Minimum Wage Increase
Employment law specialists mhl support are urging bosses to take the time to thoroughly familiarise themselves with the national minimum wage legislation and employee rights ahead of a massive government drive to enforce them.
mhl, part of the Bibby Line Group, provides employment law, health and safety and Environmental Management expertise to UK businesses, and is concerned that the launch of the Government's new Fair Employment Board spells disaster for companies that don’t stay abreast of changes in legislation.
Marc Schroder, CEO, said that mhl’s sister company Bibby Financial Services, had just conducted a survey that proved there was a lack of awareness among small businesses about national minimum wage levels, and the potential cost implications associated with implementing them.
"The national minimum wage will increase on October 1st, yet almost a third of small business owners in the UK are unaware of that.
"The Fair Employment Board has been specifically established to raise awareness of employment rights, advise on enforcing them and to safeguard workers' rights when it comes to issues such as minimum wage and health and safety – so these figures are evidence that companies are leaving themselves wide open to prosecution and financial loss," he said.
"The Government is introducing tougher penalties on firms who fail to comply, and at a time when the country is suffering an economic decline and businesses are tightening their belts, wage rises are something that could spell the end for many – but not nearly as surely as a severe financial penalty would.
"With every change in employment legislation, mhl takes on more companies as employers realise that some investment is necessary to stay on top of the red tape and out of Employment Tribunals, without doubt out-sourcing Employment Law Management is far more cost effective for businesses than trying to comply using internal resource who may not be adequately qualified to understand the potential exposures," said Mr Schroder.
"Regardless though of whether companies choose to turn to a provider such as ourselves, or attempt to cope using internal resources, it is critical that time is spent now to ensure their business is compliant, before it is too late" he added
