Key Updates & Quick Wins

Welcome to this Month's HR News - It’s a busy time of year in both business and our personal lives as we steam toward the festive season, and somehow the year has flown by (again!). In this edition, we’ve pulled together some key HR updates, helpful reminders, and a few quick wins to keep things running smoothly as we head into the final stretch.

What’s Happening in HR and Employment Law

There’s been a lot of hype about the Employment Rights Bill. Understandably so, as it’s billed as one of the biggest overhauls of employment law in a generation. However, here’s the key for you: it hasn’t landed in full yet!

Last week, the Bill failed to clear its final stage in Parliament. The House of Lords pushed back on several changes, sending it back to the Commons for another round of what’s known as “parliamentary ping pong”.

So, what's the reality? It’s likely to be at least several months before any decisions are made. Most changes won’t be enforced until 2027, so there’s no need for panic.

The main issue causing the hold-up? The qualifying period for unfair dismissal. Right now, employees must have two years’ continuous service before they can make a claim for unfair dismissal, except in special cases like whistleblowing. Labour’s 2024 manifesto promised to make protection from unfair dismissal a day-one right, meaning no waiting period at all. However, the House of Lords has said this goes too far and wants a six-month qualifying period instead.

The Government is now caught between sticking to its promise or compromising to get the Bill through.

What to Do Now?

Don’t panic - but don’t ignore it either. Take small practical steps:

✅ Make sure your contracts, holiday pay, and flexible working policies are clear and up to date.

✅ Continue to keep an eye on updates, and budget for changes that might affect your costs down the line.

Quick Wins You Can Focus On Now

Aside from the uncertainty, many small businesses are feeling the squeeze - rising costs, wage pressures, and retention struggles. The good news is, you’re not alone! Focus on what you can control: a strong culture, smart systems, and clear people policies. Use this moment to get ahead.

1. Review Your HR Practices

Take a close look at your onboarding, contracts, appraisals, and absence management. Streamlining these processes can save you time and headaches later.

2. Refresh Your Policies

Make sure your policies, particularly those on harassment, equality, and flexible working, are up to date. Clear policies help create a safe and inclusive workplace.

3. Check Your Employment Contracts

Pay special attention to contracts for zero-hours and flexible workers. Ensure they reflect current laws and practices.

4. Improve Your Line Manager Training

When change hits, you want your managers to be prepared. Invest in training to help them navigate challenges effectively.

5. Communicate Well with Staff

Emphasise good culture and flexibility. This builds resilience and loyalty among your team.

6. Keep Good Records

Maintain accurate records of holiday pay, SSP calculations, and working hours for typical contracts. Good record-keeping can save you from potential disputes.

Upcoming Wage & Pay Rate Changes

The Living Wage Foundation

The Living Wage Foundation announced new voluntary rates on 22nd October:

• UK rate: £13.45 per hour

• London rate: £14.80 per hour

  
  

⚠️ Deadline to implement (for accredited employers): 1 May 2026

These rates are not mandatory unless you're Living Wage-accredited, but they’re useful as a benchmark if you want to boost your employer brand, attract talent, or show you're going above the legal minimum.

National Minimum Wage (Statutory) – April 2026 Forecast

The national minimum wage is the lowest amount employees can legally be paid. We don’t yet know what the new minimum wage rate will be from April 2026. This will likely be announced in the Autumn Budget on 26 November, but early estimates suggest:

➡️ It could rise to around £12.71 per hour (a 4.1% increase).

➡️ Some forecasts put it between £12.55 and £12.86.

This is the legal minimum employers must pay eligible staff aged 21 and over.

Get Ahead: Plan for Pay Changes

If you’re paying above minimum already or considering paying the “real” living wage, then the voluntary sector rates provide good benchmarking for retention, employer brand, and morale. It's also vital to budget accordingly; even if an individual cost rise seems modest, aggregated across a team it can become meaningful in a tight cost environment.

Conclusion

We hope you found these updates useful. If you’d like any guidance on implementing these updates or want to discuss how they affect your business, don’t hesitate to get in touch.

Watch out for our next edition, where we’ll be sharing our festive season survival guide! 🎅

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