Payroll and pension procedures under pressure

The way companies manage their payroll and working arrangements is under threat from two new legislative changes.

Businesses that aren’t prepared to handle the alterations to employment regulations could find themselves in legal hot water.

The two Bills will change the way businesses manage their payroll and employee working hours.

The new legislation includes:

• The Workers Act 2023: All zero-hours workers, as of the date this legislation is passed, will have the legal right to request a predictable working pattern. This should be dealt with similarly to a flexible working request but must be addressed within a month. This will especially affect businesses that employ large numbers of zero-hour contract staff.  
• The Pensions Act 2023: This piece of legislation will reduce the age for automatic enrolment into workplace pensions from 22 to 18. Those who are automatically enrolled are entitled to a three per cent contribution from their employer. Employees who earn less than £6,240 can request to be included in the scheme but, in this case, the three per cent contribution from the employer is voluntary.  

Many businesses that handle their own payroll will find themselves with added workload and stress whilst many will have increased costs due to pension contributions.

Getting peace of mind starts with robust accounting practices and sound financial advice from a trained expert.

If you feel unprepared to deal with the coming changes to employment law, get in touch with one of our expert accountants as soon as possible, or visit our website.