Offer access to Employee Assistance Programmes (EAPs) for confidential professional support.

   • Provide practical resources on stress management, financial wellbeing, and maintaining healthy habits.

4. Flexibility Is Key:

   • Allow remote working or flexible hours to help employees find balance.

   • Encourage outdoor breaks to improve energy and mood.

5. Introduce Low-Cost Perks:

   • Provide free treats, wellbeing gifts, or even motivational talks.

   • Run workshops on mindfulness or stress management to empower employees.

The Kingswood Group Difference At Kingswood Group, we understand the importance of employee wellbeing and its impact on business success. Our tailored HR solutions and wellbeing programmes are designed to help businesses:

• Boost employee engagement and morale.

• Reduce absenteeism and enhance productivity.

• Create a supportive, thriving workplace culture.

With tools like the Breathe HR platform, bespoke wellbeing initiatives, and expert consultancy, we’re here to help your business shine in every season.

Take Action Today Don’t let the January blues hold your business back. Get in touch with Kingswood Group to explore how we can support your team and create a workplace where everyone thrives. Whether it’s a one-off programme or ongoing HR support, we’re your trusted partner for success.

Navigating today’s competitive job market requires accurate and up-to-date data. The Kingswood Group Salary Survey provides valuable insights into HR salaries and trends across Essex and the surrounding areas, empowering businesses to make informed decisions about attracting and retaining talent.

Key Trends in the HR Market

The survey highlights several important trends shaping the HR landscape:

1. Growing Demand for Specialists
   Roles in Talent Acquisition and Reward Analysis are increasingly sought after as businesses compete for the best talent in a tightening labour market.

2. Sector-Specific Variability
   Salaries can differ significantly by industry, with financial services and technology sectors often offering higher pay ranges compared to others.

3. The Rise of Flexible Working
   Remote and hybrid working options have shifted from being a perk to an expectation. Businesses offering these arrangements are more likely to secure top-tier candidates.

4. Enhanced Benefits on the Rise
   Competitive benefits packages—including private healthcare, performance bonuses, and additional holiday allowances—are becoming essential for retaining staff.

Why These Trends Matter

Understanding these trends allows employers to benchmark their offers against market norms, helping them stand out in a competitive landscape. Offering the right combination of salary, benefits, and flexibility not only attracts skilled professionals but also builds loyalty and reduces turnover.

Explore the Full Salary Data

The survey provides detailed salary benchmarks for a wide range of HR roles, from entry-level positions to senior leadership. These insights are invaluable for employers reviewing their remuneration strategies or planning future recruitment.

For a complete overview of HR salaries and trends, download the full Kingswood Group Salary Survey, included with this article.

By leveraging this data, businesses can make informed decisions to stay competitive in attracting and retaining HR talent in the East of England.

To download the full survey, please click here: Kingswood Salary Survey

For small businesses, every pound counts, and so does every productive hour. Yet, many business owners unknowingly face a silent drain on their resources: poor employee well-being. The health and happiness of your team directly impact your business’s success, but how often is this a top priority?

The Reality for Small Businesses

Small businesses make up over 99% of the UK’s private sector, employing 61% of the total workforce. With smaller teams and tighter budgets, they often feel the impact of absenteeism and reduced productivity more acutely than larger organisations.

Recent data highlights the challenge:

• Poor mental health costs UK businesses £51 billion annually, according to a Deloitte report, with presenteeism (working while unwell) being the biggest contributor.
• In 2022, the average UK employee took 6.7 sick days, nearly double the rate in 2018, as reported by The Times.
• Employees lose an average of 49.7 productive days per year due to health-related issues, equating to nearly 20% of their working time (Vitality).

For small businesses relying on every team member pulling their weight, these statistics highlight an often-overlooked problem.

Why Well-Being Matters for Small Teams

In a small business, every employee plays a pivotal role. When one team member struggles, the effects ripple through the entire team, resulting in:

• Increased Workloads: Overburdening other employees, potentially leading to burnout and reduced morale.
• Higher Turnover Rates: Employees facing unresolved stress or poor well-being are more likely to leave, costing time and money to replace.
• Stifled Growth: A stressed team is less creative and productive, slowing innovation and progress.

With limited resources, small businesses may struggle to address these issues effectively, but ignoring them is no longer an option.

A Practical Solution: Employee Assistance Programmes (EAPs)

Small businesses don’t need lavish budgets to prioritize well-being. Practical, cost-effective solutions like Employee Assistance Programmes (EAPs) can make a significant impact. EAPs offer confidential, 24/7 support for employees, including:

• Counselling Services: Helping employees manage stress, anxiety, and personal challenges.
• Practical Support: Advice on financial management, legal concerns, and family challenges.
• Proactive Resources: Tools and guidance to help employees stay healthy and engaged.

The investment pays off. A study by the Employee Assistance Professionals Association (EAPA) found that UK employers see an average ROI of £10.85 for every £1 spent on EAPs. This is a clear indication of their effectiveness, even for businesses with smaller budgets.

Steps for Small Business Success

Improving employee well-being doesn’t have to be complicated or expensive. Here are some immediate actions small businesses can take:

1. Foster Open Communication: Create an environment where employees feel safe discussing concerns and seeking support.
2. Encourage Flexibility: Offer flexible working arrangements to help employees balance personal and professional responsibilities.
3. Implement an EAP: Provide your team with access to professional, confidential support through a tailored Employee Assistance Programme.

Take the First Step

For small businesses, prioritizing employee well-being isn’t just the right thing to do—it’s a strategic move that improves productivity, reduces absenteeism, and strengthens loyalty. Investing in solutions like an EAP not only supports your team but also safeguards your bottom line.

If you’re ready to explore a practical, affordable way to support your team, Kingswood Group’s Employee Assistance Programme (EAP) is designed to meet the needs of small businesses. Learn more here.

The Neonatal Care (Leave and Pay) Act 2023 – effective from April 2025

In April 2025, the new Neonatal Care (Leave and Pay) Act 2023 will finally become effective.

The policy, which is designed to support employees who have parental or a personal relationship with a baby needing neonatal care, will mean those eligible can take at least one week and up to 12 weeks of paid leave. This will be in addition to other entitlements such as paternity, maternity and shared parental leave.

Under the Act, the time off must be taken in full weeks, in line with other statutory parental leave, from the time the baby has been in neonatal care for seven continuous days up to a maximum of 12 weeks.

Entitlements and eligibility

This day-one right, which will apply to each parent individually (so up to a maximum of 12 weeks per parent), will be confirmed where a baby has remained in neonatal care within 28 days after birth and has been there for seven or more consecutive days. The parent must also be an employee, have responsibility for the upbringing of – or main caring responsibilities for – the child in neonatal care, have given correct notice to their employer  and have a child meeting the relevant requirements regarding neonatal care.

Employers will, in due course, be expected to update employee contracts (as this is a new paid entitlement) as well as introduce a policy setting out the procedural steps ahead of the go-live date in April next year.  However, the procedural steps, such as how much notice must be given, what happens for multiple births (e.g. twins, triplets etc) have yet to be made clear and further instruction is awaited to the finer details.

