Peter Jones of Swindon based HR Dept is urging the town’s SMEs to have a good look at big employment law changes coming into effect this year.
The big change coming in for 2016 is the introduction of the National Living Wage.
Peter Jones from the HR Dept Swindon expands: “The National Living Wage comes into play in April 2016 starting at a minimum of £7.20 for over 25s. It will rise progressively to £9 by 2020. For businesses who currently employ people below this rate it has the potential to have quite an impact. So we would advise preparing for it as soon as possible – if you haven’t already done so.”
There are various things to consider, including the age profile of your workforce (under 25s are exempt from Living Wage rules), the impact up the pay bands and the knock-on effects on other parts of remuneration packages. There could be complexities at every turn.
One of the other changes which the town’s larger companies will have dealt with already but will start to impact many SMEs this year is the continuing roll-out of auto-enrolment, the new workplace pension scheme.
“Auto-enrolment” Peter advises “has been introduced in stages, based upon the size of a company’s payroll scheme, and is affecting SMEs now. Each company is issued with a staging date for when their auto-enrolment obligations come into force. If you don’t know yours, you can find it on The Pensions Regulator Website. Knowing this should be a priority, as you will need to make preparations before this date including selecting a pension scheme, adjusting payroll and communicating with employees.”
Companies missing their staging date and failing to comply with auto-enrolment rules could find themselves hit with a number of repercussions ranging from warnings through to fines and penalties.
The HR Dept is on hand to help advise Swindon businesses navigate the complex world of employment law and can offer guidance and solutions to companies dealing with both the National Living Wage and auto-enrolment.
The Swindon HR Dept team can be contacted on 01793 683 398 or via email peter.jones@hrdept.co.uk.
