New London Living Wage and Employment Laws on Recruitment

How the New London Living Wage and Employment Laws Could Impact Recruitment in 2024

With the recent increase in the London Living Wage and updates to employment laws, the recruitment landscape in London is changing. These changes are especially relevant for employers and job seekers across the capital, with implications for hiring, workforce management, and employee well-being. At Val Wade Recruitment, we’re committed to helping businesses and candidates navigate this new landscape effectively. Here’s a closer look at what the new London Living Wage and employment law updates mean for recruitment in 2024.

London Living Wage: A Boost for Workers, New Considerations for Employers

The London Living Wage has been raised from £13.15 per hour to  £13.85 per hour , reflecting the higher costs of living in the capital compared to the national minimum wage. This increase is aimed at providing workers with a fair wage to cover their basic needs in London, but it also brings a number of challenges and opportunities for employers. Val Wade Recruitment have been a London Living Wage Employer for nearly 10 years and are a committed advocate of ensuring all of our candidates and employee wages are aligned to the  living costs which are much higher in London than in the rest of the UK.  The Living Wage rates for 2024-25 were announced on the 23rd October. Employers will then have 6 months to implement them by May1st 2025.

How This Could Impact Recruitment

1. Attracting Talent: For businesses paying above the minimum wage, offering the London Living Wage can make them more competitive in attracting skilled quality candidates, particularly across sectors like retail, hospitality, and customer service, where wages are traditionally lower. By aligning with the Living Wage Foundation’s guidelines, employers demonstrate their commitment to fair pay, which can enhance their brand reputation and attract top talent.
2. Retaining Staff: Fair wages are a key factor in employee retention. With the cost of living continuing to rise, paying the London Living Wage shows employees that their well-being is valued. This can lead to increased loyalty and lower turnover rates, reducing the costs and challenges associated with frequent recruitment.
3. Budget Planning for Employers: For some businesses/organisations, particularly SMEs and charities with tight budgets, the increase in wages could present challenges. Budget planning and efficient staffing strategies will be essential to ensure that companies can maintain profitability while meeting wage expectations.

New Employment Laws: Strengthening Compliance and Worker Protections

The government has introduced new employment laws aimed at improving worker rights and workplace transparency. From increased protections for flexible working to updated rules around contracts and paid leave, these regulations aim to create fairer and more inclusive workplaces. Here’s what the changes mean for recruitment:

Key Employment Law Changes

1. Flexible Working as a Day-One Right: Under the new laws, employees now have the right to request flexible working arrangements from their first day. This is a significant change, as previously, employees needed to wait six months before making a request. Flexible work is increasingly in demand, with many candidates preferring remote or hybrid options. Companies that are open to flexibility will likely have a recruiting edge, particularly in sectors where remote work is feasible.
2. Increased Transparency in Contracts: The new rules require greater transparency in employment contracts, particularly regarding hours, pay, and benefits. Employers must clearly outline contract terms to ensure candidates are fully informed about their roles. This transparency is beneficial in recruitment, as it builds trust between employers and candidates from the start, reducing misunderstandings and enhancing company reputation.
3. Enhanced Family Leave Policies: Updates to family leave policies, such as expanded parental leave and carers’ rights, mean that employers must plan for more flexible leave arrangements. These updates reflect a growing focus on work-life balance, and companies that offer supportive family policies can make a strong case when recruiting.
4. Stricter Compliance on Zero-Hour Contracts: The new laws also include stricter requirements for zero-hour contracts, particularly regarding predictability of hours and pay. These changes are aimed at providing greater job security for casual and freelance workers. For employers relying on flexible, on-demand staffing, this may require adjustments to staffing models and careful planning.

How Val Wade Recruitment Supports Employers and Job Seekers

At Val Wade Recruitment, we understand that navigating these changes can be challenging for businesses and candidates alike. Here’s how we can support you:

• Tailored Staffing Solutions: For employers, we offer expert guidance on structuring wages and benefits to remain competitive and compliant with the new London Living Wage and employment laws. We help businesses build cost-effective strategies that balance profitability with fair compensation.
• Attracting Top Talent with Competitive Offers: Our team stays on top of industry trends to ensure we attract high quality candidates who value fair pay and flexibility. We can help you build a recruitment strategy that appeals to London’s top talent, emphasising a commitment to fair pay and a supportive work environment.
• Ensuring Compliance: Navigating the evolving legal landscape can be overwhelming, especially for smaller businesses. We provide guidance on compliance with the latest employment laws, helping you create clear and compliant contracts, flexible working arrangements, and transparent hiring processes that meet legal standards. Being a member of the REC (https://www.rec.uk.com/) our trade body allows us access to up-to-date regulatory information which we pass on to all of our clients when legislation changes to the recruitment sector. 
• Supporting Candidates in Their Job Search: For candidates, we offer support to find roles that meet their expectations around fair pay, flexibility, and transparency. Our team matches job seekers with employers who are aligned with their career goals and personal values. We provide our candidates CV writing skills training and interview techniques, ensuring our candidates have the best chance in a successful outcome.

Embracing the Future of Work in 2024

The recent changes to the London Living Wage and employment laws reflect a broader shift towards fairness, transparency, and work-life balance in the workplace. At Val Wade Recruitment, we believe that these updates, while challenging, offer exciting opportunities for businesses and candidates alike.

By staying informed and adaptable, employers can attract and retain the best talent in London’s competitive market. For job seekers, these changes bring new assurances of fair pay and workplace flexibility. If you’re ready to embrace this evolving landscape, let Val Wade Recruitment help you navigate these changes and build a workforce that’s prepared for the future.

Contact us today to discuss how we can support your recruitment needs in this dynamic environment.