Right to suffer no detriment

Once the right is in force, the new law will apply to all employers and employees will be protected from being subjected to a detriment because they took or sought to take neonatal care leave. Employees (regardless of their length of service) will also have additional protections from being unfairly dismissed if the reason for the dismissal is connected with the fact that they took or sought to take neonatal care leave. A dismissal of this nature will fall within the ‘automatically unfair dismissal’ category.

If you need help with preparing for the new legislation from next April, including how to apply changes with employment contracts, policies or handbooks, contact the Kingswood HR team for a FREE no obligation discussion to learn how we support businesses to ensure they achieve full HR compliance.

As a small business owner, managing human resources (HR) can feel like juggling multiple priorities while striving for growth. 2025 brings new opportunities and challenges, and staying ahead means turning these into strategic advantages. Here are the top 10 HR priorities to focus on, along with actionable steps to keep your business thriving:

1. Adapting to Legislative Changes

Why It Matters: Legislative updates, such as adjustments to the national minimum wage and changes to parental leave policies, can significantly impact payroll and employee benefits. Compliance not only avoids fines and legal challenges but also builds trust with employees, enhancing retention and workplace reputation.

Action Steps:

• Conduct regular audits of your HR policies to align with legal updates.

• Partner with an HR consultancy to stay informed about changes in employment law.

• Offer training sessions for managers on compliance best practices to avoid employee disputes.

2. Embracing HR Technology

Why It Matters: Automation reduces administrative burdens, allowing HR teams to focus on strategic initiatives like talent development. Adopting tools like AI-powered recruitment can improve hiring efficiency and retention rates, giving you a competitive edge.

Action Steps:

• Invest in tools such as payroll automation and performance management systems.

• Pilot a small-scale implementation of an applicant tracking system before scaling it.

• Train your HR team on leveraging AI for talent acquisition and workforce planning.

3. Enhancing Employee Wellbeing

Why It Matters: Wellbeing programmes lower absenteeism, increase productivity, and improve morale. SMEs that prioritise wellbeing often see stronger employee loyalty, reducing costly turnover.

Action Steps:

• Introduce a wellbeing allowance or access to Employee Assistance Programmes (EAPs).

• Conduct employee surveys to identify wellbeing gaps and tailor solutions.

• Schedule regular workshops on mental health, resilience, and financial planning.

4. Upskilling and Reskilling Your Workforce

Why It Matters: The pace of technological change requires a skilled and adaptable workforce. Upskilling reduces recruitment costs, boosts employee satisfaction, and ensures your team remains competitive in the market.

Action Steps:

• Identify key skills gaps through a workforce analysis.

• Create development plans using e-learning platforms or on-the-job training.

• Align training programmes with business objectives and emerging industry needs.

5. Promoting Diversity and Inclusion

Why It Matters: Inclusive workplaces attract top talent, foster innovation, and improve decision-making. Compliance also reduces the risk of discrimination claims, protecting your business financially and reputationally.

Action Steps:

• Audit recruitment practices to eliminate unconscious bias.

• Set measurable diversity and inclusion goals for leadership and the broader workforce.

• Foster an inclusive culture with training, mentoring programmes, and diversity celebrations.

6. Offering Flexible Working Arrangements

Why It Matters: Flexibility enhances work-life balance, attracting and retaining top talent. Businesses that support hybrid working report higher engagement, increased productivity, and improved employee satisfaction.

Action Steps:

• Survey employees to understand their preferred working arrangements.

• Update contracts and policies to reflect hybrid or remote options.

• Invest in technology to support seamless remote collaboration and productivity tracking.

7. Strengthening Health and Safety

Why It Matters: A robust health and safety culture protects employees, ensures compliance, and enhances morale. Failure to comply with workplace safety regulations can lead to costly legal actions and lost productivity.

Action Steps:

• Schedule regular health and safety assessments to identify risks.

• Provide training on handling emergencies and reporting hazards.

• Review and update policies to align with post-pandemic workplace safety standards.

8. Managing Economic Uncertainty

Why It Matters: Economic resilience minimises disruptions and ensures business continuity. Proactively managing workforce planning and financial resources helps you stay agile in uncertain markets.

Action Steps:

• Optimise workforce planning to avoid overstaffing or skill shortages.

• Diversify revenue streams to reduce reliance on a single market.

• Build an emergency fund to manage unforeseen financial pressures.

9. Boosting Employee Engagement

Why It Matters: Engaged employees drive better performance, creativity, and loyalty. Strong engagement strategies also enhance your employer brand, making recruitment more efficient and cost-effective.

Action Steps:

• Implement a recognition programme to celebrate employee contributions.

• Conduct regular 1:1 meetings to understand employee concerns and aspirations.

• Offer growth opportunities through internal promotions, mentoring, and tailored development plans.

10. Preparing for Organisational Growth

Why It Matters: Scalable HR systems ensure smooth expansion without compromising employee experience. Preparing for growth also helps attract investors and partners by showcasing operational readiness.

Action Steps:

• Review your current HR software to ensure it can scale with your business needs.

• Develop an onboarding process tailored to high-volume recruitment scenarios.

• Align HR strategies with your business’s five-year growth plan and include measurable KPIs.

Partnering for Success

The path to success is easier with expert guidance. At Kingswood Group, we provide tailored HR solutions designed to help SMEs like yours thrive. Whether it’s staying compliant, boosting employee engagement, or planning for growth, our team is here to support you every step of the way.

2025 presents an opportunity to transform your HR function into a competitive advantage. Contact Kingswood Group today to ensure your business is ready to thrive in the year ahead.

In today’s fast-paced business world, employee engagement has become a cornerstone of organisational success. But it’s no longer just about keeping employees satisfied—it’s about creating a thriving, connected workforce where every individual feels empowered to deliver their best.

As the world of work continues to evolve, so too must our approach to engagement. The question is: are you ready to reimagine how your organisation connects with its people?

Why Employee Engagement Matters

Engaged employees don’t just show up—they bring energy, commitment, and creativity to their roles. They’re more productive, innovative, and loyal, driving business success and elevating workplace culture.

The benefits are clear:

• Increased Retention: Engaged employees are far less likely to seek opportunities elsewhere.
• Enhanced Productivity: A motivated workforce can improve company output significantly.
• Improved Culture: Engagement fosters collaboration, positivity, and a sense of belonging.

However, building engagement isn’t without its challenges.

The Modern Workplace: A New Set of Expectations

The workplace has transformed dramatically over the past decade. Employees now expect more than a pay cheque; they seek purpose, flexibility, and a meaningful connection to their work.

Key trends shaping engagement include:

• Hybrid and Remote Work: Flexible working has become the norm, requiring creative ways to maintain connection and collaboration.
• Generational Shifts: Younger workers value purpose, development, and a sense of impact, while established professionals seek stability and recognition.
• Digital Expectations: Employees increasingly look to technology for streamlined communication, feedback, and professional growth.

Organisations must adapt to meet these expectations or risk losing their top talent.

