From 6 April 2024, UK redundancy rules changed, particularly surrounding employees on maternity, adoption, and shared parental leave.
The new legislation extends the ‘protected period’ for redundancy to 18 months and will also apply to pregnant employees from the day they notify their employer of their pregnancy.
This is important because a failure to comply with the new rules could result in a redundancy being automatically unfair and deemed as discriminatory.
The effect of the legislation is to extend the ‘protected period’ during which these employees are given priority over any suitable vacancies if they exist.
Adjustments in payroll and HR practices should also be considered, and you will need to update your redundancy policies and consultation process to align with the new rules.
From a payroll perspective, these changes make it increasingly important to accurately track maternity, adoption, or shared parental leave.
By preparing now, you can ensure that you meet these new requirements, minimise financial risk, and support your employees effectively during these critical life stages.
The tax treatment of redundancy payments, which are tax-free up to £30,000, will also need careful consideration to ensure compliance with HM Revenue & Customs (HMRC).
If you require further guidance or information on payroll changes relating to redundancy, please get in touch.
