Contributors
Commenting on the Autumn Budget, Gearalt Fahy, employment law specialist at Womble Bond Dickinson, said:
"Starting 6 April 2025, businesses will face a double whammy: the employer’s NICs rate will rise from 13.8% to 15%, and the threshold for tax liability will be lowered. Coupled with a significant 6.7% hike in the national living wage (over 16% for those under 21) on 1 April 2025—following an even larger increase on 1 April 2024—this will hit hard. The hospitality and care sectors, in particular, will feel the pinch, as they rely heavily on lower-paid employees and many won’t benefit from the increased employment allowance.
"Hot on the heels of the government’s recent introduction of the Employment Rights Bill into Parliament, which aims to fulfil key promises from its Plan to Make Work Pay, businesses are bracing for change. The Bill proposes 28 significant employment reforms, including day-one rights like the ability to claim unfair dismissal, enhanced protections against harassment, and stricter regulations on fire and rehire practices and zero-hours contracts. While some hail these as the most transformative employment law changes in a generation, the government has indicated that the first of these reforms may not take effect until 2026. This delay offers a silver lining for employers, providing ample time for businesses to engage in consultations and prepare for the upcoming changes. Employers should start considering adjustments to their employment structures, policies, and procedures now."