Strategies for Building a Thriving Workforce

So, how can businesses cultivate an engaged and motivated workforce? Here are some practical strategies to consider:

1. Foster a Culture of Communication
   Open, two-way communication is the foundation of engagement. Regular check-ins, feedback opportunities, and employee listening forums can help ensure everyone feels heard and valued.

2. Recognise and Reward Contributions
   Acknowledging achievements, both big and small, can significantly boost morale. From a simple “thank you” to formal recognition programmes, showing appreciation goes a long way.

3. Invest in Employee Development
   Offering learning opportunities and clear career progression demonstrates a commitment to your employees’ growth, helping them stay engaged and motivated.

4. Prioritise Wellbeing
   A holistic approach to wellbeing—including mental, physical, and emotional health—ensures employees feel supported and able to perform at their best.

5. Leverage Technology Thoughtfully
   The right digital tools can revolutionise engagement, making it easier to collect feedback, track progress, and deliver personalised experiences that resonate with your workforce.

Measuring Engagement Effectively

What gets measured gets managed. To drive meaningful change, organisations must understand what’s working—and what’s not—when it comes to engagement. Regular pulse surveys, performance analytics, and open feedback loops can provide actionable insights to inform strategy and decision-making.

Building Engagement for the Future

Engagement isn’t a one-time initiative; it’s a continuous process that evolves alongside your workforce. By fostering open communication, recognising achievements, and embracing modern solutions, organisations can build thriving workplaces that stand the test of time.

The future of employee engagement is here. Are you ready to embrace it?

How to Navigate the Christmas Party Season: Advice for Employers

The Christmas party season is a highlight of the year for many teams—a chance to celebrate achievements, strengthen relationships, and build morale. But for employers, it can also be a time fraught with potential challenges, from managing behaviour at events to ensuring inclusivity.

Planning ahead and setting clear expectations can help make your festive celebrations a success for everyone involved. Here’s our advice for navigating the Christmas party season with confidence and professionalism.

1. Set Expectations Early

While it may be ‘the most wonderful time of the year,’ it’s important to remind employees that work events, even festive ones, still require professional behaviour. A gentle communication ahead of the party can go a long way in setting the right tone.

You don’t need to be overly formal—a friendly email or announcement outlining key expectations can suffice. Cover topics such as:

• Respectful behaviour towards colleagues and guests.
• Appropriate consumption of alcohol.
• Reiterating your policies on harassment and inclusion.

Framing this as a reminder rather than a list of rules helps set the tone without dampening the festive spirit.

2. Be Inclusive in Your Planning

A Christmas party should be an opportunity for everyone to feel included and valued, regardless of their beliefs, dietary preferences, or social comfort levels. When organising your event, consider:

• Providing non-alcoholic drink options.
• Offering a variety of food to cater to dietary restrictions.
• Avoiding overly religious themes to respect diverse beliefs.

Inclusivity isn’t just about the event itself; it’s also about recognising that not everyone may want to attend. Some employees may prefer not to participate in large social gatherings, and it’s important to respect their choice without judgment.

3. Manage Alcohol Consumption Responsibly

Alcohol often features heavily at Christmas parties, but excessive drinking can lead to inappropriate behaviour and regrettable incidents. To mitigate this risk:

• Consider limiting the free bar or providing drink vouchers.
• Encourage team leaders to model responsible behaviour.
• Ensure soft drinks and water are readily available.

If you’re hosting the party at an external venue, speak with the staff about monitoring alcohol consumption and stepping in if necessary.

4. Address Health and Safety

While Christmas parties are meant to be fun, employers are still responsible for ensuring the safety of their team. Take steps to mitigate risks, including:

• Checking the venue for potential hazards, such as poorly lit areas or slippery floors.
• Providing information about safe transport options after the event, such as local taxi numbers or reimbursement for rides.
• Avoiding activities that might lead to injury or discomfort, such as risky games or excessive physical challenges.

By taking these precautions, you demonstrate care for your employees’ well-being while avoiding potential liability.

5. Reinforce Policies on Workplace Behaviour

Sometimes, the lines between professional and social boundaries blur during Christmas parties, leading to behaviour that wouldn’t be acceptable in the workplace. This is a good time to reiterate your organisation’s policies on bullying, harassment, and discrimination.

If an issue does arise, address it promptly and in line with your procedures. Handling incidents professionally and consistently will protect your company culture and demonstrate that poor behaviour has no place in your organisation.

6. Show Appreciation

Amid all the planning, don’t lose sight of the purpose of the celebration—to thank your team for their hard work over the year. Use the event as an opportunity to express your appreciation, whether through a speech, individual recognition, or gestures like personalised gifts.

A little gratitude goes a long way in making employees feel valued and motivated as they head into the new year.

7. Reflect and Plan Ahead

After the festivities, take the time to review how the event went. Gather feedback from employees to understand what they enjoyed and what could be improved for future occasions. This reflection can help you make your celebrations even more inclusive, enjoyable, and successful next year.

Making the Season Merry and Bright

The Christmas party season is a wonderful opportunity to bring your team together, celebrate your successes, and end the year on a high note. With thoughtful planning, clear communication, and a focus on inclusivity, you can ensure your festive events are enjoyable for everyone—and avoid any awkward moments under the mistletoe.

At Kingswood Group, we’re here to support you with practical HR advice to help you manage your people effectively, whatever the season. If you need assistance with policies, compliance, or workplace culture, get in touch with us today.

In today’s rapidly evolving workplace, HR teams are being asked to do more than ever before. From managing employee data to driving strategic initiatives, the demand for efficiency and insight has never been greater. Yet, many organisations are still relying on outdated processes and scattered systems that hold them back.

This is where a centralised HR database comes in. Far from being just an admin tool, it’s a game-changer that can transform how your business operates. It’s not about keeping up; it’s about getting ahead.

Let’s explore why investing in an HR database isn’t just a good idea—it’s essential for businesses looking to thrive.

1. Cutting Through the Chaos: Why Centralisation Matters

Every HR professional knows the pain of trawling through emails, spreadsheets, and filing cabinets to find a crucial piece of information. It’s time-consuming, frustrating, and frankly, unnecessary.

A centralised HR database solves this by bringing all your employee data together in one secure place. Whether it’s contracts, performance reviews, or holiday requests, everything you need is at your fingertips. For businesses managing remote or hybrid teams, this kind of accessibility isn’t just helpful—it’s critical.

At Kingswood Group, we’ve seen first-hand how centralising HR data can transform teams. It saves hours of admin, reduces errors, and ensures everyone is working with the same up-to-date information.

2. Automate to Innovate: Freeing HR for What Really Matters

How often do we hear HR professionals say, “If only I had more time”? It’s a sentiment we all recognise. So much of HR’s potential to make a strategic impact is swallowed up by routine admin tasks like tracking absences, approving holidays, and chasing managers for overdue reviews.

An HR database can take this load off your plate. By automating these repetitive tasks, you’re free to focus on the bigger picture—whether that’s improving employee engagement, developing your talent pipeline, or creating a more inclusive workplace.

This isn’t just about saving time; it’s about enabling HR to lead from the front.

