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Small firms reminded of recent employment law changes

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Following a raft of changes to UK employment law, small business owners are being urged to update their working practices and avoid potential penalties.

On April 6 important changes to the law, including increases in statutory sick pay, changes in tax rates and the end of most employers’ abilities to forcibly retire staff, were introduced by the Government.

However, the Forum of Private Businesses (FPB) this week revealed concerns that many small firms may be completely unaware of the changes – and could face prosecution as a result.

Among the key legislative changes, the FPB says business owners need to be aware of are:

An increase in statutory sick pay, taking the weekly amount employers have to pay staff on sick leave from £79.15 to £81.60.

Alterations to the way National Insurance is calculated and the rates at which it is paid – employers will need to look at this in more detail.

The effective ending of an employer’s ability to utilise the Default Retirement Age of 65 years.

The creation of an employers’ right to use positive discrimination as a tie-breaker when making decisions on recruitment and promotion.

“When you’re busy running your own business, keeping abreast of the latest tweaks to the complex regulatory system can seem like the least of your worries,” said Forum Chief Executive Phil Orford.

“However, any instances of a business failing to comply with a piece of legislation can have serious financial consequences, no matter how unintended or trivial the breach is. As a result, I would urge all business owners to familiarise themselves with changes to the law and seek professional advice if they are unsure what they need to do to comply.”


Written by Andrew Hodges

June 15, 2011 at 11:16 am

Posted in LinkedIn

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