First 50-Day HR Plan for the New Financial Year

With the new financial year fast approaching, HR departments must be proactive in implementing key changes to stay compliant and ensure a smooth transition. The following five crucial areas should be at the forefront of your 50-day HR plan to align with new policies and procedures.

1. Employment Rights Bill

The Employment Rights Bill is set to introduce significant changes that HR teams must prepare for:

• Collective Redundancies: The removal of ‘at one establishment’ from the legislation means that large-scale employers will need to consult employees if proposing 20 or more redundancies across the company, rather than at a single site.
• Zero-Hour Contracts: Anticipate potential legislative changes impacting zero-hour contract workers, ensuring compliance with new protections and rights.
• Unfair Dismissal: Strengthen policies around dismissal processes to align with evolving legal expectations and prevent potential claims.

2. Pay Increases

With an increase in the National Living Wage and Minimum Wage, HR plan must include:

• Review payroll systems to accommodate these adjustments.
• Assess budgetary impact and ensure compliance with new wage structures.
• Address the increase in National Insurance (NI) costs, which may make direct hiring more expensive. Consider outsourcing services such as Certes IT Managed Services to fill key skill gaps without bearing the full burden of NI costs.
• Prepare for the increase in Statutory Sick Pay, ensuring proper policies are in place to manage employee absences effectively.

3. Equality Reform

Greater emphasis is being placed on equality, requiring HR to:

• Expand equal pay protections, particularly addressing disparities based on race or disability.
• Prepare for increased demands in pay gap reporting to ensure transparency and compliance.
• Implement diversity and inclusion initiatives to foster an equitable workplace culture.

4. Family Leave Expansions

New family leave policies require HR teams to:

• Implement Neonatal Care Leave and Pay, allowing parents of premature babies additional paid leave.
• Update leave policies in accordance with the Paternity Leave (Bereavement) Act 2024, ensuring compliance and supporting affected employees effectively.

5. Right to Disconnect Policy

A New Code of Practice for 2025 will enforce the Right to Disconnect, giving employees the ability to claim compensation if they are repeatedly contacted outside their contracted hours. HR teams should:

• Establish clear policies defining work-life boundaries.
• Train managers on appropriate communication expectations.
• Promote a culture that respects employees’ personal time while maintaining productivity.

Final Steps for Success

• Conduct an internal HR compliance audit to ensure readiness for the changes.
• Communicate updates clearly with employees through training sessions and policy briefings.
• Collaborate with legal and financial teams to manage risks and align business strategies with new regulations.

By addressing these five critical areas within a 50-day HR Plan, your HR department can ensure compliance, mitigate risks, and maintain a supportive workplace environment.