For many employers, receiving their first AEO can spark concern. The legal terminology, strict timescales and calculation requirements might seem daunting, but they’re actually part of a well-established system designed to help people repay debts while protecting their basic living standards.

This guide offers clarity around the entire process, from that initial moment when the envelope arrives through to ongoing compliance and employee support. Whether you’re an HR professional or this is your first encounter with attachment orders, you’ll find practical, step-by-step guidance to handle these situations.

What is an Attachment of Earnings Order?

An Attachment of Earnings Order (AEO) is essentially the court system’s way of ensuring debts get repaid when other collection methods haven’t worked. It’s worth keeping in mind that this works differently across the UK, for example Scotland has Earnings Arrestments (EA). It’s a structured, legally enforceable payment plan that operates through the payroll system rather than relying on individuals to make voluntary payments.

These orders apply specifically to employees who receive regular wages or salaries. They’re not applicable to contractors, freelancers or self-employed individuals, whose irregular income streams make them unsuitable for this type of systematic deduction.

AEOs can cover a surprisingly wide range of debts. Criminal fines from magistrates’ courts, child maintenance arrears and civil debts like county court judgments all fall within scope. Each type carries different priority levels and calculation methods, which becomes particularly relevant when multiple orders are in play.

The system includes built-in protections to prevent people from being left unable to meet basic living costs. Courts set protected earnings rates that establish minimum income levels, ensuring that debt recovery doesn’t push employees into genuine hardship. It’s a balanced approach that recognises both the legitimate need to recover debts and the human reality of keeping food on the table.

What to do when you receive an AEO

Your first task is confirming that the named employee actually works for your business. It might seem obvious, but names can be similar, National Insurance numbers can be transcribed incorrectly and people do move jobs. Check the employee’s full details against your payroll records to ensure you’re dealing with the right person.

Once you’ve confirmed the employee’s identity, scrutinise every detail on the AEO. Look at the debt type, creditor information and specific deduction instructions. Pay particular attention to whether this is classified as a priority or non-priority debt, as this significantly affects how calculations work and what takes precedence over other potential orders.

Your payroll system will need updating to accommodate the new deduction. Most modern systems can handle these requirements, but you might need to create specific deduction codes or categories to maintain proper records and ensure the amounts appear correctly on payslips. If you’re looking for a payroll system that can handle these nuanced requirements, you can speak to our payroll experts to get started.

Don’t forget the paperwork. Courts require responses, typically within eight days, confirming receipt and providing essential information about the employee’s earnings and employment status.

AEO action checklist: First eight days:

• Verify employee identity and employment status
• Check all order details (NI number, name, debt type)
• Update payroll system for next pay period
• Employees to complete Form N56 with accurate earnings information
• Send response to specified address within deadline
• Set up record-keeping system for ongoing compliance
• Brief relevant staff on confidentiality requirements

Required forms and timelines

The employee has eight days to return the N56 form and this deadline includes weekends and bank holidays, so prompt action is essential. This is not a guideline or suggestion, but a strict legal requirement that the court monitors closely.

Form N56 (Statement of Earnings) is issued to the employee alongside most AEOs and must be completed by the employee, not the employer. The employee is required to provide detailed information about their gross weekly or monthly earnings, any existing attachment orders, and other relevant deductions that could affect the calculation.

Accuracy is critical, as incorrect or incomplete information from the employee can lead to incorrect deductions and potential compliance issues.

If your employee has variable hours or fluctuating pay, use the most recent representative information available. Don’t try to predict future earnings or average out seasonal variations unless specifically instructed to do so by the order.

Submit the completed form to the address specified on the AEO, this might be the court, local authority or designated collection agency. Keep comprehensive records of what you send and when, as this documentation becomes crucial if questions arise later about your compliance.

How to calculate and apply deductions

AEO calculations follow government-published tables that balance debt recovery with employee welfare. They’re carefully calibrated to ensure people can maintain basic living standards while making reasonable progress on debt repayment.

The deduction tables, updated annually on Gov.UK, specify maximum amounts based on net weekly or monthly earnings after tax, National Insurance and pension contributions. The system recognises that someone earning £300 per week has very different financial capacity compared to someone earning £3,000 per week.

Protected earnings rates sit at the heart of the calculation system. These represent the minimum amount employees must retain to cover essential living costs like rent, food and utilities. No matter how large the debt or how many orders exist, deductions cannot reduce take-home pay below this protected level.

Priority orders get preferential treatment in both calculation methods and payment hierarchy. Maintenance payments and council tax typically allow higher deduction rates than civil debts, reflecting their importance in the broader social framework. When multiple orders compete for limited available earnings, priority debts get first claim on anything above the protected rate.

For employees with irregular earnings, you can calculate deductions based on each individual pay period rather than attempting to average across multiple periods. This approach ensures the protected earnings principle operates correctly even when income fluctuates significantly.

Example calculation of a AEO deduction

Let’s work through a practical example. Consider an employee earning £2,000 gross per month, with deductions for tax, National Insurance and pension contributions totalling £400, leaving net monthly pay of £1,600.

Current deduction tables show that someone with net monthly earnings of £1,600 has a protected earnings rate of approximately £1,070. This means the maximum possible monthly deduction would be £530, though the actual amount depends on the specific debt type and table rates.

For non-priority debts, the deduction might be considerably lower than this maximum. Priority debts like maintenance or council tax could utilise more of the available amount, but still within the protected earnings framework.

Multiple AEOs add complexity but follow logical rules. Priority orders get calculated and applied first, using whatever portion of the available amount above protected earnings they require. Non-priority orders then share any remaining capacity, with some potentially receiving reduced payments or no payments in periods where insufficient funds are available.

The Gov.UK guidance provides detailed calculation examples and current deduction tables that payroll teams should bookmark for regular reference. If you’re still feeling unsure about how to calculate AEO for your employees, reach out to our team of HR and Payroll advisors for more tailored advice.

Employer responsibilities under an AEO

AEOs create ongoing legal obligations. These responsibilities require consistent attention and proper administration throughout the order’s duration. You’ll be expected to deduct the correct amount from each pay period and send payments to the designated recipient within specified timeframes. Most AEOs operate on monthly payment cycles regardless of your normal payroll frequency, though some may have different arrangements clearly stated in the order documentation.

Transparency with employees is legally required. Each deduction must be clearly shown on the payslip, typically as a separate line item that identifies both the amount and the nature of the deduction. Employees have the right to understand how their pay is being affected, and this visibility helps them track progress on debt repayment.

Record-keeping becomes crucial for AEO compliance. Maintain comprehensive documentation of all deductions made, payments sent and correspondence related to the order. These records prove invaluable if questions arise about handling or if courts request additional information during reviews or audits.

Communication with the issuing authority is required whenever circumstances change. Employee departures, extended unpaid leave or significant changes in earnings that affect deduction calculations must be reported promptly to ensure the system continues operating correctly.

Managing multiple orders requires careful attention to priority rules and calculation hierarchies. The total of all AEO deductions cannot breach the protected earnings threshold, regardless of how many orders are in effect simultaneously.

Penalties for employer non-compliance

The consequences of AEO non-compliance can be more serious than many employers realise. Courts don’t take a casual approach to these legal obligations, and penalties reflect the importance of the system in helping people resolve debt issues.

Employers who fail to make required deductions or send payments as specified may become directly liable for the amounts that should have been deducted. This means the employer becomes responsible for paying the employee’s debt, transforming an administrative duty into a direct financial obligation.

Financial penalties can be imposed for various compliance failures, from missed deadlines to incorrect calculations. These fines operate separately from any liability for missed payments and can accumulate over time if problems aren’t addressed promptly.

