News

The UK Budget 2024 introduces several significant changes to employment law that will affect both employers and employees. Let's take a closer look at these updates:

For Employers:

• National Insurance (NI) contributions - Employers will see an increase in NICs from 13.8% to 15%. This change is estimated to generate an additional £25 billion annually by the end of the forecast period.
• Secondary Threshold Reduction - The secondary threshold for NICs will decrease from £9,100 to £5,000, which could result in higher costs for businesses.
• Employment Rights Bill - The introduction of this new legislation may lead to increased expenses for employers, with estimates reaching £5 billion per year. The bill aims to improve job security, fairness, and worker wellbeing, with measures such as enhanced redundancy protection and the right to request flexible working arrangements.

For Employees:

• Pay and benefits - The increase in NICs could affect employee pay, as businesses may need to allocate more funds to cover these contributions, potentially leading to changes in salaries or benefits.
• Improved Job Security - The Employment Rights Bill introduces new provisions to strengthen employee rights, including enhanced redundancy protection and the ability to request flexible working arrangements.
• Fair Treatment in the Hospitality Sector - Workers in this sector will benefit from a new requirement for employers to pass on all tips and gratuities without deductions, ensuring fair treatment and financial gain for employees.

These updates are set to reshape employer responsibilities and strengthen employee rights in the UK, with a focus on promoting job security and fairness in the workplace. Contact the Employment team at Curwens Solicitors for further information about these changes to ensure you're prepared for the impacts on your business or employment.

Omar Qassim is the new Head of Employment Law at Curwens Solicitors. He specialises in advising both employers and individuals on all aspects of employment law. Omar has extensive experience in advising on redundancies, restructures and reorganisations and in transactional advice, including TUPE implications for both employers and employees. A large proportion of his work involves dealing with employment tribunal litigation such as drafting claims and/or grounds of resistance and witness statements. This often includes negotiating directly with opponents or via ACAS so as to achieve the best possible outcome for his clients. Omar also regularly advises on procedural issues such as disciplinary and grievance matters, sensitive internal investigations, recruitment or exit strategies, advising new and existing businesses on developing staff handbooks and including social media policies and hybrid working policies.