Businesses need to face up to the tough decisions that are coming their way as a result of the National Living Wage.
That is the advice of Pertemps Managed Solutions which is calling on UK companies to start planning now for the implementation of the government changes to avoid the many potential pitfalls.
It is estimated that the median cost per affected employee of the National Living Wage will be close to £600 meaning companies will have many big decisions to make in terms of finding the additional cost. Pertemps, which has 55 years’ experience of working closely with businesses of all sizes across the UK, says these decisions should not be put off.
“Balanced with a need to boost efficiency, output and productivity growth, companies may be looking at shedding bonuses or overtime or perhaps not filling vacancies. Worse, they might consider cutting jobs,” explained Andy Long, Business Manager for Pertemps Managed Solutions.
“These are big decisions and should not be taken lightly. Leaving them late will only cause further problems. Businesses need to start planning today so that legal risks and implications of any actions are fully considered. Only this way will the risks be minimised.”
Pertemps Managed Solutions is the outsourced business solutions arm of the Pertemps Network Group, the UK’s largest independently owned recruitment agency, and provides workforce solutions that can either be completely outsourced or tailored to compliment existing approaches.
Andy Long had this warning to companies: “If employers decide to trim employee bonuses and other discretionary payments, they will need to be mindful of contractual issues and agree changes with those affected. Express agreement must be sought because if changes are made unilaterally, claims of constructive dismissal or unlawful deduction from wages claims could potentially follow.”
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