Employers need to prepare for implementation of government policies, says law firm

Share this story
General Election 2015
Click on the icon to follow HRreview’s election coverage

Employers must be aware of upcoming changes to employment law following this week’s general election, says ELAS.

The employment law firm has calculated the effects that changes to the National Minimum Wage will have on UK businesses.

Enrique Garcia, lead consultant at ELAS says:

“There are many changes which could be made not only to minimum wage, but also to zero hours contracts, national insurance and maternity and paternity leave to name just a few.”

“Businesses across the UK should think about how they can budget for these potential changes should they become a reality post-election. To pay workers below the national minimum wage is a criminal offence which may result in a criminal record for both the company and the senior managers. If employing someone at minimum wage, bosses need to be aware of commonplace practices as well as any potential changes that could fall foul of the law.”

ELAS’ breakdown of the financial implications of changes to minimum wage for employees is as follows:

  Labour Conservative Liberal Democrats UKIP SNP Green Party
Minimum Wage Increase in minimum wage from £6.50 to £8.00 by 2019. Increase in minimum wage from £6.50 to £6.70, October 2015 and legislate to keep people working 30 hours on minimum wage out of income tax. Workers on minimum wage would be exempt from paying tax. No change. Instead raise income tax threshold so those earning minimum wage will no longer be taxed. Unknown. Minimum wage rates to be devolved to Scotland so that they can be increased. Increase minimum wage to £10 by 2020.
Cost to UK Businesses (hourly) £2,079,000 £277,200 No direct cost to businesses. No direct cost to businesses. Unknown. £4,851,000
Cost to UK Businesses(weekly) £71,933,400 £9,591,120 No direct cost to businesses. No direct cost to businesses. Unknown. £167,844,600
Cost to UK Businesses (yearly) £3,452,803,200 £460,373,760 No direct cost to businesses. No direct cost to businesses. Unknown. £8,056,540,800

Other changes for employers to take into consideration with the possibility of a new government include rates for national insurance and pension contributions as well as government grants and other policy pledges.

Based on these figures, who do you think deserves HR’s vote in the election this week?

Poll: The general election: which party will do the most to improve the workplace?

View Results

Help Keep HRreview Free with a Small Donation





Post Comment