Employers Archives - WRLO Accountants

Employment reforms continue to stifle business hiring intentions

WRLO Accountants — Tue, 01 Apr 2025 09:46:38 +0000

The government’s employment reforms are causing employers to put their hiring plans on hold, according to the Institute of Directors (IoD). The IoD noted that there was a small increase in payrolled employees in the latest Labour market data released by the Office for National Statistics (ONS). Estimates for payrolled employees in the UK increased by 9,000 between December 2024 and January 2025, said the ONS. However, the ONS data also showed static job vacancies and increase in the unemployment rate. Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said: ‘Our data shows that half of business leaders facing higher National Insurance bills plan to reduce employment in response, and that business hiring intentions over the next year remain around lows last seen at the height of the Covid-19 pandemic. ‘The government missed an opportunity at Report Stage of the Employment Rights Bill to show that it has listened to business feedback about how to avoid the reforms damaging employment prospects. ‘The government’s Better Regulation Action Plan is a welcome shift in narrative, but such commitments will ring hollow if the principles are not first applied to its plans to increase the regulation and cost associated […]

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Employment Rights amendments do little to address employer concerns

WRLO Accountants — Sat, 08 Mar 2025 16:50:46 +0000

The government’s proposed amendments to the Employment Rights Bill will do little to alleviate employer concerns, warns the Institute of Directors (IoD). Changes to a number of proposals, including application of zero-hours contracts to agency workers and Statutory Sick Pay, have been announced. In February, the IoD set out four key changes to the Employment Rights Bill which would significantly soften the negative impact of the reforms on hiring. This included delaying protection against unfair dismissal so that they only come into effect after six months rather than on day one and increasing the planned reference period for the entitlement to guaranteed hours to 52 weeks. Alexandra Hall-Chen, Principal Policy Advisor for Employment at the IoD, said: ‘While any steps to mitigate the impact of the government’s employment reforms on businesses are welcome, the changes announced today do not address the key areas of the reforms which are of particular concern to employers. ‘Substantial further amendments to the Bill will be required if it is to avoid undermining the government’s growth mission. Our own data shows that directors’ headcount expectations have dropped to lows last seen in the depths of the Covid-19 pandemic. Urgent and substantive action from government is […]

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Employer NICs rise may have unforeseen consequences

WRLO Accountants — Fri, 08 Nov 2024 10:57:03 +0000

The extra costs of the increase in employers’ NICs could cause businesses to respond in ways the government did not intend, the Chartered Institute of Taxation (CIOT) has warned. At the Autumn Budget, Chancellor Rachel Reeves announced an increase to the rate of employer NICs by 1.2 percentage points, to 15% from 6 April 2025. The CIOT says that the increase extends the differential in the burden of tax and NICs borne by those in employment compared to those engaged as self-employed. The higher employers’ NICs goes, the greater the likelihood employers may seek ways to mitigate or absorb the burden, which could include potential alternative arrangements to taking on people as employees, adds the CIOT. Alternatives could include outsourcing or offshoring services and reducing the numbers of employees. Eleanor Meredith, Chair of CIOT’s Employment Taxes Committee, said: ‘While employers must pay employer NICs on their employees’ earnings, no employer NICs is due where someone is genuinely self-employed. ‘We are concerned that the increase in employers’ NICs could lead to an increase in ‘false self-employment’, where businesses trying to save money turn to arrangements where the worker is not directly employed by them, without necessarily appreciating the rules and risks […]

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