Set Increases to NLW and NMW: The largest ever cash increase to the minimum wage

No doubt you will have already heard the announcement to increase the National Living Wage (NLW) to £11.44 per hour, amounting to an uplift of almost 10%. This comes after the Government confirmed their acceptance of the recommendations made by the Low Pay Commission to increase National Minimum Wage (NMW) and National Living Wage (NLW) rates from early April 2024. The agreed increases are substantial, so it’s important to reflect fully on the impact this may have for employers and businesses across the UK.

Along with the rate increase, eligibility for the National Living Wage (NLW) has been extended, applying to all workers aged 21 and over for the first time from April 2024. This change means a larger proportion of the UK workforce will soon be entitled to receive the highest rate of legislated pay.

For clarity, the new rates of pay will be as follows.

Age	NMW from 1st April 2024	Cash Increase	Percentage Increase
National Living Wage (21 and over)	£11.44	£1.02	9.8%
18 – 20	£8.60	£1.11	14.8%
16 -17	£6.40	£1.12	21.2%
Apprentice	£6.40	£1,12	21.2%
Accommodation Offset	£9.99 (per day)		9.8%

 

With the current cost of living crisis there is no doubt the increase will be a welcome change for many employees, helping to bridge the gap considerably in favour of the voluntary ‘Living Wage’.

However, it’s important employers start planning ahead now and consider the implications for their individual businesses. With circa three million people in the UK expected to be affected, there is a significant likelihood that payroll costs for many employers will be elevated in the near future. In addition, the inclusion of a wider number of people in the highest category of pay will naturally increase those earning above the pension threshold, meaning employers will need to consider carefully how this impacts their current auto-enrolment and pension provisions.

NMW Checklist. How you can stay ahead of the changes and ensure compliance…

• Analyse the implications and affordability of increased payroll costs well in advance
• Consider wider costs which may be applicable, including increases in employer pension and national insurance contributions, as a result of this change
• Check regularly that your payroll information and records are up to date
• Keep records relating to pay for at least 6 years if they were created after 1^st April 2021
• Set a calendar reminder in advance to check your team members’ ages and ensure they are scheduled to be paid in the correct age bracket
• Advise team members in writing of the upcoming change to their hourly rate
• Remember when calculating holiday pay from April 2024 to use the updated figures
• Contact AAB People for additional support wherever required

We understand navigating these changes may be challenging for your business, so please don’t hesitate to contact James Richardson, Frances Wood, or your designated consultant at AAB People if you require any additional clarification, information, or support.

Future Focused HR: Embracing topical trends and progressive practices

Future Focused HR: Embracing topical trends and progressive practices

We know that employers are facing more challenges than ever before when running their business. From the risk of losing staff, the worry of how best to be a supportive employer to the uncertainty of using AI in your business when it is such an unknown but powerful tool.

On 8 November, AAB People are hosting a webinar that will cover some of the most topical HR matters facing employers right now, based on our conversations with clients and from what we see in businesses we deal with day to day. We have included a varied range of topics detailed further below and provide pragmatic advice to business owners, manager and HR professionals on how to effectively deal with the issues we believe they are facing.

The impact of Hybrid Working on Mental Health and how to manage it

Having been catapulted 10 years ahead of where we would have expected to be following the pandemic, has the pendulum swung too far and how do we find a balance between Hybrid working practices and the increase in mental health issues.

This seminar will help employers look at their Hybrid working practices form a “people” perspective to avoid the “one size fits all” approach.

AAB People can work with employers using specialist skills to identify roles, behaviours and personalities best and worst suited to Hybrid working ensuring they get the best out of everyone

How to Retain and Engage Talent

We will cover the importance and benefits of engaged employees and how this links to retention. We know that holding on to great employees is a focus for a lot of employers right now due to a very buoyant recruitment market. We will also discuss factors which can impact employee engagement and methods of increasing engagement and in turn employee retention levels.

Managing AI in the workplace

You will likely have seen the recent influx in conversations about Artificial Intelligence and how people think this is going to impact on the workplace. We are going to look at where AI can be useful, and how to manage it effectively and ethically within the workplace to ensure that it is used in a positive and productive manner.

