Employers Planning Redundancies to Cope With Introduction of the National Living Wage

blog-publish-date

10 May 2012

blog-read-duration

  A fifth of UK bosses are planning to make employees redundant in order to accommodate the introduction of the National Living Wage (NLW), according to HR experts, Croner. The research carried out in March this year by Croner’s pay and benefits specialists also reveals that 20% will be using more self-employed workers as opposed to employing people directly. However only 10% of businesses said the legislation would affect their recruitment plans. A third of businesses replying to the survey said that the NLW will have a negative impact on their business, with many of them already seeing an increase in wage and supplier costs. Viv Copeland, Head of Reward at Croner says: “The introduction of the National Living Wage has without doubt been one of the biggest game changers in recent employment history. It is estimated that around six million workers will benefit from the new legislation which is good news for them, but we wanted to know what impact this will have on employers which is why we carried out the research. “The biggest challenge emerging from this research is how employers will fund the wage increases, especially where the costs cannot be passed on to customers. This is particularly an issue in the care sector, who admitted they would have to make redundancies in order to cope with the rise in wage costs. “On a positive note 60% of respondents said they would be reviewing their overall pay and grading structures to ensure that relative pay remains fair and differences justified.” The research features in Croner’s latest briefing: The National Living Wage Research into Strategies. The briefing also highlights practical ideas for coping with the rise, including changing pay reference periods and managing poor performance.

Free to Download Employer Resources

  • How To Guide: Helping Employees with the EU Settlement Scheme

    FREE DOWNLOAD

    How To Guide: Helping Employees with ...

    Read more
  • Sample Risk Assessment Template

    FREE DOWNLOAD

    Sample Risk Assessment Template

    Read more
  • Upcoming Employment Law Changes - 2019/20

    FREE DOWNLOAD

    Upcoming Employment Law Changes - 201...

    Read more
  • Bank Holidays: Legal Requirement or Not?

    BLOG

    Bank Holidays: Legal Requirement or N...

    Do you need to give your staff days off on bank holidays? Do you have to pay the...

    Read more
  • Fires at The Ivy, Ocado and Tesla… Is Your Business Next?

    BLOG

    Fires at The Ivy, Ocado and Tesla… Is...

    The following incidents took place at the sites of major businesses in the UK be...

    Read more
  • Manual Handling Training: What You Need to Know

    BLOG

    Manual Handling Training: What You Ne...

    The Manual Handling Operations Regulations (MHOR) 1992 defines manual handling a...

    Read more
  • Solicitors Benevolent Association

    CASE STUDY

    Solicitors Benevolent Association

    “The reason for using Croner was the high-profile track record and the credibili

    Read more
  • John Taylor Hospice

    CASE STUDY

    John Taylor Hospice

    “A large number of the queries are around employment law and rights in areas suc

    Read more
  • Motorsport Industry Association

    CASE STUDY

    Motorsport Industry Association

    “I’m so happy with the service Croner provide, I’d be hard pressed to find a fau

    Read more

Ready to focus on what you do best?

Get your free consultation and speak to an expert today.