Archive: 28 August 2025

Key Payroll Changes for FY 2025/26

  • National Insurance (NI) increase: as of April 2025, new HR laws have come into effect, and employer national insurance contributions (NICs) have increased to 15% on salaries above £5,000. 
  • Student loan changes: the threshold for paying back student loans for Plan 1, Plan 2, and Plan 5 has increased from April 2025 until April 2026.
  • National Living Wage (NLW) and National Minimum Wage (NMW): in April 2025, rates increased for all age groups. 
  • Spring Budget 2025: in March, the Spring Forecast announced that planned tax rises were to go ahead, and business relief rates would be reduced. 
  • Mandatory payrolling of Benefits in Kind: the government has announced that, from April 2026, employers will have to report and pay Income Tax and Class 1A NICs in real-time on the majority of BiKs.

Fully-managed vs. part-managed payroll

One of the first decisions you’ll need to make when choosing a payroll service provider is how extensive you want the support to be. Essentially, businesses can choose between either fully-managed or part-managed payroll.

Here’s a quick summary of them both:

Fully-managed payroll

Every single aspect of your payroll is outsourced to your selected provider, encompassing everything from employee BACS payments to P60s. Some providers let you assign an employee to double check pay runs before they are submitted, but clients have little involvement.

Part-managed payroll

The processes are split up, with some of your payroll processes managed in-house while others are outsourced. Usually, the more complex, time-consuming processes like end of year filing or HMRC reporting get outsourced. Simpler day-to-day tasks like submitting pay-runs are actioned in-house.

Employment Law Changes 2025

We all know the Employment Rights bill is slowing increasing and improving the rights to all employees within the UK, this might be seen as more admin for the employer but it should make managing our teams more effiicent.

Here’s a breakdown of how the Employment Rights Bill (ERB) will be implemented across the UK, based on the government’s official roadmap and recent updates2:

📅 Implementation Timeline

PhaseDateKey Measures
Royal AssentAutumn 2025Bill becomes law; limited measures (e.g. repeal of trade union restrictions) take effect two months later
  • | Phase 1 | April 2026 |
  • Statutory Sick Pay from day one
  • Simplified trade union recognition
  • Doubling protective awards for redundancy consultation failures
  • Creation of the Fair Work Agency |
  • | Phase 2 | October 2026 |
  • Stronger workplace harassment protections
  • Restrictions on fire-and-rehire practices
  • Expanded parental leave rights |
  • | Phase 3 | 2027 |
  • Day-one unfair dismissal rights
  • Protections for zero-hours workers (e.g. right to request predictable hours, compensation for cancelled shifts)
  • Flexible working rights from day one |

🛡️ Key Worker Protections

  • Zero-Hours Contracts: Employers must offer guaranteed hours based on average work over 12 weeks.
  • Fair Tips: All tips and service charges must be passed to workers without deductions.
  • Pregnancy & Parental Leave: Enhanced redundancy protections and clearer rights for returning parents.
  • Dismissal Reform: Employers must follow fair procedures from day one, even during probation.

🏢 Employer Responsibilities

  • Update contracts and HR policies to reflect new statutory rights.
  • Prepare payroll systems for SSP changes.
  • Audit zero-hours and agency worker arrangements.
  • Train managers on fair dismissal and flexible working procedures.

Would you like help preparing a checklist for your business or understanding how these changes might affect your employment contracts or how to train your managers? I am here to help.

email us today : enquiries@motionhr.co.uk

Culture

It is often questioned what is business culture? What breeds a positive culture in the working place, what causes a toxic culture. There are many factors to each segment but real culture starts at the top. If you hear a business has a negative or toxic culture, then perhaps the directors need to look within themselves to understand what the reasons could be. Culture can be better described at the vibe in the workplace.

Happiness at work drives success, a factory floor operative that is happy with produce better quality goods than an operative who feels undervalued. Creating a harmonious working environment comes from many factors, some questions you should ask

  • How are they treated by line manager?
  • Does the company focus on profit or quality?
  • Do the directors communicate with the operatives on a regular basis?
  • Are they rewarded adequately, including an overtime premium?
  • How much overtime are they working?
  • Is the shift pattern suitable?
  • What is the sites rolling 12 month turnover?
  • What is the site absenteeism percentage?
  • What are the company values?

When answering these questions you will start to see where the culture is heading.

Business culture—often referred to as company or corporate culture—is the invisible force that shapes how an organisation operates, interacts, and grows. It’s not just about perks or dress codes; it’s the shared values, beliefs, and behaviors that define the character of a company.

🧭 What Is Business Culture?

Business culture is the collective personality of a company. It includes:

  • Values and Beliefs: What the company stands for (e.g., innovation, integrity, customer focus).
  • Norms and Behaviors: How employees interact, make decisions, and solve problems.
  • Leadership Style: The tone set by leaders—whether collaborative, authoritative, or laissez-faire.
  • Communication Practices: How transparent, inclusive, and respectful internal communication is.
  • Work Environment: Physical and psychological aspects, including flexibility, safety, and wellbeing.

As Forbes puts it, company culture is “the living, breathing persona of your company,” and it’s often considered more important than strategy or operating models.

🚀 Why It Matters

A strong business culture can:

  • Boost employee engagement and morale
  • Improve productivity and innovation
  • Reduce turnover and absenteeism
  • Enhance customer satisfaction and brand reputation
  • Drive financial performance—companies with strong cultures often see significantly higher revenue growth

On the flip side, a toxic or unclear culture can lead to:

  • Disengagement
  • Poor leadership dynamics
  • High staff turnover
  • Increased stress and mental health issues

🛠️ How to Build a Positive Culture

Here are some strategies to shape and strengthen business culture:

  • Define Core Values: Make them clear, actionable, and lived—not just words on a wall.
  • Lead by Example: Leaders must embody the culture they want to see.
  • Foster Open Communication: Encourage feedback, transparency, and collaboration.
  • Invest in Wellbeing: Prioritize mental health, work-life balance, and safety.
  • Recognize and Reward: Celebrate behaviors that align with the company’s values.
  • Hire for Cultural Fit: Look beyond skills to ensure alignment with company ethos.

Would you like to explore examples of companies with strong cultures or dive into how to assess and improve your own workplace culture?