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Employment Legislation Changes: What Employers Need To Know

There are three employment legislation changes that we are expecting to take place in the year ahead. These changes will affect family friendly provisions in the workplace.

Three key changes have been announced by the government which will be the most significant developments to family friendly legislation since 2015 – flexible working rights will be getting a shake up, along with the introduction of carers’ leave and extended redundancy protections for pregnant and new mothers. It is anticipated they will become effective for employers in the year ahead, and the below sets out what employers need to know at this stage about the upcoming changes.

Redundancy Protections During Pregnancy & Maternity Leave

It is well understood by employers that employees expecting a baby, or those on or returning from maternity leave, are already the most protected category of workers in employment law. However, these new proposals will broaden the rights of expectant and new mothers a step further by extending the period of protection for redundancy from the point of an employee informing their employer they are pregnant until 18 months after the birth of their child. What this means in practice is that in redundancy situations pregnant women and expectant mothers will have the right to be offered suitable alternative employment for a longer period. It does not mean that this group of workers will be immune from redundancy, but essentially there will be additional protections from pregnancy, right through to a child reaching 1 and a half years old.

Carers’ Leave Introduction

Carers currently have very limited rights under what is known as Time Off For Care Of Dependents providing ‘reasonable’ unpaid time off. The proposed legislation would be much more prescriptive giving the right for unpaid carers to take up to one week (five working days) of unpaid leave per year. Like the changes to flexible working outlined below, it is anticipated this would be a right regardless of length of service. Employees will not be required to give evidence of the request for leave, and employers will not be able refuse requests, but they will be able to delay requests on limited grounds. It is expected employees will be able to choose to take leave in a flexible way such as single days, half days, or a full week.

Flexible Working Changes

Probably the most wide reaching of the three proposals is the reforms to flexible working, and the changes proposed are a significant shift from the status quo:

Employees will no longer have to justify the effect of their request for the employer, and how the change might be dealt with;

• Rejecting a flexible working request will require consultation by the employer;
• Employees will be able to make two flexible working applications per annum rather than the current right to one application; and
• Decisions on the outcome of a flexible working request will require to be made within 2 months as opposed to the current 3 months.

Impact of Changes

Whilst these are the most significant changes to family friendly legislation we have seen in nearly a decade, even collectively, the impact for working families is likely to minimal. However, they are definite progress – the fact that the government are implementing several new pieces of legislation to give enhanced rights and protections for those with caring responsibilities are a step in the right direction. For employees, the new legislation will give that little bit more protection and confidence in making requests to support their family. For employers, although many have become far more flexible than ever, the introduction of additional laws will serve as clarity on what is expected. Further updates are expected in due course to firm up the details and specific dates of when these laws will become effective in practice.

Furthermore, whilst the upcoming changes are somewhat limited in reach, these three initial reforms are likely to be a catalyst for further change coming down the track in mandating employers to improve their family friendly support to their staff. There is already further provision anticipated with statutory neo-natal leave and pay already approved and also set to be brought into effect over the next year or so. It’s clear that further reform in this area can be expected so watch this space.

Our specialist HR & Employment Law team are here to support you. If you have any questions about the employment legislation changes please do not hesitate to get in contact with a member of the team

Right to Work Checks – What you need to know

What are right to work checks?

As part of the onboarding process right to work checks are a vital part of ensuring businesses are compliant with the law. So, what are right to work checks? They are checks employers carry out with new staff members to ensure they have legal authority to work in the country where they are to be employed. They should also be carried out throughout employment to ensure their right to work is still valid if they do not have a permanent right to work status.

What documentation is considered as evidence of right to work?

There is a useful document on the government website which details what evidence is required. An employer’s guide to right to work checks: 6 April 2022 (accessible version) – GOV.UK (www.gov.uk). If the employee is from the UK, the right to work would be their valid UK passport and a document that details their national insurance number. This will differ for foreign employees and will usually require evidence of a visa; employers should keep in mind that employees from the EU may be part of the EU settlement scheme and should ask for evidence of this. It is important that all employees are treated the same no matter where they are from to avoid claims of discrimination. Right to work checks should be completed for all employees. Employers should then also carry out ongoing checks on their employees’ right to work, to make sure their visas or passports are in date. If an employee is waiting for confirmation of their visa/ national insurance number, documentation from government bodies evidencing they have applied can be used in the interim.

