The Queen's Speech on 8 May 2013 included an outline of Government plans in the following areas of employment law:
national insurance contributions
National insurance contributions
The Government is planning to introduce a National Insurance Contributions ("NIC") Bill that aims to reduce the cost of employment, stimulate growth for small businesses and encourage start-ups. The NIC Bill will introduce an “Employment Allowance” from April 2014 which means that every year the first £2,000 of NICs for all companies will be waived.
In addition, the NIC Bill will also attempt to curb NIC avoidance under an extension of the General Anti-Abuse Rule in the Finance Bill 2013, restrict the use of offshore employment payroll companies and remove the presumption of self-employment for LLP members.
The Government is also planning to introduce the Deregulation Bill to repeal any unnecessary legislation. This aims to cut red tape in order to reduce the burden on public bodies, businesses and individuals.
The Bill will remove the power afforded to Employment Tribunals under the Equality Act 2010 to make 'wider recommendations' in successful discrimination claims (eg recommend employees in the workforce undergo equal opportunities training).
The Immigration Bill will tighten up controls on illegal immigrant workers through tougher sanctions and penalties on employers who employ workers who do not have the right to work in the UK.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at May 2013. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.
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