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Employment Update for Small Businesses
January 2020

Dear Subscriber

Happy New Year!

Last month we alluded to the proposed changes to IR35 that are scheduled for April.  However, before the election the new Government promised to review this change if elected, so I suggest you do not take any steps at the moment and we will update you in February’s or March’s newsletter if we hear more (once again with the caveat that we are not tax specialists!)

The only real employment law news this month is that the new rates for the National Minimum Wage and the National Living Wage have been confirmed.  They take effect from 1st April 2020 and the details are set out below.

You will also find details of an offer on our recommended HR system, breathe.

Please contact me if you would like to find out a bit more about any of the subjects raised in this update or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.

Peter Etherington
Tel: 01664 668164


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Peter Etherington
National Minimum and Living Wage Rate​s
New Rates Announced for April 2020
From 1st April 2020, the National Living Wage and National Minimum Wage rates will increase as follows:

  • to £8.72 per hour (from £8.21) for workers aged 25 and over
  • to £8.20 per hour (from £7.70) for workers aged 21 to 24
  • to £6.45 per hour (from from £6.15) for workers aged 18 to 20
  • to £4.55 per hour (from £4.35) for workers aged 16 and 17
  • to £4.15 per hour (from £3.90) for apprentices under 19 and those over 19 in their first year*

*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age.

The National Living Wage (the £8.72 rate that will apply to 25 year olds) is increasing by 6.2%, which is more than four times the rate of inflation.  It is likely, therefore, that such a sharp increase will prove challenging for those businesses that rely on workers at the lower end of the pay gradient (such as care, hospitality and retail).  However, a 25 year old who works 40 hours per week will now be entitled to an annual salary of just over £18,000, so the knock-on effect my be felt in other industries.

If you have some staff on lower salaries, you will need to keep watch on the hours they work and check to ensure that you are complying with the minimum wage legislation, as penalties can be very severe for getting it wrong.

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Please contact us if you would like a demo or to find out more about this system.  You can subscribe for as little as £10 per month (discounted to £5), depending on the number of employees you have.