Change for businesses is afoot with the Employment Rights Bill expected to pass in the very near future.
The Bill offers significant support to workers across the UK and provides clarity to business owners on their legal obligations in the biggest set of changes to employment rights in a generation.
The Bill is currently in the consideration of amendments stage as the House of Commons finalises the Bill before it begins the Royal Assent and becomes law.
For employers, payroll professionals and HR teams, not only will they be paying close attention to the latest developments, but they will be preparing to play an important role in implementing the changes within their companies.
What changes will the Employment Rights Bill bring?
The Bill is set to bring major changes to the rights of your employees which is why your business needs to be prepared.
Changes expected to pass include strengthening statutory sick pay, day one rights for parental leave, removing zero-hour contracts, an increase in time limits for claims and the introduction of an enforcement agency for specific employment rights.
The rights of your workers will be significantly enhanced as the Government reforms a system that does not adequately reflect modern society and gives employees access to more support.
There will be a lot of change in a short period as you will need to comply with the new regulations once they are introduced.
As well as a lot of change, there will be education involved as you need to know what has changed, relay that to your senior management team and then eventually your employees.
How will the changes affect my payroll and HR teams?
Given the swift changes in a short space of time, for payroll and HR teams, this will be a challenging period given how much work will need to be done.
With plenty of changes expected to take effect, HR and payroll teams will be updating employee contracts to reflect the changes including all new entitlements and existing clauses that may need updating or removing entirely.
It will increase the administrative burdens in the short term as you implement changes to employee contracts. Your HR team will also likely need to update the employee handbook to reflect the changes and educate your staff on the Employment Rights Bill so they understand what has changed within their contract.
The removal of zero-hour contracts means your payroll team will need to analyse and calculate wages and submit this compliantly with HM Revenue and Customs (HMRC).
With so much change in a short period of time, it’s crucial that your HR and payroll systems are capable of handling the sudden influx of new measures.
Payroll software solutions with Moore Thompson
Preparation is key and with changes imminent, it’s crucial that your processes or software can handle it.
If you do need support in preparing or upgrading your payroll software, our cloud accounting team is here to help you choose the right payroll software for your business.
With our payroll expertise and experience in training clients to use software, we’ll be able to set you up with payroll software that’s fit for your business and frees up your valuable time.
Ensure your payroll software is ready for the changes ahead. Contact our cloud accounting team today for expert support and guidance.