3. Turning Data into Decisions

Good decisions require good data, and in HR, that means more than just knowing who’s booked time off next week. It’s about seeing patterns and understanding trends. Why is turnover increasing in one department? How can we address absenteeism hotspots? Where should we focus our learning and development budget?

An HR database gives you the tools to answer these questions with confidence. Its reporting and analytics capabilities transform raw data into meaningful insights that drive change. At Kingswood Group, we believe that data-driven decisions are the key to building stronger, more resilient teams.

4. Staying on the Right Side of Compliance

Compliance is one of those areas where getting it right is non-negotiable. From GDPR to ever-changing employment laws, the stakes are high—and so is the admin burden.

With an HR database, you can ensure your records are accurate, your processes are consistent, and your data is stored securely. Many systems even update automatically to reflect the latest legal requirements, giving you peace of mind that you’re always on the right side of the law.

When compliance is built into your HR processes, you don’t just reduce risk—you build trust with your employees and stakeholders.

5. Built to Grow with You

Whether you’re a fast-growing start-up or an established organisation looking to scale, your HR needs are constantly evolving. The beauty of an HR database is its flexibility. It grows with you, adapting to new challenges and opportunities without missing a beat.

Need to onboard 50 new employees quickly? No problem. Expanding into new locations with varying employment laws? Easily managed. A scalable HR database ensures your systems won’t hold you back when your business is ready to move forward.

A Smarter Way to Work

An HR database isn’t just about tidying up your admin. It’s about giving your business the tools it needs to be smarter, faster, and more resilient. By centralising your data, automating routine tasks, and providing actionable insights, it empowers your HR team to focus on what they do best—looking after your people and driving your organisation forward.

At Kingswood Group, we work with businesses to implement practical, scalable HR solutions that make a real difference. We know the challenges you face because we’ve been there ourselves, and we’re here to help you find the right tools to overcome them.

Ready to make HR work smarter for your business? Get in touch today to find out how we can help you harness the power of an HR database.

How the 2024 Autumn Budget Impacts Employers: Key Changes, Practical Guidance, and New Insights 

Chancellor Rachel Reeves’ Autumn 2024 Budget introduces significant shifts that small business employers need to prepare for. Alongside increases to the National Minimum Wage (NMW), National Living Wage (NLW), and National Insurance Contributions (NICs), the budget also outlines adjustments to capital gains tax reliefs, fuel duty, and more. Here’s an updated breakdown of the main announcements and practical actions based on the latest information. 

Key Budget Announcements and Practical Actions for Employers 

1. National Minimum Wage and National Living Wage Increases 

From April 2025, the National Living Wage for employees aged 21 and over will rise to £12.21 per hour—a 6.7% increase. Minimum wage increases will also apply across other age brackets, including those aged 18–20, whose rate will rise from £8.60 to £10.00 per hour, and apprentices, who will see an increase from £6.40 to £7.55 per hour. These are some of the largest increases on record, marking a step toward Labour’s goal of a “genuine living wage.” 

Action Steps: 

• Budget for Wage Increases: Assess the impact of these wage increases on your payroll. For businesses relying on minimum-wage staff, the increase may necessitate a review of staffing needs or a focus on operational efficiencies to maintain margins. 

• Plan for Productivity Gains: Consider strategies to boost productivity, such as implementing process improvements or adopting digital tools. These measures can help offset the impact of rising wages on your business. 

2. National Insurance Contributions and Updated Employer Allowances 

The budget confirms that Employers’ National Insurance Contributions will increase by 1.2 percentage points, reaching a rate of 15% from April 2025. In addition, the threshold at which NICs become payable will drop significantly, from £9,100 to £5,000, which will raise payroll costs for many small businesses. However, the Employment Allowance will double from £5,000 to £10,500, allowing more businesses to avoid NICs entirely. 

Action Steps: 

• Adjust Payroll Projections: Calculate how the NIC increase and lowered threshold will impact your payroll and budget accordingly. For businesses affected by these changes, reallocating resources or finding efficiencies in other operational areas can help balance the added costs. 

• Utilise the Employment Allowance: Confirm eligibility for the increased Employment Allowance, which may reduce or eliminate NIC liabilities. This exemption can create breathing room for small businesses facing rising costs elsewhere. 

3. Capital Gains Tax Adjustments and Business Asset Disposal Relief (BADR) Insights 

The budget indicates potential changes to Capital Gains Tax (CGT), including possible increases to CGT rates and adjustments to Business Asset Disposal Relief (BADR). Speculation points to a gradual alignment of CGT with income tax rates, which would increase tax burdens for business owners planning asset sales. The government may also adjust BADR, raising tax rates on gains from business disposals. 

Action Steps: 

• Consult with a Tax Advisor: Business owners planning asset sales or business exits should work with a tax advisor to understand how potential CGT rate hikes or BADR adjustments could impact their financial outcomes. Exploring strategic timing for these transactions may help minimise tax liabilities under current conditions. 

4. Enhanced Capital Allowances and Full Expensing Clarity 

The budget pledges to retain capital allowances and the full expensing regime, allowing businesses to write off qualifying investments in plant and machinery. This support will help businesses invest tax-efficiently, especially as Labour’s corporate tax roadmap includes a cap on corporation tax at 25%. 

Action Steps: 

• Plan Capital Investments Strategically: Schedule investments in qualifying assets, such as equipment or digital infrastructure, to maximise available allowances. Leveraging these allowances can help balance out new costs associated with wage and NIC increases. 

• Monitor Further Updates on Full Expensing: Since Labour has committed to stability on full expensing, keep an eye on potential updates that may expand this to leased assets, which could provide additional tax-saving opportunities. 

5. Worker Classification Compliance and Payroll Adjustments 

The budget introduces stricter guidelines on “false self-employment,” requiring businesses that rely on contractors to review classification criteria. Employers may need to reclassify some contractors as employees, increasing obligations around payroll taxes, benefits, and compliance. 

Compliance Checklist: 

• Review Contractor Arrangements: Conduct an internal audit to determine if current contractor agreements align with new classification rules. Reclassifying certain roles as employee positions may now be required, so consult with HR or legal advisors to assess compliance. 

• Budget for Additional Payroll Costs: For businesses likely to reclassify contractors, prepare for added payroll costs, including NICs and employee benefits. 

Additional Budget Provisions and Suggested Responses 

In addition to direct employer-related changes, the budget includes other policies relevant to small businesses. Here are key updates and actionable insights: 

• Fuel Duty and Transportation Costs: The possible end to the fuel duty freeze could raise operational costs, particularly for logistics-focused businesses. Explore options for more fuel-efficient vehicles or evaluate available subsidies for green technology to offset fuel costs. 

• Late Payment Regulations for Government Contracts: New rules will exclude companies with late payment records from bidding on large government contracts if they fail to pay suppliers within 45 days. Implement clear payment terms and credit policies to avoid disqualification and maintain a healthy cash flow. 

