posted 27th January 2025
Employment law in the UK is undergoing significant changes. These reforms, including the “fire and rehire” protective award increases effective from 20 January 2025 and the National Minimum Wage increases from 1 April 2025, bring both challenges and opportunities for businesses across industries like manufacturing, logistics, aerospace, engineering, and automotive. For employers, understanding and adapting to these changes is essential for maintaining compliance and workforce efficiency.
At NuStaff, we are committed to supporting businesses in navigating these changes with empathy for both employers and employees. In this latest article, we break down the key updates and how they impact recruitment, providing insights into how our expertise can help your business thrive.
Fire and Rehire: What You Need to Know
From 20 January 2025, new protective awards of up to 112.5 days’ uncapped pay per affected employee will apply to employers who fail to comply with the updated "fire and rehire" Code of Practice. This practice, while not banned, now requires employers to engage in meaningful dialogue with employees to explore options before seeking dismissal and re-engagement on new terms.
Challenges for Businesses
• Increased financial risk for non-compliance.
• Stricter expectations for communication and consultation with employees.
Positive Impact for Employees
This change promotes better job security and fairness in workplace restructuring, fostering trust and collaboration between employers and staff.
How NuStaff Can Help
NuStaff’s temporary recruitment solutions provide businesses with the flexibility to manage workforce changes without resorting to "fire and rehire" practices. Our tailored strategies ensure compliance with the Code while meeting your operational needs.
Mark Shepherd, Sales Director at NuStaff, comments: "Our goal at NuStaff is not just to provide staffing solutions but to act as a trusted advisor to our clients during times of change. Whether it’s navigating fire and rehire reforms or implementing flexible staffing to manage rising costs, we’re here to help businesses succeed in a compliant and efficient way."
National Minimum Wage Increases
Effective 1 April 2025, the new National Minimum Wage rates will significantly impact payroll costs. For workers aged 21 and over, the hourly rate will rise from £11.44 to £12.21. Younger workers and apprentices will also see notable increases, narrowing the pay gap across age groups.
Challenges for Businesses
• Higher payroll expenses, particularly in sectors like manufacturing and warehousing, where many roles are entry-level.
• Potential compression of pay structures, creating pressure to adjust managerial salaries.
Positive Impact for Employees
This increase ensures fairer wages, improving living standards and job satisfaction for workers, which can positively influence productivity and retention.
How NuStaff Can Help
By leveraging our expertise in temporary staffing, businesses can adapt to wage increases with flexible hiring models. Temporary workers allow companies to scale their workforce efficiently without long-term commitments, managing costs while maintaining productivity.
Workforce Planning for 2025
The legislative changes in 2025 highlight the importance of proactive workforce planning. From compliance with updated employment laws to managing rising costs, businesses must adopt strategies that balance operational efficiency with employee satisfaction.
Key Considerations
• Review employment contracts and HR policies to ensure compliance with new regulations.
• Explore flexible staffing solutions to address fluctuating demand and rising payroll costs.
• Provide training for managers on effective communication and performance management in line with the new “fire and rehire” Code of Practice.
How NuStaff Can Help
NuStaff offers a range of services to support businesses in planning for these changes, including:
• Temporary-to-permanent staffing models that reduce hiring risks.
• Access to a diverse talent pool for specialist roles in manufacturing, logistics, and engineering.
• Expert advice on aligning recruitment strategies with evolving employment laws.
Looking Ahead: Preparing for the Future
While 2025 brings immediate changes, more reforms are on the horizon for 2026. Employers should use this year to lay the groundwork for these upcoming updates, ensuring a smoother transition when they take effect.
How NuStaff Supports Long-Term Success
At NuStaff, we stay ahead of legislative changes, offering clients timely advice and flexible staffing solutions. Whether it’s navigating current updates or preparing for future legislation, our team is dedicated to helping your business thrive.
Contact NuStaff for Expert Advice
Navigating employment law changes can be complex, but you don’t have to do it alone. NuStaff’s recruitment experts are here to provide tailored solutions that ensure compliance and support your workforce needs.
📞 Call us: 03442 645 456
📧 Email: info@nustaff.com
🌐 Visit: www.nustaff.com
Let’s work together to build a compliant and efficient workforce for 2025 and beyond.
