| With the updated employment legislation now in effect and embedded across organisations, this month we thought we’d share a Q&A focused on other current issues based on questions we’ve recently received. Employers are under growing pressure to “do more” on wellbeing. From rising costs and mental health to menopause, and AI-driven change, the challenge isn’t a lack of initiatives, it’s knowing what actually matters. Below, we cover some of the most common questions we’re hearing from clients right now, focusing on what will genuinely make a difference. |
| Costs and Pay |
| Q: With fuel prices still fluctuating, should employers increase mileage rates? A: Not necessarily. Many employers use the HMRC Approved Mileage Allowance Payments, which are designed to cover fuel, maintenance, and wear and tear—not just petrol or diesel. These rates (currently 45p per mile for the first 10,000 miles) haven’t changed despite fluctuations in fuel prices. Employers can choose to pay more, but anything above HMRC rates may create a tax liability. A more balanced approach is to: * Review overall travel policies * Encourage virtual meetings where appropriate * Consider temporary allowances rather than permanent rate changes. Q: Do employers need to increase salaries because of the cost of living? A: There is no legal requirement to but doing nothing carries a retention risk. Many employers are focusing on targeted support rather than across-the-board pay rises. Others are prioritising critical roles or high performers to mitigate the risk of losing key talent. |
| Wellbeing |
| Q: Do employers need Mental Health First Aiders? A: There’s no legal requirement however they can add value but only as part of a broader strategy, not as a tick-box solution. Review your whole wellbeing offering and whether you feel your company would benefit from having MHFAs. Q: Do employers need a menopause or women’s health policy? A: There is no legal requirement, but treating it as optional is becoming increasingly risky. Issues linked to menopause are already appearing in claims around sex, age and disability discrimination, particularly where concerns are ignored or managed as performance issues. Expectations have shifted, and lack of support can impact retention, absence and engagement, especially among experienced staff. A policy helps, but the real impact comes from training managers, making practical adjustments, and creating a culture where people can speak up early. Ignored, this can quickly become both a legal and commercial problem. Q: Is flexible working now the default? A: Legally, employees have the right to request flexible working from day one, but that doesn’t mean employers have to agree to every request. What has changed is the expectation. Flexible working is now seen by many employees as standard, not a benefit. In practice, blanket refusals are much harder to justify and can create legal risk if decisions aren’t handled reasonably and consistently. Employers need clear, business-based reasons for any refusal and should be able to demonstrate they’ve genuinely considered alternatives. Handled well, flexible working can support retention, engagement and productivity. Handled poorly, it can quickly lead to grievances, disengagement, and potential claims. |
| Change, Uncertainty & the Future |
| Q: Is AI actually affecting employee wellbeing? A: Yes, mainly through uncertainty rather than direct job loss. For many employees, AI is creating anxiety around job security, changing role expectations, and the pressure to keep up with constant change. For SMEs, this can be amplified because change is often introduced quickly and informally, leaving gaps where uncertainty grows. Even when AI is used to improve efficiency, employees may worry about what it means for their role. For SMEs, key steps include: *Clearly explain why AI is being introduced and what it will change (and not change) * Reassure staff early where roles are not at risk * Involve employees where possible in testing and rollout * Provide training so people feel supported, not replaced. Handled well, AI can reduce workload and improve efficiency. Handled poorly, it can undermine trust and engagement quickly, even in small teams. |