Contempt of court charges represent the most serious consequence, typically reserved for deliberate non-compliance or repeated failures to meet obligations despite warnings. These charges carry significant penalties and can seriously damage business relationships with courts and other public authorities.

The reputational impact extends beyond immediate penalties. Poor compliance history with HM Courts & Tribunals Service, local authorities or other issuing bodies can affect future dealings and may result in increased scrutiny of your business’s handling of legal obligations.

Regular process audits and comprehensive documentation provide the best protection against penalties, demonstrating good faith efforts to comply with orders even when minor errors occur.

Common AEO compliance mistakes to avoid

Business owners always have a multitude of things on their minds at any given time, but ensuring you abide by AEO compliance is essential. Here is a list of common AEO compliance mistakes you’ll definitely want to avoid: 

• Missing the 8-day response deadline to debtors
• Calculating deductions on gross rather than net earnings
• Failing to apply priority order hierarchies correctly
• Not updating deduction amounts when pay changes
• Sending payments to wrong addresses or accounts
• Inadequate record-keeping of deductions and payments
• Not informing employees clearly about deductions
• Continuing deductions after order expires or employee leaves
• Discussing AEOs inappropriately with other staff

How to support employees under an AEO

Supporting employees dealing with AEOs requires balancing genuine helpfulness with appropriate professional boundaries. Approach conversations with sensitivity and discretion. AEOs can be sources of considerable stress and embarrassment, so conduct discussions privately and avoid any mention of the matter in front of colleagues.

Provide clear, practical information about the process. Explain when deductions will start, how they’ll appear on payslips and what employees can expect throughout the duration of the order.

You can also help employees find professional debt advice services. Some organisations offer free, confidential guidance and can provide expertise that employers can’t. Present these resources as helpful tools rather than suggesting the employee needs immediate intervention.

Offer to verify calculations or help employees understand payslip information. While you can’t advise on the debt itself, you can explain the employment-related aspects of how deductions are calculated and applied. This transparency helps people feel more in control of their situation.

One of the most important steps is to ensure fair treatment remains constant. AEOs are confidential matters that should never influence performance reviews, promotion decisions or other employment-related opportunities. Financial difficulties don’t reflect work performance, and maintaining this separation is both legally and fundamentally important.

Consider whether existing employee support services might be relevant. If you offer employee assistance programmes or other wellbeing resources, these could provide valuable support, though any suggestions should be made tactfully and without pressure.

How can Employment Hero help

Attachment of Earnings Orders can seem complex at first, but the right tools can help them become a manageable part of payroll administration. Prioritising accuracy, transparency, and confidentiality helps both your business and your employees navigate these orders smoothly.If you’re ever unsure about calculations, deadlines, or the right way to handle multiple orders, our payroll and HR Advisory teams are here to provide guidance tailored to your business.

Managing people is never just about rotas, payroll and the occasional team lunch. It’s also about understanding the rights that protect your employees, whether they’re clocking in two days a week or working reduced hours alongside family commitments. 

Part-time workers make up a huge part of the UK workforce, and if you get their rights wrong, you risk more than a letter from ACAS. You could damage trust, morale and even your reputation as an employer.

This guide is here to help Human Resources (HR) teams and Small-to-Medium Enterprise (SME) leaders navigate the essentials of part-time employment rights, so you can manage compliance, keep things fair and build a workplace people actually want to be part of.

What qualifies as a part-time worker in the UK?

A part-time worker is anyone who works fewer hours than a comparable full-time employee in your business. According to Gov.uk and ACAS, there is no strict threshold for what counts as “part-time”. It could be someone working 30 hours a week in a retail role, or someone contracted for two short shifts a week in hospitality.

In SMEs, typical part-time roles often include shop assistants, receptionists, administrative support roles, hospitality staff, and increasingly, professional roles like accountants or marketers working reduced hours. The key point is that their terms and conditions can’t be less favourable just because they work fewer hours.

Core employment rights for part-time workers

The Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 ensure that part-time staff are protected from discrimination. In plain terms, if a full-time employee is entitled to a benefit, training opportunity, or fair rate of pay, so is their part-time counterpart, pro rata.

Part-time staff must be paid the same hourly rate as full-time staff doing the same job. This principle extends beyond basic wages to include overtime rates, shift premiums and performance-related pay. Annual leave, parental leave and sick pay apply on a pro-rata basis, ensuring that reduced hours don’t mean reduced rights. 

From pension contributions to staff discounts, benefits must not be withheld simply because someone works fewer hours. Employers must also ensure equal access to development opportunities, meaning training courses, mentoring programmes and promotion opportunities should be available to all staff regardless of their contracted hours.

Less favourable treatment is unlawful. If a full-time employee gets an annual bonus, the part-time employee should receive the equivalent proportion, based on hours worked.

Holiday entitlement for part-time workers

Holiday entitlement can be tricky, particularly when bank holidays come into play. The UK statutory minimum is 5.6 weeks’ paid holiday per year. For part-time staff, this is calculated pro rata according to the number of days or hours worked.

Bank holidays can cause confusion, especially if your business usually closes on those days. The law does not require employers to give bank holidays as paid leave, but part-time workers must not be treated less favourably. Offering pro rata bank holiday entitlement is the fairest approach.

Sick pay, parental leave and other leave rights

Part-time workers may be eligible for Statutory Sick Pay (SSP) if they meet the qualifying criteria, which includes earning at least the Lower Earnings Limit (£125 per week in 2025). SSP is paid for up to 28 weeks and is not reduced simply because the employee works part-time.

Parental leave entitlements, including maternity, paternity and adoption leave, apply equally to part-time workers. The difference is in pay, which is calculated on average weekly earnings. A part-time worker earning less will receive lower statutory pay, but the right to time off remains the same.

Other statutory leave, such as shared parental leave or time off for dependants, must also be applied fairly to part-time contracts.

Pension rights for part-time staff

Auto-enrolment duties apply to eligible part-time staff in the same way as full-time employees. If they are aged between 22 and State Pension Age, and earn more than £10,000 per year from your business, they must be automatically enrolled in a workplace pension.

Even if they earn less than £10,000 but more than £6,240, part-time employees can opt in to receive employer contributions. As an employer, your responsibilities for pension contributions remain consistent regardless of the employee’s hours.

Redundancy rights for part-time employees

Redundancy is never easy, but part-time workers must not be disadvantaged in the process. Redundancy pay calculations follow the same statutory formula for part-time staff as full-time employees, based on their actual weekly pay and length of service. This means a part-time employee with the same length of service as a full-time colleague will receive proportionally fair compensation. 

Choosing employees for redundancy based on working hours alone is discriminatory and unlawful, as is any selection criteria that disproportionately affects part-time workers. The consultation process, notice periods and appeal rights all apply to part-time staff in exactly the same way as their full-time peers, ensuring fair treatment throughout what is already a difficult process.

Zero-hours contracts and part-time workers

Many part-time workers in retail, hospitality and care sectors work on zero-hours contracts. While these contracts offer flexibility, they come with specific considerations that differ from traditional part-time contracts.

Zero-hours workers still have the right to the National Minimum Wage, holiday pay calculated on hours actually worked and protection from less favourable treatment compared to permanent staff doing similar work. 

Since 2015, exclusivity clauses in zero-hours contracts have been banned, meaning workers can seek employment elsewhere. However, employers are not obligated to provide minimum hours, and workers are not required to accept shifts offered.

The key difference lies in holiday pay calculations. For zero-hours workers, holiday pay should be calculated using the average of the previous 52 weeks of earnings, including only weeks where they actually worked and earned money.

