Archive for January, 2010

Compulsory Pension Schemes for employers …

Saturday, January 23rd, 2010

Small businesses are to be given flexibility over the introduction of the government’s new compulsory workplace pension scheme.The scheme is to be known as the National Employment Savings Trust (NEST), a change from the original Personal Accounts, and is aimed at employees aged over 22, earning between £5,035 and £33,540 and who do not have an occupational pension scheme.The scheme is to commence in October 2012 when the largest businesses – those employing 120,000 staff or more – will begin enrolling workers.However, smaller firms will join the scheme on a phased basis over the next three years. Start-up businesses formed from 2012 won’t be required to implement a NEST fund until 2016. Auto-enrolment is expected to be fully introduced by 2017.Employer contributions will also be implemented on a staggered schedule. Employers will be required to contribute a minimum of 1 per cent of an employee’s gross salary to the fund as from 2012. That will rise to 2 per cent from 2016 before reaching 3 per cent in October 2017.

Clampdown promised on minimum wage evasion

Saturday, January 23rd, 2010

A new HM Revenue and Customs team has been set up to tackle the problem of employers who breach the rules on the national minimum wage. HMRC’s Dynamic Response Team will be tasked with investigating the most high profile and complicated national minimum wage cases. Particular areas to be targeted are those in which employers use migrant labour to undercut competitors by paying employees less than the minimum wage. The team, which will comprise highly-trained specialist officers, is to be backed by £70 million of government funding.