How should this be stored?

It is important to note that for all right to work checks, employers should sign and date a copy of the right to work documents to say they have seen the original. This should then be clearly labelled and securely stored on the employees’ personal file. Any updated documentation should also follow the same process.

What if an employee is unable to provide appropriate right to work?

It is a criminal offence to employ/ pay individuals who do not have appropriate right to work and so is vital employers keep on top of this. If employees are unable to provide accurate right to work, after a grace period to gain this, they should either have their offer of employment revoked or their employment terminated if they are unable to evidence that it will be obtained in a reasonable amount of time.

Changes that took effect from 1^st October 2022

During the pandemic there were changes made to right to work checks to allow employers to check right to work remotely. The changes allowed employers to check right to work by arranging a video call with the employee and checking their scanned documents, if they were unable to check in person. As of 1^st October 2022, these changes are no longer valid. Checks will now either need to be in person, or by appointing an Identification Service Provider (“IDSP”). The IDSP will then use Identification Document Verification Technology (“IDVT”) to check the passport of the British & Irish national on behalf of employers. If the employee does not have a passport, then you must see their documentation in person. Please be aware that this could be carried out before the first day of employment, such as at a second stage interview. If the applicant is outside of the UK and Ireland you can use the government checking service, which will require a share code that the employee will have been issued with. View a job applicant’s right to work details – GOV.UK (www.gov.uk).

If you have any queries about the right to work checks process or any questions about your HR & Employment Law processes please do not hesitate to get in contact with or a member of our HR & Employment Law Team.

Marine Products Scotland

Our Client

Marine Products is one of the UK’s leading producers of luxury Scottish salmon. The company works with retailers, salmon farmers and third party customers to process their fish, while also supplying products under their own brand The Sùlaire Fish Co. The company was recently listed in The Sunday Times Fast Track 100, hailed as one of the fastest growing companies in the UK, and in the London Stock Exchange’s list of 1,000 Companies to Inspire Britain 2020.

Our Challenge

The company has been a client of ours for some time, and were introduced to the AAB People HR team two years ago.  People have always been at the heart of Marine’s ethos with 150 staff employed at the Glasgow site, but the company did not have a dedicated HR function.

The Managing Director felt they didn’t need a full time resource, but identified a need for the following HR support:

• Strategic advice and guidance on handling HR matters
• Developing and streamlining HR policies and procedures
• Implementing contractual documentation.
• Restructuring and amending job functions.

Our Solution

Working both on and off site for Marine Products, our HR support has allowed the company to meet a range of HR challenges during a significant period of change.

Our Impact

Managing Director, Mary Bisset said

“I was never quite sold on the merits of HR until I started working with AAB People.  Lois McMurtrie converted my view around the value of the HR function – she has worked directly with me on a number of key HR projects which have fundamentally changed how we approach people management and which have positively impacted our business and critically our bottom line. ”

 

“Lois and the rest of the team at AAB People have expert HR knowledge, and a particularly pragmatic approach. They are all very personable which makes building a strong relationship easy.  I would have no hesitation in recommending AAB People, and think their expertise would be beneficial to any business.”

 

Fios Genomics

Our Client

Fios Genomics provides bioinformatic data analysis services to pharma companies and academia for drug discovery, development and applied research. (Bioinformatics is the science of collecting and analysing complex biological data such as genetic codes.)  

Founded in 2008 and based in Edinburgh,  Fios is listed among the top bioinformatics providers, with a large client base in all life science areas. In the last six years alone, its 10-strong team has grown to 46, working with top pharma companies around the world.

Our Challenge

Fios has a specialised team of bioinformaticians, statisticians and biologists based mainly in Edinburgh, AAB People has supported the company for over six years in all things HR, excluding recruitment. In the absence of internal HR expertise, Fios sought a long-term partner who could manage, develop and advise on all aspects of workplace life, employment practice and employee relations. The ongoing brief is wide-ranging general HR expertise, guidance and practical tools, from compliance and procedures to performance management, professional development and employee engagement. 