Managing different contract types

Part-time workers don’t all fall into the same category, and understanding these distinctions is crucial for compliance.

Agency workers gain the right to equal treatment with permanent staff after 12 weeks in the same role, including basic pay, holiday entitlement and access to facilities. Fixed-term part-time workers have the same rights as permanent employees and cannot be treated less favourably simply because their contract has an end date.

Right to request flexible working

From April 2024, all employees have the right to request flexible working from day one of employment, not after 26 weeks as previously required. This has significant implications for part-time workers who may want to adjust their patterns.

Employees can make two requests per year, and employers must respond within two months. The eight business reasons for refusal remain, including burden of additional costs, inability to reorganise work among existing staff and detrimental impact on performance. However, employers must consider each request properly and cannot dismiss them without genuine consideration.

For part-time workers, common flexible working requests include: 

• Changing days worked
• Adjusting start and finish times
• Moving between different locations. 

Employers should have a clear policy and handle all requests consistently.

Performance management for part-time staff

Managing performance fairly across different working patterns takes a bit of thought, but it doesn’t have to be complicated. Part-time employees deserve the same structured approach to performance as their full-time team members, with clear objectives, regular check-ins and opportunities to grow.

The tricky part is usually scheduling. Reviews and one-to-ones should happen within an employee’s contracted hours. If that’s not possible, employers should consider paying for any extra time spent in meetings. Just as importantly, objectives need to be proportionate to the hours worked. Setting full-time targets for part-time staff would be unfair, and sets everyone up for frustration.

Documentation can be your best friend here. Because part-time hours often mean less day-to-day contact, informal feedback might slip through the cracks. Keeping records of progress, achievements and development conversations ensures consistency and means no one feels overlooked.

When part-time workers have multiple jobs

More people are choosing to balance multiple part-time roles, and this can raise a few questions for employers. The good news is, most of the rules are straightforward once you know them.

Holiday entitlement is calculated separately for each job. As an employer, you’re only responsible for holiday pay based on the work done for you, not for any other employer. You also can’t ban someone from taking a second role unless it genuinely conflicts with your business interests or breaches their contract.

Statutory leave works in a similar way. If an employee qualifies for maternity, paternity or adoption pay in more than one job, they’re entitled to receive it from each employer. There are overall caps on statutory pay, but the entitlement itself is separate.

The main thing to focus on is communication. Make sure your employee’s working patterns are clear and manageable so they can meet their commitments to you without burning out. A little flexibility and understanding here can go a long way in building trust.

Record keeping and evidence requirements

If there’s one thing tribunals love, it’s paperwork. And if there’s one thing that keeps employers out of trouble, it’s also paperwork. Keeping accurate, consistent records is essential for showing your employees that you’re treating them fairly.

The essentials include: 

• Payroll data showing hourly rates and calculations
• Training attendance records for all staff (not just the full-timers)
• A clear log of flexible working requests and decisions. 

It’s also wise to keep copies of all communications around terms and conditions, policy changes and consultation notes. That way, if a question ever arises, you’ve got a full trail to refer back to.

Holiday pay is a common sticking point. For part-time or irregular hours staff, accurate records of hours worked across rolling 52-week periods are key. When disputes arise, the first thing an employment tribunal will look at is your data. If you can show consistency, accuracy and transparency, you’re in a far stronger position.

If this all sounds like a lot of admin, it is. But HR software that tracks entitlements automatically can take the sting out of it, reducing both your workload and the risk of human error. If you’re looking for a good place to start, Employment Hero’s HR software can help you manage your team from onboarding to offboarding.

Common employer mistakes and how to avoid them

Even the most well-intentioned SME employers can stumble into the same pitfalls when managing part-time staff. Here are some of the big ones to watch out for:

• Loading part-timers with unsociable shifts. If your part-time employees always end up with the Friday night or Sunday morning slots, while full-timers enjoy the nine-to-five, that could be seen as less favourable treatment.
• Leaving part-time staff out of the loop. “We didn’t invite you to the meeting because you’re not usually in on that day” can still be seen as unfair treatment. Important meetings should be scheduled during core hours where possible, or at least backed up with recordings and summaries.
• Guessing holiday pay. Rounding up, rounding down or using “rough estimates” for holiday entitlement can lead to underpayment claims. Proper calculations based on actual hours worked are non-negotiable.
• Assuming less commitment. A part-time worker may only be with you three days a week, but that doesn’t mean they’re less interested in training or promotion. In fact, overlooking them for progression can lead to both legal trouble and morale issues.

Cost considerations and business benefits

Tribunal awards for part-time discrimination can run into thousands, not to mention legal fees and reputational damage. Prevention through clear policies, training and good record-keeping is always cheaper than firefighting after the fact.

On the flip side, fairly treated part-time staff are more likely to stay. And high retention means lower recruitment costs and stronger team continuity. 

By offering part-time roles, you also open up your business to a wider talent pool, including skilled professionals who need flexibility, parents returning to work, and people bringing diverse experiences from multiple jobs.

Discrimination risks specific to part-time work

Part-time work often intersects with the equality law. Because three-quarters of part-time workers in the UK are women, less favourable treatment often amounts to indirect sex discrimination. That includes overlooking progression opportunities, limiting training access or refusing requests to return part-time after maternity leave.

Disability-related adjustments are another area to watch. Part-time arrangements are often part of reasonable adjustments, and treating someone less favourably because of this is unlawful.

Age assumptions can also creep in, with part-time roles stereotyped as being for students or for people easing into retirement. In reality, part-time work spans all career stages.

Preventing less favourable treatment

Direct discrimination is obvious, like denying training to a part-time employee because they’re not full-time. Indirect discrimination is subtler, such as scheduling mandatory team sessions when you know half your part-time team isn’t contracted to be there.

Tribunals don’t look kindly on either form of discrimination. The safest approach, and most ethical, is to treat them as core team members, with equal access to opportunities. Flexible working requests should always go through the correct statutory process, with decisions documented clearly.

Best practices for employers managing part-time staff

Make sure contracts and policies are watertight, with entitlements and expectations set out clearly. Share shifts fairly, rather than loading part-time staff with unpopular hours. Keep them in the loop with team updates, meetings and social activities.

Even small things make a big difference. Recording a meeting so someone can catch up later, or planning training during core hours, shows respect and helps part-time staff feel integrated. And that sense of belonging is what keeps people motivated.

How can Employment Hero help?

From retail staff to finance managers, part-time employees bring flexibility and talent to SMEs.

If you are unsure about your obligations, now is the time to review your contracts, policies and HR practices. Our HR advisory team can provide support, and we also offer templates and checklists to help you stay up to date on compliance with UK employment law.

Releasing licensees is one of the most difficult decisions that a business can be faced. In addition to the management of the fair process, it is important to comply with your legal obligations concerning the remuneration of redundancy. Being can lead to expensive litigation and court complaints.

We will guide you through what the statutory redundancy salary is, which is qualified, how it is calculated and what you need to do to stay in conformity. It also covers current errors, tax considerations and frequently asked questions so that you can feel confident to manage redundancy payments in accordance with British law.

What is the statutory remuneration of redundancy?

The statutory redundancy salary is the minimum amount that an employer must provide to eligible employees who are dismissed. This is a legal obligation under the British employment law and acts as a financial cushion when a role is no longer required.

The eligibility is based on age and continuous service. Employees must have worked for their employer for at least two years to qualify. The exact amount depends on their age, duration of service and their weekly salary (up to the fixed limit of government).

For personalized calculations, employers and employees can use the legal calculator of redundancy wages of the British government.

Who is eligible for a statutory redundancy salary in the United Kingdom?

