Embrace HR changes in 2021

There has been a lot to take in over the past 10 months, with furlough schemes and lockdown laws, but before you raise a glass to the new year, take a moment to make a note of these changes…

It has been a tough year for many of us in the business world, and it is no surprise that the UK economy has shrunk by 11.3 per cent, and that it is forecast to take until 2022 to get back to the level it was at before Covid-19.

However, we will all move forward, and as we do so, we should make a note of some of the upcoming changes that will affect anyone involved in the management of HR.

National Living Wage

The first is that the National Living Wage (NLW – previously the national minimum wage) is set to go up in April. For staff aged 16 and 17 it will become £4.62 an hour and for those aged 23-plus it will be £8.91. See the table for full details:

Age Current rate 2021 rate Percentage increase
20-21 £8.20 £8.36 2%
18-20 £6.45 £6.56 1.7%
16-17 £4.55 £4.62 1.5%
Apprentice £4.15 £4.30 3.6%

End of Furlough Scheme

STOP PRESS 17/12/20: Chancellor Rishi Sunak has extended the furlough scheme for one month until the end of April 2021.

The furlough scheme is set to end in March, so as you come back after the new year, plans around reintegrating staff, reviewing job descriptions and so on will need to be confirmed.

The CIPD is calling for the government to extend the scheme once more beyond the end date of 31 March 2021 [CIPD: CIPD calls on Chancellor to extend furlough scheme to the end of June to protect jobs 13/12/2020]. The independent professional body has asked that support should be gradually phased out, allowing companies some stability while the vaccination scheme is rolled out. It has said that the government should keep its contributions at 80 per cent for February and March, dropping them gradually through April, May and June.

As and when we hear more on this, we will update you.

Flexible Recruitment

If this year has shown anything, it is that many jobs can be done remotely, offering staff a better work life balance by dropping commuting time and offering the chance to work around family and caring commitments. Many companies have realised that they can also tap into a wider selection of candidates by taking their pick from potential employees located outside of commuting distance.

Now is a good time to ensure that you have policies in place for recruiting for remote-based jobs, if that is what you will do going forward, and reviewing your remote working policies around working hours, IT and security – if you didn’t do so during the first lockdown.

You might also like to review our previous blog on the subject of flexible working.

If you would like to discuss this subject further, please contact Cecily Lalloo at Embrace HR Limited.

T: 01296 761288 or contact us here.

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Based in Aylesbury, Buckinghamshire, Embrace HR Limited supports business owners who do not have their own HR department or those that do but need help from time to time. We also work across the Home Counties of Oxfordshire, Bedfordshire and Hertfordshire, and also SMEs based in London.