Planning for a Resilient Future with the 2024 Budget 

The 2024 Autumn Budget presents both challenges and opportunities for small business employers. By budgeting for wage and NIC adjustments, leveraging training and capital investment incentives, and ensuring compliance with classification updates, small business owners can position their companies to weather these fiscal shifts. Working closely with advisors and proactively adjusting strategies will help employers navigate Labour’s fiscal policies while maintaining a strong foundation for future growth. 

At Kingswood Group, we believe that exceptional client service is at the heart of what we do. This commitment was validated by the recent results from our Client Satisfaction and Feedback Survey conducted in October 2024, with overwhelmingly positive responses reflecting the quality of our support and dedication.

Highlights from the Survey

Our clients rated their experiences across key service areas, demonstrating that our commitment to excellence is well-recognised:

• Overall Satisfaction: A remarkable 95% of respondents rated their overall satisfaction as “very satisfied,” with frequent commendations for our team’s responsiveness and knowledge.

• Service Quality and Expertise: Kingswood Group prides itself on providing reliable, informed guidance tailored to our clients’ specific needs. According to the survey, 100% of respondents expressed high satisfaction with the quality of service, professionalism, and our team’s understanding of their unique business contexts.

• Ease of Communication: An impressive 90% of clients found it “very easy” to reach their dedicated consultants whenever they needed support. Our team’s proactive communication and fast response times were consistently highlighted as standout features.

• Personalised Support: Kingswood consultants were frequently praised for their adaptability and personal touch. Over 85% of clients specifically mentioned the tailored advice they received, highlighting how our team goes beyond standard solutions to meet specific needs.

• Interest in Additional Services: As our clients’ businesses grow, many are looking to expand the range of HR services we provide. 60% of clients expressed interest in exploring additional services, including employee well-being, compliance management, and recruitment services, showing a demand for a broader partnership with Kingswood.

Continuous Improvement

Our survey also asked clients for suggestions on potential areas for improvement. A few respondents noted a desire for slightly more concise communication in complex advisory emails, and we are actively working to streamline this area. We take all feedback to heart and are committed to making any adjustments that enhance our clients’ experience.

Going Forward

We are immensely proud of these results, which reaffirm our dedication to supporting clients in meaningful and impactful ways. Our team will continue to build on this strong foundation, ensuring that Kingswood Group remains a trusted partner that clients can rely on for strategic HR solutions.

We extend our gratitude to everyone who took part in this survey. Your feedback drives our progress, and we look forward to delivering even greater levels of service in the future. At Kingswood, you’re more than just a client – you’re a valued partner.

A report by the Institute for Public Policy Research (IPPR) has found that in 2023, the “hidden cost” of employee sickness reached £103bn in the UK – an increase of £30bn since 2018! The main cause of the cost increase was due to a decrease in productivity, with a lower proportion due to increased numbers of sick days. 

The study found that UK employees are more likely to work through their sickness, which is causing the dip in productivity and adding to the hidden cost. This is also known as ‘Presenteeism’ which refers to the lost productivity that occurs when employees are not fully functioning in the workplace because of an illness, injury, or other condition.

There are a number of reasons why employees feel pressured to come to work. This can be because of financial insecurity, for example, the employee has no entitlement to company sick pay and therefore continues working so there is no loss of earnings. 

Other factors contributing to presenteeism are bad workplace culture, with Managers putting pressure on employees to work through sickness; as well as a lack of understanding of long term health conditions that employee’s may be experiencing.  

How should sickness absence be managed?

Policies and Procedures: First things first, implement a robust sickness absence policy. Consider what your company trigger points will be or whether you will use the Bradford Factor Score. A qualified HR consultant can advise you on best practice and ensure your business is compliant. 

Leadership and Management: Ensure all your managers are on board with the absence management policy and procedure; It will not be effective without them. 

Learning and Development: Train all your managers on the new policy before applying it; You want to make sure the policy is understood by all. 

Informal meetings: Regular one to ones and completing return to work interviews after all absences is a great opportunity to learn more about your team, understand any underlying health conditions and will help you to proactively introduce any necessary adjustments that will facilitate attendance. 

Accessibility: Make sure the policy is accessible to all by displaying on a staff notice board or making it available electronically. Also consider how the policy will be viewed by those with a disability.

Reasonable Adjustments: Employers need to give careful consideration to reasonable adjustments when managing the sickness absence, in line with their policy, of an employee who has a known health condition. In ‘Powell v Secretary of State for Work and Pensions’ the employment tribunal ruled that the employer did not consider all reasonable adjustments when managing the employee’s sickness absence that was linked to their disability. Whilst the employer did sensibly adjust the trigger points in their sickness absence policy, to allow the employee more time to improve their attendance, they did not consider a further extension, and it was ruled the employee was unfairly dismissed. 

If you need further HR advice and guidance on managing sickness absence or training, please contact our HR team at Kingswood Group who are on hand to help. You can reach us via email on enquiries@kingswoodgroup.org or call us on 01245-204450.

Also, due to popular demand, on 23rd October 2024 we are hosting a free webinar on ‘Navigating Sickness Absence: Getting it Right’. We hope you can join us! Please visit our website to register your place today www.kingswoodgroup.org 

The Worker Protection (Amendment of Equality Act 2010) Act 2023, also known as Chapter 51 of the 2023 legislative updates, marks a significant step towards enhancing workplace protections against sexual harassment in the UK. This amendment introduces robust measures aimed at creating safer, more respectful work environments, addressing long-standing issues within the scope of the Equality Act 2010.

A critical component of this amendment, that comes into force in October 2024, is the enforcement of a proactive duty on employers to prevent sexual harassment. Previously, the duty was predominantly on employees to report incidents of harassment after they had occurred. The new amendment shifts this responsibility to employers obliging them to take all reasonable steps to actively implement preventative measures. The aim is to encourage a culture of respect and vigilance, thereby reducing the risk that sexual harassment would even take place.

Employers should consider their liability for third party harassment. Whilst it is not explicitly detailed in the amendment, under the Equality Act 2010, an employee could raise a successful claim for direct discrimination against their employer if, for example, it was shown that an employer’s failure to deal with third-party harassment was because of a protected characteristic. Equally, there may be situations in which third-party harassment could form the basis for an indirect discrimination claim, if Employers take no action at all to protect employees. 

Where an employment tribunal finds that to any extent there has been sexual harassment and the employer duty has been breached, then the tribunal may order an uplift of up to 25% to the compensation awarded, in respect of the sexual harassment claim.  

The current timeframe for raising a claim is three months. However, ACAS states that if a claim is not filed in time, then a tribunal may extend the time limit if it has just and equitable reasons to do so. They may consider the surrounding circumstances and the effect on the claimant to apply leniency. Furthermore, the Labour government are proposing to extend the timeframe for raising a claim to six months from the date of the last incident.

What should employer now do?