Not all employees will be eligible for statutory remuneration. The law establishes clear rules on which is entitled and not to follow them may put employers at risk of non-compliance.

To be eligible, an employee must meet the following criteria:

• Service duration: The employee must have at least two years of continuous service with the same employer. The service includes time spent on statutory leave, such as maternity or parental leave.
• Reason for dismissal: The dismissal must be due to redundancy, not misconduct or resignation. If an employee is dismissed for gross fault, he is not entitled to redundancy.
• Type of contract: Full -time and part -time employees are covered. Fixed -term employees can be eligible if their contract is completed early due to redundancy. If a fixed -term contract naturally ends on its agreed date, the redundancy salary is generally not due.
• Work provisions: Employees on maternity leave, paternity leave, adoption leave or shared parental leave still retain the right of redundancy if they are eligible by time of service.
• Age: There is no age restriction on law, but age is a factor in the way payments are calculated.

Who is not entitled?

Some workers are not covered by statutory redundancy remuneration rules. These include:

• Independent entrepreneurs or workers from the agency.
• Members of the armed forces.
• Servants of the crown and police (because they have separate provisions).
• Employees who refuse an appropriate alternative role offered by their employer for no valid reason.
• Employees who work for less than two continuous years.

It is important for employers to carefully assess eligibility before making redundancy payments. Errors in this area are a common cause of disputes and can lead to complaints through a job court.

How is the statutory redundancy salary calculated?

The legal redundancy of redundancy follows a formula defined according to age, duration of service and weekly remuneration. The weekly salary is capped at a maximum set of the government. For the 2025 taxation year, the maximum weekly salary is £ 719.

The calculation is:

• A semi-emaine salary for each full year under 22 years old.
• A salary week for each full year between 22 and 40 years.
• A week and a half of salary for each full year on the age of 41.

Example worked

If a 45 -year -old employee has 10 years of continuous service and earns £ 600 per week:

• 5 years a week per year = 5 weeks of salary.
• 5 years a week and a half per year = 7.5 weeks of salary.
• Total = 12.5 weeks salary at £ 600 = £ 7,500.

Employers who are not sure of the exact amounts should consider using payroll software or asking for advice from a payroll professional.

Is statutory redundancy taxable?

No. Redundancy payments of up to £ 30,000 are exempt from tax and national insurance. This means that the statutory redundancy salary is not taxable in most cases.

If an employer offers an improved redundancy reduction or other termination payments which take the total of more than £ 30,000, the surplus will be subject to taxes.

How employers can remain in conformity

Redundancy payments are a legal right and employers must manage them correctly to avoid penalties or court complaints. Compliance is not only to pay the correct amount, but also to follow the appropriate processes, to keep specific registers and to communicate clearly with the employees.

Here are the main responsibilities for employers:

• Provide written details: Employees must receive a written declaration explaining how their redundancy salary has been calculated. This should include their service life, their age band, their weekly salary figure and the final amount due. Clear written ventilation helps prevent disputes.
• Pay on time: Remuneration of redundancy should normally be carried out no later than the last day of employment of the employee. In some cases, employers may agree to pay shortly after, but delay payment for no reason may result in complaints in a job court.
• Hold the precise records: Employers must keep copies of redundancy calculations, letters and payment confirmations. The good hold of files supports HR compliance and helps defend the company if it is disputed later.
• Report special circumstances: Employees on maternity leave, adoption leave or shared parental leave are always entitled to a reduction in redundancy if they meet the service requirement. Employers should not ignore these cases.
• Clearly communicate: Redundancy is a sensitive process, so clear communication is essential. Written confirmation should describe not only payment, but also notice periods, the last working day and any other right. Employers can use our redundancy notice model to ensure that they cover the essentials.
• Understand improved redundancy: Some employers choose to offer more than the statutory minimum, either in the context of business policy, or as a gesture of good will. Although this is optional, it must be clearly identified as “improved” to avoid confusion with legal obligations.
• Follow fair redundancy procedures: Even when the payment itself is correct, the fact of not following a fair process can lead to allegations of unfair dismissal. Employers should ensure the consultation, the criteria for selecting fair fairness and an appropriate opinion. For more information, see our redundancy process guide.

Why compliance is important

Obtaining poor redundancy salary can have serious consequences. Employers can be confronted:

• Court complaints for reducing unpaid redundancy.
• Remuneration ordinances with added interest.
• Reputation damage for poor management layoffs.
• Higher legal costs if disputes increase.

The use of HR compliance tools and payroll software can facilitate the calculation of payments with precision, issue correct documents and maintain compliance with British employment law.

How is improved redundancy differs?

The reduction in improved redundancy is any additional amount that an employer chooses to offer beyond the statutory minimum. This can be part of a company policy, a contractual agreement or a goodwill gesture.

It is important for employers to make a clear distinction between the statutory redundancy salary (the legal minimum) and improved remuneration (optional recharge).

Current errors Employers do with a wage redundancy

Redundancy remuneration errors can lead to disputes and court complaints. Some of the most common errors include:

• Poorly calculating the service duration (for example, excluding part of a notice period).
• Do not include part -time employees in redundancy salary calculations.
• Do not issue written confirmation of redundancy payments.
• Displaying statutory redundancy pay with an improved package.

To avoid problems, employers can use our redundancy notice model.

Take out the stress of compliance with pay with the hero of employment

Redundancy is never easy, but properly management of legal redundancy is essential to stay in conformity and support your employees by change. By understanding the rules, by calculating payments with precision and keeping clear recordings, you can reduce the risk of disputes and protect your business.

If you want to simplify payroll, automate calculations and stay informed of compliance, the employment hero’s pay software can help. From the management of the redundancy of daily payroll tasks, our tools give you precision, efficiency and peace of mind.

Redundancy FAQ

Are part-time workers eligible for redundancy payments?

Yes. Part -time employees are eligible for the remuneration of legal dismissals as long as they meet the two -year continuous service requirement. Their redundancy salary is calculated in the same way as full -time workers, depending on their real weekly income. If the weekly salary of an employee varies, the redundancy salary is based on the average hourly rate over a period of 12 weeks.

Is redundancy the same for part-time employees?

The formula is the same, but the weekly remuneration figure is lower because it is based on the employee’s contract.

Can we offer more than the statutory minimum?

Yes. Employers can choose to offer an improved redundancy salary, but this should be specified in the letter of redundancy and the employee’s contract conditions.

What if an employee refuses another role?

If an employee is offered an appropriate alternative role and unreasonably refuses, he can lose his right to the remuneration of statutory dismissals.

Can an employee give up redundancy?

Employees cannot generally give up their right to statutory redundancy. The exception is if they accept a settlement agreement, which must be signed with independent legal advice.

To what extent should redundancy payments be made to employees?

Redundancy must be carried out or shortly after the employee’s last day of employment. If payment is late, employees can bring the case to a job court.

The changes in the invoice of employment rights are looming on the horizon, the government has now announced its calendar for the implementation of changes to the British employment law.

Although the bill has not yet been approved by Parliament, which means that none of the modifications or dates are fixed, it seems very likely that most, if not all, will take place as planned.

So, when it comes to changes, when will they go exactly in force and how can your business prepare for it?

When will the bill on employment law come into force?

This month, the government released its roadmap for the delivery and implementation of the bill on employment rights. Their plan includes a progressive approach because they wish to give companies the possibility of browsing the changes with them, thanks to the commitment and the consultation on political measures, as indicated in their “next steps to do work work”.

Here we have exactly what changes and when.

Immediately

As soon as the bill is approved by the Parliament (otherwise known as the Royal Assistance), the following policies come into force:

• Changes for unions.
• New protections preventing dismissal for participating in industrial action.

