Skip to main content
Practical employment law information to support your business, from Clover HR

Search

Establishing a successful recruitment process and clear written employment contracts for new employees can have a major impact on your business.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Spending review aims to steer the UK out of "economic emergency"

25 November 2020

Chancellor of the exchequer Rishi Sunak has set out his plans in a Spending Review that aims to "protect lives and livelihoods" as the pandemic continues to take its toll.

The chancellor told MPs that the UK faces an "economic emergency" and that unemployment levels are predicted to reach 2.6 million in the second quarter of 2021.

He said that by the end of 2020, the UK government will have spent £280 billion "to get our country through coronavirus" taking UK borrowing to record levels. He is allocating another £55 billion to tackle the virus next year.

A key part of the Spending Review was a commitment to spend £100 billion on infrastructure next year in a strategy designed to rebuild the UK economy - which is set to shrink by 11.23% this year because of the pandemic.

The chancellor announced a 2.2% increase in the National Living Wage, to £8.91 an hour, from April 2021; this rate will be extended to all those aged 23 and over (previously it applied to those aged 25 and over). The minimum wage will also rise by 2.2%.

For businesses, the business rates multiplier will be frozen in 2021-22, saving businesses in England £575 million over the next five years.

The government will increase day-to-day departmental spending in the public sector by £14.8 billion in cash terms next year compared to 2020/21. Other key announcements included a pay rise for NHS workers; however, pay rises will be paused for other public sector workers (aside from those earning less than £24,000 a year who will receive a £250 pay rise).

Chancellor Rishi Sunak said: "Our health emergency is not yet over, and the economic emergency has only just begun; so our immediate priority is to protect people's lives and livelihoods.

"But today's Spending Review also delivers stronger public services - paying for new hospitals, better schools and safer streets. And it delivers a once-in-a-generation investment in infrastructure. Creating jobs, growing the economy and increasing pride in the places people call home."

Some of the key announcements are:

COVID-19 support: An additional £38 billion for public services to continue to fight the pandemic this year, and a further £55 billion to respond to COVID-19 in 2021.

Public services: A £6.3 billion cash increase in NHS spending in 2021-22, compared to 2020-21; this is in addition to £3 billion of investment to support NHS recovery. A £2.2 billion uplift for the core schools' budget in 2021-22 compared to 2020-21 funding.

Local authorities: Increasing core spending power for local authorities by 4.5% per cent in cash terms, along with over £3 billion of additional COVID-19 support and an extra £254 million to tackle homelessness and rough sleeping.

Jobs: An additional £3.6 billion to build on commitments made in the Plan for Jobs, including the new 3-year £2.9 billion Restart scheme to help more than one million unemployed people find work.

Infrastructure: £100 billion of capital expenditure next year, with funding for school and hospital rebuilding, housing and transport schemes as well as new investment in cutting-edge research and clean energy sources. A new UK infrastructure bank - headquartered in the north of England - will work with the private sector to finance major new investment projects.

The British Chambers of Commerce (BCC) has welcomed the focus on investment in infrastructure. Director general Adam Marshall said: "The launch of the National Infrastructure Strategy is an important step in overcoming the longstanding infrastructure deficit. We've spent long enough discussing infrastructure projects - it's now time to focus on delivery."

However, Marshall added: "With an uncertain winter ahead, the government will need to maintain an open mind on providing further support to businesses struggling to survive."

Rain Newton-Smith, chief economist at the CBI, said: "Stark forecasts point to tough times ahead. But through his statement, the chancellor has made some bold Autumn decisions to power a Spring recovery.

"But ambition must be matched by action on the ground. The government's commitment to build, build, build must be delivered now … And there can be no let-up in the support for firms facing new COVID restrictions. Firms need help to survive, then thrive."

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.