Under the Worker Protection (Amendment of Equality Act 2010) Act 2023, employers are required to take proactive and reasonable steps to prevent sexual harassment in the workplace. Here are some key measures that employers must implement:

1. Clear Anti-Harassment Policies: Employers should develop and maintain clear, comprehensive anti-harassment policies. These policies must define what constitutes sexual harassment, outline the procedures for reporting incidents, and detail the consequences for those in breach of the policy. The policies should be easily accessible to all employees and can form part of an existing company policy such as EDI, or Anti-Bullying and Harassment policy or it can be standalone.
2. Training and Education: Regular training sessions should be conducted for all employees, including management, to educate them about sexual harassment, the company’s policies, and the importance of maintaining a respectful workplace. Training should also include how to recognise and respond to harassment. This can also be covered in regular team meetings/briefings or ‘toolbox talks’.
3. Effective Reporting Mechanisms: Employers must establish reliable and confidential reporting mechanisms for employees to report incidents of harassment. This can include hotlines, online reporting systems, or designated team members within the organisation who are trained to handle such complaints. Keeping records of all complaints will allow businesses to spot trends and monitor actions.
4. Prompt and Thorough Investigations: When a report of sexual harassment is made, employers must promptly investigate the complaint. Investigations should be thorough, impartial, and conducted with sensitivity towards the complainant. Where a business does not have the capacity or training to undertake such a sensitive and often complex investigation, they can seek support from an independent and skilled investigator, typically appointed from an external provider to conduct the investigation on their behalf.
5. Support for Victims: Employers should provide support to victims of sexual harassment. This can include offering counselling services, making accommodations in the workplace if necessary, and ensuring the victim is not subject to retaliation. These support mechanisms can usually be provided if the employer has an Employee Assistance Programme, but separate counselling or support services can also be provided where the victims can go for help.
6. Regular Monitoring and Review: Employers should regularly review their anti-harassment policies and procedures to ensure they are effective. This includes monitoring the workplace climate, conducting employee surveys, and making necessary adjustments based on feedback and changes in the law.
7. Accountability for Third-Party Harassment: Employers must also take steps to prevent harassment by third parties, such as customers, clients, suppliers, or contractors. This can involve training employees on how to handle such situations and setting clear expectations with third parties about acceptable behaviour.
8. Senior Leadership & Management Commitment: The commitment to preventing sexual harassment must be demonstrated by the top management. This includes leading by example, enforcing policies consistently, and ensuring that the issue is given priority within the organisational culture.

By implementing these reasonable steps, employers will not only comply with the Worker Protection Act 2023 but also be cultivating a safer and more inclusive workplace environment.

For help with addressing any or all of the reasonable steps to implementing a safer, more inclusive workplace environment, please feel free to contact Kingswood Group who are on hand to help. You can reach out via email on enquiries@kingswoodgroup.org or call us on 01245-204450.

The new year brings with it lots of recruitment, which is such a positive task for a line manager but it can be stopped in its tracks when a COUNTER OFFER comes into play.

Picture the scene, you have met the perfect candidate, sent out the offer, they have accepted and you are already planning their first day when a call comes in…..their current company has offered them more money to stay!! This sends you into panic mode as you have been working on recruiting this role for weeks, most probably months!

Fear not. With a confident conversation with the candidate, you can get them back on track, continuing working out their notice period.

Here is what to do:

1. Ask them for a call. This is much better than an email which can usually be mis-interpreted or easily ignored.
2. Explain your disappointment, show your emotions. They want to work for an employer who cares and shows the have an empathetic and ‘human’ side.
3. Ask what their main motivator was for their job search…if their current company hasn’t offered them progression, benefits, pay increases, bonuses or something else that was expected, then remind them what they are to gain from working with you.
4. Company culture and hybrid working is a main drive for many job seekers, so talk about this, what you do to embrace this in your office.. (& if you don’t, speak to Kingswood HR for a plan!)
5. Lastly, ask them how they felt after the interview and then once they received your offer. To remind them of that thrill and excitement can sometimes bring them back to why they accepted in the first place.
6. Ask for a decision within 24 hours and give them clear instructions of how to contact you.

Now this can all be avoided if you use an agency….well Kingswood Group – we can take this headache away from you!

In my experience, 70% of candidates who remain with their current employer, will be looking within the year as the reason they left hasn’t changed at all!

If you want to discuss this further, need general HR or Recruitment advice, then contact me or the team today.

Happy recruiting!!

Debbie Carey
Senior Office Recruitment Manager

With over 16 years of experience in recruitment, Debbie transitioned from a decade-long career in the service industry, managing restaurants and hotels, to excelling in recruitment roles. Her expertise lies in HR, Office Support, Marketing, and Accountancy recruitment, primarily in Essex and London.

The Working Time Directive, a labour law established by the European Union, has been instrumental in shaping workplace standards across EU member states. Its adoption into UK law in 1998 as the Working Time Regulations marked a significant move towards enhancing worker health and safety. This legislation aims to protect employees from the adverse effects of overworking, which include risks like stress, fatigue, and potential workplace accidents.

Jump to a section:

Why the Working Time Directive was Introduced

The European Union introduced the Working Time Directive (WTD) to address key labour practice concerns. Its primary aim was the health and safety of workers, recognising that excessive working hours without sufficient breaks led to increased occupational risks, health issues, and fatigue. The directive set maximum working hours and mandated regular rest periods to mitigate these risks.

With the expansion of the EU market, it became increasingly essential to harmonise labour laws across member states. This standardisation aimed to deliver fair working conditions, avoid competitive undercutting in labour standards and increase worker mobility within the EU. 

Another core focus of the WTD was enhancing work-life balance, regulating work hours and guaranteeing mandatory leave to improve workers’ quality of life and reduce burnout.

While the WTD set the stage for standardised working conditions across the EU, its implementation in individual member states, including the UK, required a tailored approach. This led to the development of the UK’s own Working Time Regulations, aligning with the EU’s overarching goals while addressing the specific needs of the UK workforce

The Working Time Regulations 1998

Following the introduction of the Working Time Directive by the European Union, the UK adopted these principles through its own Working Time Regulations. These regulations are a bespoke application of the EU’s directive, tailored to address the unique aspects of the UK labour market.

They provide a detailed framework for managing working hours, rest breaks, and annual leave in the UK, ensuring adherence to the fundamental aims of the WTD: worker health and safety, reduced occupational risks, and improved work-life balance.

The UK’s Working Time Regulations specify the maximum working hours, outline the entitlement to rest periods and annual leave, and adapt these directives to suit the UK context. This local adaptation ensures that the regulations are not only compliant with the EU’s standards but also responsive to the specific needs and conditions of UK employers and employees.

Weekly Working Hours

• Standard Limit: The regulations stipulate that the average working hours should not exceed 48 hours per week, usually calculated over a 17-week period. This includes overtime.
• Young Workers: For workers under 18, the limit is more stringent, with a maximum of 40 hours per week.
• Opt-Out Option: Workers have the option to ‘opt-out’ of the 48-hour week. However, this must be a voluntary agreement and cannot be imposed by the employer.

Rest Breaks at Work

• Daily Rest Breaks: If the working day exceeds six hours, employees are entitled to a rest break of at least 20 minutes. Employers may choose to offer longer or additional breaks.
• Daily Rest Period: Workers should have a minimum of 11 consecutive hours of rest in each 24-hour period.
• Weekly Rest Period: Employees are entitled to an uninterrupted 24 hours without any work each week or 48 hours in a two-week period.