April 2026

At the start of the new fiscal year (26/27), the following policies will come into force:

• Double the protection price for collective redundancies.
• The first day of paternity and unpaid parental leave.
• Improved denunciation protections.
• Establishment of a fair work agency.
• Country of statutory disease (withdrawal from the lower limits and making the leave available from the first day of absence).
• Simplification of the recognition of unions and digital voting systems / workplace.

October 2026

At the time of the fall budget of 2026, the following policies will come into force:

• Prohibition on fire and recovery.
• Launch of an organization for negotiating the salary agreement for social care for adults.
• Stronger tilting laws.
• The employer’s duty to take “all reasonable measures” to prevent sexual harassment.
• Enlarged union rights.
• Limits and protections of the stricter employment court for those who take industrial measures.

2027

Beginning the new year, the following policies come into force:

• Mandatory sex remuneration gap and menopause action plans for larger employers.
• New rights for pregnant workers.
• Flexible labor rights have been strengthened.
• Mourning has been extended.
• Limitation of the use of zero hour contracts; Obligations to provide changes / cancellation of a quarter change.
• Upap business regulations.
• First day of unfair dismissal rights.

Discover all the details of the calendar proposed by the government here.

How will provisions work and when are the consultations?

More details on the operation of the new provisions will be contained in separate legislation which will be introduced on a later date. The government also consults the public on what should enter these regulations.

Consultations must take place in summer / fall 2025 to cover the exact details concerning:

• Make an unfair dismissal one day on the right.
• The ban on fire and recovery.
• Parental mourning leave.
• Rights related to pregnancy.
• The prohibition of zero hours contracts.

However, consultations on flexible work and collective redundancies are planned for the winter of 2025, at the beginning of 2026.

Feel confident with the compliance of your business with the job hero

All employers will have to ensure that they update their policies, procedures and contracts to align themselves with new laws, as well as to ensure that their pay system is set up to take into account the various changes that affect paid employees and the leave they can take. Keeping your policies will be essential as we progress in the government’s calendar.

Our HR advisory team is always at hand to help you with your compliance needs and provide advice during these changes. You can contact them for a compliance health check, or catch them in our next employment webinar, where they will help you navigate current and future changes.

The Construction Industry Plan (CIS) is something that whoever manages the wage bill in the construction industry should be familiar. But we understand, there is a lot to consider when performing the pay (and it’s not easy), so if the CIS deductions are new to you, here is all you need to know.

What is the construction industry program?

The construction industry regime is a tax regime where entrepreneurs deduce money from their payments to subcontractors and transmit it to HMRC. These deductions contribute to the annual payments of the national tax and national insurance.

It was introduced in 1997 and updated in 2007 and 2014 to facilitate it. It was intended to be a means of promoting fiscal compliance in the construction industry, which is often based on contracts and subcontracting.

Who is affected by CIS diagrams?

The CIS implies both entrepreneurs and subcontractors, although it affects each in different ways. It is important to keep in mind that it can also apply to your business if you spend a lot of money under construction, even if you are not a construction company.

It is compulsory for entrepreneurs to register for CIS. The means that if you hire subcontractors to carry out construction work, or if your business has spent more than 3 million pounds sterling for construction within 12 months, you must register for the program.

CIS covers several types of businesses, from large companies to self -employed workers. They may not always be in the definition of a construction company. An entrepreneur could be a department of local authorities or a retail company if they hire construction subcontractors.

Who should register for CIS?

Entrepreneurs

Entrepreneurs who pay subcontractors for construction work must register for a CIS regime.

Keep in mind that as an entrepreneur, you must register for a construction industry program before taking subcontractors. You can do it online by registering as a new employer on Gov.uk.

Subcontractors

Subcontractors can register for CIS deductions, but it is not compulsory. Although it may not be essential, it is advisable to register as a subcontractor because you reduce your tax bill. Indeed

If you start as a subcontractor company or a single merchant, don’t forget that you need to get a single (UTR) of taxpayers, you can get it through self-assessment. Once you have a UTR, it must then be activated for CIS, online or via the assistance line.

What companies are exempt from CIS?

Certain types of construction industry companies do not have to register if they only do certain jobs. These include:

• Scaffolding rental (without work)
• Manufacturing materials used in construction
• Deliver building materials
• Provide site facilities such as catering
• Architecture and survey
• Adjusted carpets
• Work paid by a charity or confidence
• Work paid by a director organ or a leader of a school maintained on behalf of the local educational authority
• Work on the property of the subcontractor and worth less than £ 1,000 (excluding equipment), which requires contact with the CIS assistance line for exemption.
• For “renowned entrepreneurs”, CIS does not apply to payments for work on ownership (and not for sale or rent) intended for their own commercial use, or a construction contract of a value of less than £ 1,000 (excluding equipment), also requiring contact with the CIS assistance line.
• Direct work for a private owner (not an entrepreneur) is exempt, with full payments.
• Other advisory works beyond architecture and surveying, such as structural engineering calculations, designers and scientists, are also exempt.
• The decoration or minor modifications where the cost of construction works does not exceed £ 1,000, excluding construction materials, can also be eligible for the CIS exemption, subject to confirmation of the HMRC.

You can find more detailed information and see if your business is free from Gov.uk.

What are the responsibilities of entrepreneurs and subcontractors in the CIs?

Entrepreneurs

The first responsibility for entrepreneurs is to ensure that you are registered before using subcontractors on construction projects.

Entrepreneurs are also responsible for verification with the HMRC that a subcontractor is registered with CIS before paying them. This allows you to know how much deduction for the tax.

Remember that an unregistered subcontractor will be deducted by 30% while a subcontractor recorded by CIS will be deducted by 20%. CIS deductions apply only to the portion of payment of work. They do not apply to materials, VAT, factory rental, fuel or other expenses.

The entrepreneur is responsible for deducting these payments and sending them to the HMRC as a monthly return. These yields must include complete information on the subcontractor and the payments made to them. Entrepreneurs are also required to provide monthly statements to subcontractors within 14 days of the end of each month of taxation.

Subcontractors

Although registration for CIS is optional for subcontractors, and we know that doing so involves filling another form, but the lower tax rate is worth it.

It is the responsibility of the entrepreneur to make the real deductions of your invoices, but as a subcontractor, you must also keep copies of these payments for your own files.

Even if entrepreneurs are responsible for making tax deductions, you will always have to point out with precision all your CIS deductions on your self-evaluation at the end of the tax year. It is important to keep in mind that these files should be kept for at least 3 years.

Having a clear payment file will also help you if you need to claim a refund for excess deductions.

How does CIS have an impact on HR professionals and business owners?

If you are a business manager or a human resources manager in a construction firmcis will be part of your monthly tax workload and your invoicing.

But what does this really imply?

It is a question of ensuring that the correct deductions are carried out according to the tax state of the subcontractor as determined by HMRC. You provide monthly yields to HMRC showing these deductions, or by informing them that no return is due if this is the case in a particular month.

You will also offer your subcontractors to show monthly declarations to show that you make these deductions and payments within the framework of the CIS regime.

CIS compliance

Make sure that you follow compliance with the CIS program means that you and / or your subcontractors pay for the correct tax amount each month, avoiding any unpleasant surprises at the end of the financial year. It is also important to ensure that feedback is in time and precise to avoid being slapped with HMRC penalties.