A priority since 2022 has been to provide team training across ever-evolving areas relating to people management, such as company-wide diversity and inclusion awareness, to reflect and respect the changing nature of the workplace. Also vital in the post-pandemic landscape of hybrid and remote working has been the provision of training relating to a re-distributed workforce. Pre-2020, almost all Fios staff were based in Edinburgh. Now, most work remotely or within a hybrid arrangement, presenting fresh challenges for leadership, communication and performance management.
 

Our Solution

Consultant Donna ran training workshops for all 46 Fios employees, including management team training. They included performance management and appraisals guidance for new and established managers, where sessions were created for managers to learn how to manage processes relating to performance management and employee feedback. 

Also vital was awareness training in several continually evolving areas: diversity and inclusion, the importance of emotional intelligence in a highly technical, analytical, often ‘black and white thinking’ environment, giving sensitive feedback and having difficult conversations, building resilience and the challenges and practicalities of working from home and here-to-stay hybrid working. 

AAB People also provided employee relations guidance, featuring end-to-end process education on all aspects, from mediation, casework, performance management issues to annual leave, maternity leave, absence management, occupational health referrals and disciplinary procedures.  In addition, a benefits review and set of recommendations was conducted for Fios in 2022.  

Turning to company culture, AAB People ran a Values workshop for Fios in 2020. The outcomes have since underpinned all workplace behaviour, outlook and recruitment, as well as approaches to everyday challenges and problem-solving. An adapted version of AAB’s own ‘Ways of Working Charter’ was introduced, covering mindful, respectful communication with colleagues, people development, time management and overall company culture guidance.  

An employee engagement forum was established, in which six representatives of different departments meet voluntarily every six weeks to discuss workplace incentivisation schemes, any emerging team issues and ideas for all-important team social activities, many of which happily include AAB People! 

Ensuring robust policies, procedures and compliance is another key part of the brief, including a Right to Work audit to ensure that correct documentation is supplied for every employee in every circumstance. 

Ongoing support and a ‘listening ear’ is central to the AAB People-Fios Genomics relationship. CEO Sarah Lynagh has weekly calls with Donna to discuss emerging HR issues and challenges. These might include retention challenges, performance management or specific cases relating to individuals. As testament to her trusted role as senior advisor and HR Lead, Donna is regularly invited to internal leadership meetings where people strategies and decisions play a significant part. She is also first port of call for any employees with HR questions or concerns. 

 

Our Impact

CEO Sarah Lynagh particularly values the advisory role that AAB People play over and above the practical support and guidance of everyday HR issues: 

“We have the ideal arrangement, where AAB People are part of our team but act as a slightly independent, neutral source of knowledge and expert guidance. They also ‘keep us right’ in negotiating the teething problems associated with business growth.“ 

“As CEO of a growing business, you can sometimes get lost in the weeds and the trees. It’s great to have a sounding board in Donna, who can help us decide what to sometimes let go and what to pursue. It’s also beneficial for our business to have access to her wider team and all their client experiences. It takes away the typical pain points of running a company.” 

“Before we found AAB People, we had academic processes in place and legal support, but we lacked the ‘softer touch’ expertise needed to nurture a growing team. We needed to take stock and professionalise our HR!” 

“We’ve had several new managers facing new scenarios – people whose roles are very technical and who’ve benefited from AAB People’s management training, having never run teams before or been responsible for the development and wellbeing of other colleagues. The training around diversity and inclusion and emotional intelligence really opened our eyes.” 

“The emerging issues around post-Covid hybrid-working have been particularly challenging to navigate. It was like a grenade being thrown into our working practice, leading to several new flavours of contract and with them, new types of policy and new people management issues!” 

“The world has changed; the levels of flexibility that new recruits, especially younger ones, are demanding, is brand new territory. It’s a fine balance between encouraging office-based working to suit the needs of the job Vs. alienating the discerning talent you’ve worked hard to find. The ‘Monday-to-Friday in the office’ culture is simply no longer an option for some recruits.”

“The values workshop that Donna ran for us was terrific and very worthwhile. We apply the outcomes to our daily practice and stick to those values in our comms, our marketing and in recruitment interviews.”