Annual Leave and Holidays

• Paid Annual Leave: The regulations guarantee a minimum of 5.6 weeks (28 days for full-time workers) of paid annual leave per year. This can include public holidays.
• Carrying Over Leave: In some cases, employees can carry over a portion of their annual leave to the next year, but this is often subject to the employer’s policy.

Working Time and Breaks for Specific Cases

• Special Industries and Roles: Certain sectors, such as emergency services, healthcare, or transportation, may have modified rules due to the nature of their work.
• Shift Workers and Night Workers: Additional considerations are given to shift and night workers, including limits on night work hours and entitlements to health assessments.
• On-Call Time: The regulations also address on-call time, with specific guidelines on how this time is counted as working hours.

Record Keeping

Weekly Working Hours:

Employers are not required to keep detailed records of all daily working hours. However, they must maintain records demonstrating that employees do not exceed the 48-hour weekly working limit, unless there is an opt-out agreement in place.

Night Work Limits:

• Records must show compliance with the working hour limits for night workers, ensuring they do not exceed an average of eight hours per 24-hour period.

Health Assessments for Night Workers:

• Employers must offer and record regular health assessments for night workers, ensuring these assessments are up-to-date and relevant.

Protection of Young Workers:

• It is necessary to keep records confirming that young workers are not employed during restricted hours, typically between 10 p.m. and 6 a.m.

These record-keeping practices are essential for demonstrating compliance with the Working Time Directive and safeguarding the well-being of all employees, particularly those working at night or young workers under specific restrictions.

Consequences of Non-Compliance

Fines:

• Businesses face a fine up to the statutory maximum for summary convictions. In more severe cases, fines can be unlimited if the case proceeds to indictment.

Notices by Health and Safety Inspectors:

• The Health and Safety Executive or local authority inspectors can issue “Improvement” or “Prohibition” notices. Non-compliance with these notices can result in:
• Potentially unlimited fines and up to two years’ imprisonment for directors on conviction on indictment.
• A fine up to the statutory maximum and up to three months in prison on summary conviction.

Compensation Claims in Employment Tribunals:

• Workers may claim compensation in an employment tribunal if their rights under the Working Time Regulations are breached.

Post-Brexit Changes to the Working Time Regulations

Following the UK’s departure from the European Union, there has been significant interest in how EU-derived legislation, like the Working Time Directive, will be adapted or maintained in UK law. While the UK has retained much of the EU legislation for consistency and legal continuity, there are areas where future changes could occur:

Post-Brexit, the UK has initially retained the core principles of the WTD, including the 48-hour workweek limit and statutory leave entitlements. This provides continuity for both employers and employees.

The UK government now has the autonomy to amend or revise these regulations. While no major changes have been announced, there is scope for future modifications to better align with the UK’s specific economic and social needs.

Additional Resources

• The Working Time Regulations 1998 
• The Working Time Regulations – HSE
• Maximum Weekly Working Hours – GOV.uk
• Professional Consultation – Kingswood Group HR Outsourcing

Sarah McKee-Harris
CEO & Founder

Sarah has 16 years of experience in HR tTalent Acquisition, working extensively in both London and Essex. Her approach to HR is rooted in a simple yet effective philosophy: taking the time to listen, understand, and question our clients to pinpoint their unique business needs.

What is the Travel Time to Work Law?

The Travel Time to Work Law in the UK primarily refers to regulations that determine whether the time employees spend travelling for work is considered part of their working hours. The cornerstone of this legislation is the Working Time Regulations 1998, supplemented by subsequent legal interpretations and rulings, such as the significant European Court of Justice Ruling of 2015.

Does Travel Time Law Affect Your Business?

Your business is likely to be impacted by travel time laws if:

• It employs mobile workers who travel to different locations as part of their jobs.
• Your employees undertake business travel as part of their workday.
• You operate in sectors like sales, field services, healthcare, etc., where travel is integral to job roles.

Regularly reviewing employment contracts and travel policies is crucial for ensuring that your business practices align with these laws.

Breaking Down Travel Time Classifications

Determining whether travel time counts as work time in the UK depends on several factors and specific circumstances:

General Commuting

• Definition: Regular travel from home to the primary workplace and back.
• Typical Classification: This type of travel is usually not considered part of the working day under UK employment law. The rationale is that this time is not spent under the employer’s direction or performing job duties.
• Exceptions: In rare cases, if commuting involves significant work-related responsibilities or detours to specific work tasks, it may be considered work time.

Mobile Workers

• Who They Are: Workers without a fixed or habitual workplace, such as field service engineers, sales representatives, or home care staff.
• Classification: Travel to the first and last appointments of the day is usually considered working time. This ruling, as clarified by the European Court of Justice in 2015, acknowledges that such workers are undertaking these travels as an integral part of their job.
• Implications: This classification means that employers need to consider this travel time when calculating working hours, rest periods, and potential overtime.

Business Travel:

• Context: Travel that occurs during the workday, distinct from normal commuting. This includes journeys to meetings, site visits, training sessions, or other work-related activities.
• Classification: This is generally regarded as working time. The key factor is that this travel is a directed activity, undertaken for the employer’s benefit and often within work hours.
• Considerations for Employers: Employers should clearly define what constitutes business travel in their policies and how it is recorded and compensated.

Compensation for Travel Time: What Businesses Need to Know

Understanding the nuances of compensation for travel time is crucial for businesses to ensure compliance with employment laws and fair treatment of employees.

For Business and Mobile Workers

• When Paid: Travel time classified as working time is generally compensated. This is particularly relevant for mobile workers or those engaged in business travel. For instance, if a home care provider travels directly to a client site or a sales representative moves between appointments, this travel time is typically counted as working hours and, therefore, compensated.
• Calculating Pay: The approach to calculating pay for travel time can differ from one business to another. Some employers might pay travel time at the normal hourly rate, while others might offer a specific travel time rate, which could be different from the standard rate. It’s crucial for these details to be explicitly stated in employment contracts and clearly communicated in company policies to avoid misunderstandings.
• Impact on Working Time Regulations and NMW: Ensuring the correct classification of travel time is vital to comply with the Working Time Regulations (WTR). Incorrectly classifying travel time can result in unintentional breaches of the 48-hour working week limit set by the WTR. Similarly, when calculating the National Minimum Wage (NMW), employers must consider the total hours worked, including paid travel time, to ensure employees’ pay does not fall below the NMW for their total working hours.

General Commuting

• Typically Unpaid: The standard interpretation under UK employment law is that regular commuting – travel from home to a regular workplace and back – is not paid. This is based on the premise that such commuting is not carried out under the employer’s direction or as part of the employee’s core job duties.
• Exceptions: However, there are notable exceptions. If the commute involves additional work-related tasks – for example, carrying company equipment to a worksite or detours for client meetings – it may be considered compensable work time. Additionally, if an employee has no fixed work location and their first or last destination varies daily, their travel may also be classed as working time.s.