Penalties for non-compliance

• Late return – HMRC will charge £ 100 if your CIS return is late for a day. This penalty increases over time. Here is a complete ventilation of the penalties for returns later than one day:
  • 2 months – £ 200
  • 6 months – £ 300 5% of CIS deductions to the declaration, according to what is higher
  • 12 months – £ 300 or 5% of CIS deductions to the declaration, according to the highest.
  • Later at 12 months – an additional penalty of up to £ 3,000 or 100% of CIS deductions to the declaration, according to the first possibility, can be applied. It is also important to note that a penalty can be canceled if the HMRC is informed that no subcontractor has been paid this month.
• Incomplete yield – missing or incorrect information on your CIS yields can cause penalties up to £ 3000.

In summary

The construction industry program is a system designed to promote compliance and clarity for entrepreneurs and subcontractors in terms of tax payment. Although it is compulsory for entrepreneurs, it is advantageous for subcontractors to register and obtain a tax reduction of 10%.

Do not forget to keep full files and stay up to date by providing information and payments to HMRC, as needed.

Rationalize the wage bill with the hero of employment

Staying in accordance with the construction industry program (CIS) does not have to be complex. With Employment Hero, CIS treatment is integrated into our fully integrated payroll system, which facilitates the management of verification, deductions and reports of subcontractors and reports in accordance with the requirements of the HMRC.

Our platform automatically manages CIS deductions, subjects monthly yields to HMRC and maintains up -to -date recordings, so that you can reduce the administrator, reduce errors and remain conforming with confidence.

Our job operating system combines payroll, HR, hiring and more in an intelligent platform.

A system, all the job.

With time off work due to poor mental health up by 41% in the last three years, psychological wellbeing has become an increasingly important part of employee wellbeing for HR managers and business leaders.

Yet for many, dealing with it remains the trickiest of tricky subjects, and providing the right support can be a challenge.

There’s also a big question around mental health leave. Is it mandatory? Is it effective? And how should it be implemented?

To give you some clarity, we’ve put together this short piece that explores the ins and outs of mental health sick leave, and explains why it’s crucial for you, your employees and your business. 

What is mental health sick leave?

The first step in providing your employees with exactly what they need is to understand what we mean by mental health sick leave.

According to the British Medical Association (BMA) there is no legal difference between taking leave for psychological wellbeing and leave for a physical problem, so they should be treated in exactly the same way ie. an issue that affects an employee’s ability to perform their day-to-day role. 

Mental health sick leave might include seeking treatment for mental health-related illnesses, or simply for taking some time out to recharge and focus on themselves. 

What are the reasons for taking mental health sick leave?

There are many reasons why an employee might need to take time off work, and all should be treated with respect and careful consideration: 

• Mental health disorders: Employees may need time off to manage diagnosed mental health conditions such as bipolar disorder, anxiety disorders, depression or schizophrenia. 
• Burnout and stress: Prolonged exposure to work-related stress or lack of work/life balance can result in burnout. This is where employees feel overwhelmed, exhausted and unable to cope with the demands of their role. Psychological wellbeing leave can help employees to recuperate and reset. 
• Trauma: If an employee has experienced significant trauma either in their personal life or a professional setting, they may require time off to process this event and seek professional help. 
• Crisis situations: A family crisis or personal loss can be another reason why employees require leave for their emotional wellbeing.

Whatever the reason, poor mental health can have a negative impact on both the employee and the workplace culture as a whole. Taking leave allows employees to return to work feeling refreshed and ready to perform effectively.

What qualifies an employee for mental health leave?

As we’ve mentioned already, we are all entitled to take time off for the benefit of our mental health, and it’s crucial that employees feel they can broach the subject of their emotional wellbeing and feel seen and heard. 

It’s also worth noting here that each employee must be dealt with on a case by case basis and no two situations are the same.

Nevertheless, there are still criteria for employees to access mental health leave:

• Employment status: Typically employees must be full-time to be eligible, and some companies may have waiting periods before employees can access it. 
• Medical documentation: There should be documentation from a medical professional to support the need for leave. This could include a diagnosis, treatment plan or simply a recommendation for time off. 
• Compliance with company policy: Before sick leave for psychological wellbeing can be granted for mental health reasons, employees must adhere to the process for requesting leave. 
• Legal protections and regulations: Employees could qualify for mental health leave according to the Equality Act 2010. Certain psychological health conditions are categorised as a disability if they have a substantial adverse effect on an employee’s life and are expected to last for at least 12 months. 

It’s so important to manage mental health leave correctly. Not just for the wellbeing of your employees, but also to prevent you and your business from facing any discrimination charges. It’s therefore vital you are aware of this criteria and the law on disability discrimination.

To help you streamline the leave process, it’s recommended to use an effective HR and payroll software that automates tasks and ensures compliance with UK laws. Employment Hero can take the hassle out of managing health-based leave requests and makes everything simple.

Is your business required to have a separate policy?

Your business doesn’t necessarily have to have a separate policy by law, but doing so could put you miles ahead in terms of cultivating trust amongst your team and showing support, demonstrating that wellbeing is an integral part of your company culture. 

Standard sick leave policies typically cover both physical and psychological health conditions but usually only the conditions that qualify as a disability apply here. 

What legal responsibilities do employers have toward sick employees

Employers have a moral duty to look after their team members and ensure their wellbeing and happiness. Psychological wellbeing conditions should be handled with extreme care and your approach plays a key role in combatting the stigma associated with it. 

However, business owners and HR professionals also have a legal obligation to provide emotional wellbeing support, and keep up to date with the ever-changing laws and regulations.

Here, we’ll take you through exactly what’s required:

Protection from discrimination

Employers must commit to legal responsibilities under the Equality Act 2010 which states that psychological wellbeing issues can be classified as disabilities if they substantially affect day-to-day activities. 

This means making modifications to working environments and providing flexible working arrangements. 

A duty of care

As employers, you have a duty of care to ensure a safe and healthy working environment for all of your employees, and this includes emotional wellbeing considerations. The Health and Safety Act encourages employers to foster a culture of safety and health within the organisation. 

Statutory Sick Pay (SSP)

Employees who are too sick to work, including those with psychological wellbeing conditions, are entitled to receive Statutory Sick Pay (SSP) if they are eligible (see criteria earlier in this document).

By fulfilling all these responsibilities, you’ll not only have a brilliant and thoughtful mental health leave support plan in place, you’ll also keep yourself covered and minimise the risk of any legal challenges.

How to manage mental health leave requests

Another tricky part of an effective leave policy is dealing with psychological wellbeing requests.

If done manually, these can be extremely time-consuming, and it’s why many businesses have turned to management software like Employment Hero. But whether you use EH or not, here are some of my top tips for managing psychological wellbeing leave requests: 

1. Create a coherent and supportive policy

Let’s start with what your mental health leave policy should include. It should specify which employees the policy applies to, as well as eligibility criteria and leave entitlements. It should also document the process for requesting leave and provide details for any medical documentation required. 

2. Encourage open discussion

For businesses looking to increase their awareness of employee mental health, it’s important to create regular opportunities for an open dialogue about emotional wellbeing in the workplace. For example, Mind, the UK mental health charity, recommends implementing routine check-ins between managers and team members, either weekly or fortnightly. This is a proactive approach to spot signs of stress early and offer support. 

These conversations should take place in a private, judgment-free setting, helping to normalise emotional wellbeing discussions and reduce stigma. Prioritising mental wellbeing in this way directly enhances the overall employee experience.

3. Handle employee disclosure empathetically and confidentially

Both the business and employee should:

• Ensure all discussions are held in a private setting to maintain the employee’s confidentiality and comfort 
• Ensure all documents are stored securely and any medical information is kept confidential
• Provide training for managers and HR personnel on how to approach these requests and discussions empathetically

4. Establish a clear process for self-certification

As a small business owner or HR professional, you want to create a supportive environment that empowers employees to take the time to prioritise their health and well-being. 

