CHANGES IN EMPLOYMENT RULES
Following the budget announcements on 21 March 2007 it was confirmed that the national minimum wage would increase again. Splitting into three categories, the main rate for adults aged 22 and over will rise from £5.35 per hour to £5.52 per hour and the development rate for 18-21 year olds will raise from £4.45 per hour to £4.60 per hour. The rate for 16-17 year olds will also rise from £3.30 per hour to £3.40 per hour, with the exceptions of apprentices under the age of 19 and apprentices over 19 who are exempt from these changes in their first year.
Holiday entitlement will also increase to 4.8 weeks or 24 days for every person who works a five day week from 1 October 2007 and to 5.6 weeks or 28 days if you work a five day week from 1 April 2009.
Paul Jackman, a director at Thorn Baker said, “With the combined effects of both pieces of legislation, many businesses may have to rethink their staffing arrangements and some may even choose to reduce their workforce. Few companies can afford to absorb these increased costs, and whilst it is good news for the lower paid, the increased cost pressures on employers will ultimately be passed on to whoever uses the goods and services produced.”
Monday 1st October 2007