Employee Well-being and Compliance in Travel Time Management

Managing travel time effectively is a multifaceted task that goes beyond mere adherence to legal standards. Equally important is ensuring the well-being of your workforce, a vital component in fostering a productive, engaged, and satisfied team.

Ensuring Adequate Rest Breaks

• Mandatory Rest Periods: Under UK employment law, it’s crucial to provide workers with a minimum of 11 continuous hours of rest every 24 hours. Additionally, if the workday exceeds six hours, employees are entitled to a 20-minute uninterrupted break. Importantly, when travel time contributes significantly to the length of the working day, you may need to adjust break schedules to maintain legal compliance and support employee well-being.

Complying with Working Hours Limits

• 48-Hour Workweek: Remember, the total working hours, including travel time, should not surpass 48 hours per week, as per the Working Time Regulations. Should this limit be exceeded regularly, the employee must have a signed opt-out agreement. Without such an agreement, you may need to rethink workloads or consider increasing your staffing.

Effective Travel Time Monitoring and Optimisation

• Transparent Monitoring: Align with the European Court of Justice’s directive by accurately recording travel times. Ensure this monitoring is done transparently and in compliance with GDPR to respect employees’ privacy rights.
• Route Optimisation: Encourage and enable employees to choose the most direct routes for travel. This not only reduces total working hours but can also decrease fatigue and enhance productivity.

Regular Updates to Employment Contracts

• Contractual Accuracy: Continuously update employment contracts to reflect the actualities of working hours, break entitlements, opt-out clauses, scheduling responsibilities, and work locations. This clarity benefits both the employer and employee by setting clear expectations and maintaining legal compliance.
• Incorporating Flexibility: Particularly for mobile workers, ensure that contracts accommodate the flexible nature of their roles, including variable start and end times based on travel.

Frequently Asked Questions

Need Expert Guidance?

If you’re navigating the complexities of travel time regulations and adapting to the modern workplace, our team of HR professionals is here to help. We offer personalised advice and solutions tailored to your specific industry and organisational needs. Contact us to ensure that your travel time policies are not only compliant but also effective and fair.

The information provided in this article, “Navigating Travel Time Regulations | Understanding UK Employment Law,” is for general informational purposes only and should not be construed as legal advice on any subject matter. While we strive to present up-to-date and accurate information, the laws and regulations regarding travel time and employment may change and vary by jurisdiction.

Content last reviewed 23rd November 2023

Sarah McKee-Harris
Founder, Director & CEO

Sarah has 16 years of experience in HR tTalent Acquisition, working extensively in both London and Essex. Her approach to HR is rooted in a simple yet effective philosophy: taking the time to listen, understand, and question our clients to pinpoint their unique business needs.

The speed at which you hire in today’s market is so important when competing against similar companies and businesses in your industry or geographical area, as they too are also looking to recruit top talent.

See below four reasons which you may not have considered when you are planning your recruitment process to help you gain competitive advantage and save money: 

1. Lost Revenue and Productivity: You are likely to lose significant revenue and productivity because vacant positions are open for too many days/weeks/months. It does not only affect the team in which the vacancy is open, but also the wider departments and hiring managers. Extra pressure and additional workload on a long-term basis can cause bigger problems such as absenteeism and higher turnover.
2. Potential Brand Damage and Reduced Applications: A long, slow hiring can reduce the number of applications you get for vacancies as it can result in a poor candidate experience and damage the employer brand. For example, seeing a position on the job boards for 3+ weeks will make candidates question the reason that particular company is having issues hiring and would usually assume a bad company culture or similar problem and not apply.
3. Missing Out on Top Candidates: Slow decision making on the candidates CV or interview will ensure you miss out on that one person because you wanted to see “who else is out there”. Candidates need to know promptly, (within 2 -3 days) if they have been successful and then be given the next step. Don’t be surprised if you leave it a week to give feedback and the candidate has found another role! 
4. Hidden Costs of Extended Hiring: An extended hiring process can raise “hidden” costs especially if your lengthy hiring process is a result of requiring an excessive number of interviews (more than four), the cost of hiring will go up because much more management, recruiter, and employee time will be spent interviewing.

Simply put, in the current climate you focus on creating a well thought out, efficient and relevant hiring process from start to finish, as if you don’t you run the risk of the competition will taking these candidates off the market before you have the time to make a hiring decision and back to the start of the process you will go! 

Need Assistance with Streamlined Hiring?

If you’d like to find out how the Recruitment & HR team at Kingswood Group can help save you time, money and stress when creating your recruitment processes then contact Debbie Carey today for a confidential discussion.

• debbie@kingswoodgroup.org
• 01245 204450

The Workers (Predictable Terms and Conditions) Act 2023 has received Royal Assent and is expected to come into force in September 2024. It introduces a new statutory right for atypical workers to request a more predictable working pattern by promoting constructive conversations between workers and employers regarding their working patterns..

The new law addresses issues related to atypical contracts, including zero-hours contracts, by providing more predictability in working hours.

Under this new law, workers can formally apply to change their working pattern to make it more predictable if their existing pattern lacks certainty in terms of hours or times worked or if they are on a fixed-term contract for less than 12 months. Employers must respond to such requests within one month.

Acceptance of requests will lead to more predictable terms and conditions for workers, enhancing job satisfaction and potentially resulting in better staff retention.

These include support for employee parents of newborn babies admitted to neonatal care, ensuring fair treatment of tips and service charges, enhanced protection for pregnant women and new parents, provisions for unpaid carers, and the right for millions of employees to request flexible working conditions.

Key points to note include:

• Worker must have a defined work history with their employer and the qualifying period is likely to be 26 weeks’ service although those weeks will not need to be continuous..
• The right will apply to the following:
  • workers whose existing working patterns lack certainty in terms of the hours or times they work;
  • workers on fixed-term contracts of 12 months or less (who are able to request a longer fixed-term or the removal of any provisions relating to fixed-term);
  • agency workers (who can make their request either to the agency or the hirer provided they meet certain qualifying conditions)
• A maximum of 2 applications can be made in any 12-month period
• The application must specify the change being applied for and the date it should take effect. The requested predictability could relate to hours of work, days of work or period of engagement.
• Employers will be required to deal with any requests in a reasonable manner and notify the worker of their decision within one month.
• Requests may be refused on any of several specified grounds. There are currently six listed in the Act, including the burden of additional costs or there being insufficient work during the periods the worker has asked to work.
  • It is important to note that the Secretary of State reserves the right to add more grounds so the list of grounds for refusal may expand.
• If a request is granted then employers must offer the new terms within two weeks of granting the request.
  • Employers cannot make detrimental changes to other contractual terms at the same time as making the changes required as a result of the approved request for predictability.

Acas will be producing a draft Code of Practice for public consultation in the Autumn which will provide guidance on how to handle requests.

At Kingswood Group, as the ‘go to’ HR service and support provider, we will continue to monitor the situation, and will keep our clients and contacts informed as we learn more about the new Code of Practice and its consultation.

In the meantime, if you have any questions about this, or any other HR or ER related matter, please do not hesitate to contact us on 01245-204450 or HR@kingswoodgroup.org.