You could: 

• Define self-certification leave: Outline what self-certification means and how employees can request leave without medical certification. 
• Specify the types of leave that qualify: State which types of leave this covers and highlight the importance of responsible use. 
• Outline employee eligibility: Include which employees can utilise self-certification leave and the duration of leave. 
• Provide clear instructions: Detail the process of submitting a self-certification leave request. 
• Periodically review the process: Revisit the policy regularly and amend it where needed. 

How employers can support employees 

Small gestures can make a big difference to employee wellbeing. Here’s what you can do to help:

• Regular, pressure-free communication: Check in with your employees frequently and if they feel comfortable, encourage them to update you on their thoughts and feelings whilst still respecting their boundaries. 
• Resolving issues that may have contributed to ill-health: Investigate any issues and find ways to create a culture that is supportive of employees being open about their emotional wellbeing. 
• Access to an Employee Assistance Program (EAP): Think about what resources could be beneficial here? For example, at Employment Hero, we have an Employee Assistance Program offering free one-on-one counselling support. 
• Offering flexible work options: A more flexible working arrangement could be beneficial for employees who want a better work/life balance and greater control over their work conditions and routines. 

Returning to work

Returning to work after mental health leave can have unique challenges for employees, and creating a safe space is key to helping them feel more comfortable. 

You could start by:

• Ensuring open communication: Help employees feel more at ease with a relaxed open dialogue. This encourages honesty and transparency and clarifies any expectations regarding their return to the workplace. The return to work interview is a superb way to voice any queries, questions or concerns. 
• Providing support resources: Whether it’s counselling sessions, support groups or helpful pamphlets, ensure your employee has access to appropriate support.
• Adjusting job responsibilities: Evaluate the employee’s responsibilities and take note of any stressors, modifying accordingly.
• Re-assessing their work environment: Evaluate the current workspace and highlight any opportunities for positive change. 
• Creating a welcoming atmosphere: Foster a supportive work environment where psychological wellbeing is regularly discussed. 
• Hosting regular check-ins: Schedule regular one-on-one meetings to get a sense of the employee’s comfort levels and progress. 
• Promoting a healthy work/life balance: Champion flexible working or adjust hours to help the employee transition back into their role comfortably. 
• Providing training: Help your managers better understand their team members who have taken sick leave for mental health. 
• Recognising accomplishments: Upon the employee’s return, celebrate achievements both big and small in order to provide a warm welcome back to the workplace.

Not all of these tips will be right for your and your employee’s particular situation, but they should give you some idea of how to create a warm and inviting safe space from which to welcome employees back to work. 

Make wellbeing a priority with Employment Hero

Managing employee wellbeing is challenging but Employment Hero can support you while you support your employees. Together we can set new standards for managing mental health in the workplace and help you show up for your employees day after day. 

Thanks to the world’s first Employment Operating System, you can streamline HR processes including mental health leave requests and leverage Employment Hero’s capabilities ensuring employees feel supported and valued at all times. 

With advanced management tools to help businesses stay compliant and to promote a positive workplace culture, you’ll see employee morale skyrocket. Why not see how we can help you today?



So, you’ve got an interview coming up and want to make sure you’re choosing a company with a great culture? We’ve got you covered!

Understanding a company’s culture is like finding your squad – you want to work with the right people who share your values and interests. Just like you wouldn’t hang out with friends who don’t get you, finding the right work environment is crucial for a fulfilling career.

Which is why it’s so important to ask interview questions for culture fit, so you can start a new job confident you’re going to love your new work environment.

What is a culture fit?

As a potential employee, it’s all about finding the right “fit” for you in the work environment. Just like how we want to be around friends who share similar values and interests, everyone would like to build a career in a company where they feel comfortable and aligned with their way of doing things.

Why does company culture fit matter for job seekers?

Well, it’s important to note that company culture doesn’t matter to everyone. Some of us just want to clock in, clock out and get paid. And that’s fine! But poor workplace culture is a top issue for Gen Z workers, so if you’ve made it a goal to find a workplace with great company culture, keep reading.

Think about it. Most working Australians spend more time with their coworkers than their friends and family, so it would be great if we could feel comfortable and fulfilled during all those hours together. It’s also about respect, which plays a significant role in predicting a company’s culture rating, carrying over 18 times more influence than the other culture factors.

It’s no secret that the younger generations in the workforce get a bad rap for chronic job hopping —but often, a perceived toxic company culture is one of the main reasons they leave. If you really click with your company’s culture, you’re more likely to stay longer, which means more job satisfaction and less awkwardly handing in resignation letters every six months.

What makes a company a good cultural fit for you?

This will vary from person to person. A green flag for you may be an orange (or even red) flag for someone else. The best thing to do is sit down and really think: what kind of company culture suits me best? 

Here are some criteria to consider when making your decision:

Shared values

When you’re looking for a good cultural fit, it’s essential to find a company with values that align with your own. Take some time to research the company’s mission statement, core values, and any social causes they support. Make sure their values resonate with what you believe in and are passionate about. When your values align with the company’s, you’ll feel more connected to your work and motivated to contribute towards their mission.

Example: “I am passionate about sustainability, and I can see this company is on the 2023 Global 100 list. Green flag!”

Work environment

The work environment plays a big role in your overall job satisfaction. Consider the company’s culture and work atmosphere. Are they known for being collaborative and supportive, or do they have a more competitive and cutthroat approach? Check out employee reviews on platforms like Glassdoor to get insights into the company’s culture. Also, consider how the physical workspace feels to you when you attend interviews and ask interview questions for culture fit. A welcoming and friendly work environment can make you feel good about going into work and collaborating with your team.

Example: “I’m looking for a workplace that supports its employees, but my friend works at this company and they say their manager makes them feel unsupported. Maybe not the right fit for me.”

Room to grow

If you’re looking to grow your skills or get a promotion after your next position, this is something to consider. Look for companies that invest in their employees’ professional development through training programs, workshops, or mentorship opportunities. When asking interview questions for culture fit, ask about the career progression within the company. Are there opportunities for advancement? Are employees encouraged to take on new challenges and responsibilities? You want to work for a company that supports your growth aspirations and provides a path for you to move up in your career.

Example: “I’m happy where I am for now, but I think I want to step into a leadership position within the next 12 months. I know this company has a great leadership program so I am excited to work there.”

Perks

Work perks and benefits can add an extra layer of happiness and convenience to your job. Consider the additional benefits the company offers beyond salary. While work perks shouldn’t be the sole reason for choosing a company, they can be a tie-breaker between two potential employers with similar cultural fits. These extra benefits can make your work experience more enjoyable and show that the company values its employees’ happiness and satisfaction. 

Example: “I’m stuck between two positions with similar vibes and salaries – however, I know one company offers awesome benefits, like exclusive discounts and cashbacks on brands I love. Green flag!”

What does a good culture fit look like?

Picture this: You don’t dread getting out of bed and going to work. 

You feel like you’re on the same wavelength as your colleagues and aligned with the company’s values and goals. You feel comfortable with your team dynamic (whether that’s tight-knit, or more autonomous) and everyone gets along and supports each other. People communicate openly without any drama, and they’re cool with adapting to changes and learning new things. The company trusts you and lets you take charge of your work, but you also have support when you need it. They care about your self care and work-life balance and give you the freedom to handle your personal stuff. 

And here’s the most important part: you’re pumped up about where the company is headed in the future. People love working there, so they stick around for the long haul. 

How do you assess cultural fit in an interview?

You don’t have to wait until you’ve started in your new position to see if the company will be a good fit. Before you even ask interview questions for culture fit, you can start to look for clues. It’s better for both sides if you proactively assess the cultural fit during the job search and interview process. 

