Isio’s Reward and Benefits partner Mark Jones has underscored the importance of the year 2025 for employers, citing the Government’s Get Britain Working White Paper and the Employment Rights Bill as catalysts for alterations in the workplace.
The White Paper was published in November 2024, while the Bill was released in October.
Key to these reforms is the establishment of the Fair Work Agency, a new body with consolidated enforcement authority across various employment rights.
With enhanced powers to investigate and enforce, the Fair Work Agency signifies a departure from the previous system, which often relied on employees to initiate claims.
He claims that this proactive regulatory stance means employers must be vigilant in complying with employment laws to avoid severe penalties, reputational harm, or public censure.
He further added: “Flexible working will also remain a key area of focus. This is no longer a nice to have – it’s a key part of any benefits strategy and will be a key bargaining chip in the race for talent in 2025. Getting this right can improve turnover and employee engagement.”
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By GlobalDataThe changes extend beyond regulatory compliance, with National Insurance (NI) and minimum wage adjustments continuing to dominate employer agendas.
These financial shifts compel businesses to re-evaluate their staff reward strategies.
Jones advised employers to adopt a comprehensive view of their reward packages, suggesting the optimisation of salary sacrifice schemes, such as those for pension contributions, and exploring cost-saving measures in other employee benefits.
“Employers should start scenario planning now,” he stated, emphasising the need to assess the impact of NI changes on the overall cost of employment.
To navigate the upcoming changes, employers are encouraged to review and potentially redesign their benefits packages.
Targeting support where it is most effective will be crucial in managing costs while maintaining a compelling employee value proposition.
