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?