From 6 April 2024, the UK will see adjustments to its redundancy regulations, with a direct focus on employees who are pregnant and/or on family-related leave.
The legislation now extends the ‘protected period’ for redundancy to 18 months post-birth or adoption placement, meaning that you must offer your employees priority for suitable alternative positions if they are made redundant.
This alteration may significantly affect your business’s finances, especially if you face potential redundancies.
You should know that increased operational expenses are likely due to the requirement to either retain staff longer or allocate them to different roles.
Additionally, the tax treatment of redundancy payments require careful attention – these are exempt from tax up to £30,000 and must be understood if you wish to remain compliant with HM Revenue & Customs (HMRC) regulations.
Therefore, modifications to payroll and human resources policies must happen, as well as the revision of your current redundancy policies and consultation procedures.
This will help you to remain compliant with the regulations you might face.
It has become increasingly important to maintain accurate records of maternity, adoption, or shared parental leave.
By adapting your current processes now, you can align with the new legal requirements, which will help you to reduce financial risks and provide support to your employees during these situations.