You can even start to put the pieces together before you even submit your application. When reading job descriptions, look out for:

• Unrealistic expectations: If the job description seems to demand an excessive amount of work hours, intense availability, or constant overtime, it may suggest a work culture that values long hours over work-life balance.
• Vague job responsibilities: A lack of clarity regarding job responsibilities may indicate a disorganised or poorly structured work environment. It’s essential to know what you’ll be working on to gauge whether it aligns with your skills and interests.
• Frequent hiring: If the company frequently posts the same job openings, it could indicate a high turnover rate and a lack of employee satisfaction.
• Lack of inclusion and diversity: A job description that doesn’t mention diversity and inclusion efforts might indicate a company that doesn’t prioritise creating an inclusive and diverse workplace.
• Lack of employee benefits or perks: A job description that doesn’t mention any employee benefits or perks could suggest a company that doesn’t prioritise its employees’ wellbeing or work-life balance.

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Research the hiring company’s culture before your interview

It’s always a good idea to research the company before an interview. While you’re checking out the website to prepare, you may notice:

• Company values and mission: Look for information about the company’s core values and mission statement. Understanding what they stand for can give you insights into their overall culture and priorities, and help you figure out if these resonate with you.
• Social media presence: Check the company’s social media profiles to see how they interact with employees and the public. Look for posts that showcase company culture, employee achievements, and community involvement.
• Leadership style: Research the company’s leadership team and their backgrounds. Leaders play a significant role in shaping a company’s culture, so understanding their management style can give you an idea of the work environment.
• Company awards and recognitions: Check if the company has received any awards or recognitions for its workplace culture. Awards like “Best Places to Work” can indicate a positive and employee-focused culture.
• Response to crisis or challenges: Observe how the company has handled any past crises or challenges. Their response can provide insights into their values and how they treat their employees during difficult times.

Look out for warning signs in job interviews

Whether you’re catching up in person or online, take note if these red flags arise as you ask interview questions for culture fit:

• Lack of transparency: You’re not just there to talk about your resume. If the interviewer avoids talking about the company’s culture, work environment, or employee satisfaction, it could be a sign of a company that is not open and transparent with its employees.
• High stress or tension: If the interview process feels overly stressful or tense, it might indicate a high-pressure work environment.
• Inconsistent information: If different interviewers provide conflicting information about the company’s values, goals, or work expectations, it might indicate a lack of cultural alignment within the organisation.
• No mention of employee growth or development: If the company doesn’t emphasise opportunities for professional growth, training, or career advancement, it could signify a lack of investment in employees’ development and wellbeing.
• General vibes: There may be absolutely nothing wrong on paper with the interview – they may have been open, engaged and informative when answering interview questions for culture fit. But if you feel a general sense of unease or disinterest in the position, it may not be the right opportunity for you.

Interview questions for culture fit to ask hiring managers

You don’t have to rely on a job description, website and subtle cues from the interviewer to decide if it will be a good culture fit for you. During the interview, be proactive to find out information and set your expectations for culture.

You can ask interview questions for culture fit like:

• How would you describe the company’s culture? 
• What are the company’s core values, and how do they influence day-to-day operations?
• How does the company foster collaboration and teamwork among employees? 
• Can you share an example of how the company recognises and rewards employee contributions? 
• What opportunities does the company provide for professional development and career growth? 
• How does the company promote work-life balance for its employees? 
• How does the company support diversity and inclusion in the workplace? 
• What is the leadership style within the organisation, and how does it impact the company culture? 
• How does the company handle and adapt to change and challenges? 
• Can you provide insight into the company’s approach to employee feedback and suggestions for improvement? 
• What is the typical communication style within the company, and how do employees stay informed about company updates and decisions? 
• How does the company ensure that employees feel valued and appreciated for their contributions? 
• What is the company’s stance on work flexibility, remote work, and accommodating personal needs of employees? 
• How does the company foster a positive and inclusive work environment? 
• Can you share some success stories of employees who have thrived within the company’s culture?

Ask a couple of these interview questions for culture fit during the meeting to understand the company’s culture and show you care about finding the right fit. It shows the hiring manager that you genuinely value the work environment and how well it aligns with your values.

Find your dream job with SmartMatch

Want to find that perfect culture fit in your next role? Employment Hero Jobs lets you create a candidate profile that uses AI to match you with companies where you’d be a great fit. You can search thousands of roles from companies across the globe and talk with hiring managers 1:1. To create your very own Candidate profile, head here: Create my profile

Disclaimer:

The information in this article is current as at August 2023, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero) . The views expressed in this article are general information provided in good faith to assist job seekers in the current market, and should not be relied on as professional advice. Some Information is based on data supplied by third parties and whilst such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any important career decisions or solely relying on the information in this article.

On October 30, 2024, the Labor government released its first budget since coming to power. And as expected, employers are expected to adopt many changes; In this blog we outline the key points that will impact businesses.

Any changes in legislation are confusing and often complicated, which can cause anxiety among human resources professionals and small business owners. In an effort to demystify the budget and ease some of your concerns, we’ve broken it down.

Some important changes we will look at include increases to the National Minimum Wage and National Insurance. While these changes seem scary, the blow will be softened for some employers with an increase in the employment allowance available to small businesses.

Any changes in legislation are confusing and often complicated, which can cause anxiety among human resources professionals and small business owners. In an effort to demystify the budget and ease some of your concerns, we’ve broken it down.

Keep reading for a concise overview of the 2024 fall budget.

National minimum wage and national insurance contributions to increase

Alongside the budgetary provisions, the The government has announced annual increases in the national minimum wage. This will come into force on April 1, 2025, so you still have time to prepare. The new minimum wage requirements are:

• 21 years and over – the minimum wage will increase from £11.44 to £12.21 per hour
• 18 to 20 – the minimum wage will increase from £8.60 to £10 an hour
• 16 to 17 years old and apprentices – the minimum wage will increase from £6.40 to £7.55 per hour

These increases bring the rates for under-21s and over-21s closer together and are a step towards the government’s plans to introduce a single rate for all adult workers.

Housing compensation (the amount of accommodation provided by an employer that can be taken into account when calculating the minimum wage) will also increase from £9.99 to £10.66 per day.

The government also announced that there would be a 1.2% increase in national insurance paid by employers. This means that it will increase from 13.8% to 15% on April 1, 2025.

The threshold at which employers start paying National Insurance on a worker’s earnings will also rise from £9,100 to £5,000 a year.

Employment allowance will increase

To soften the blow from rising national insurance contributions, the government announced that the employment allowance for small businesses will be increased from £5,000 to £10,500. The allowance allows employers to reduce their Social Security contributions up to the amount of the allowance, over the financial year.

The Chancellor explained that this would mean 865,000 employers would pay no national insurance next year (because the £10,500 allowance applied to their national insurance obligations would reduce their contributions to zero), while more than one million would pay the same amount or less. than they did before.

End of freezing of personal tax thresholds

The government has announced that there will be no extension of the current freeze on income tax and national insurance thresholds, and that the relevant thresholds will increase in line with inflation from financial year 2028-2029.

Retirements

Pensions will also be affected by the autumn budget. Basic and new state pensions will be increased by 4.1% in the 2025-26 financial year, in line with income growth.

Increase in carers’ allowance

The Chancellor also announced there would be an increase in the amount carers can earn while receiving the Government’s £81.90-a-week Carer’s Allowance.

This increase will mean that a carer will be able to work the equivalent of 16 hours per week at the National Living Wage and will therefore be able to earn more than £10,000 per year and still be eligible for the benefit. This is good news for employees with family responsibilities, but also for employers, because it gives caregivers more incentive to keep their jobs.

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