News roundup: The latest business news and how this could affect your business
13 November 2014, Blog
JBP has looked at the business news in the past couple of weeks and selected some of the top stories that could affect your business.
- Let’s start with the holiday pay ruling which shook the business community to the core: Last week, the Employment Appeal Tribunal made a historic decision on an issue that could have historic consequences for workers and employers alike. Following Judge Justice Langstaff’s ruling last Tuesday, employees now have the right to have compulsory overtime included in their holiday pay and to file backdated claims which could prove extremely costly for employers. The change in legislation originates from a European Court of Justice ruling which states that employees should not be financially worse off when they go on holiday, meaning that commission and overtime should be included in their holiday pay. Whilst this is good news for the 5 million people that work compulsory overtime in the UK and who will get what they are owed, the ruling could have catastrophic consequences for businesses if they find themselves unable to pay up backdated claims.
- One of the headlines this week is also the rise in the interest rates predicted for 2015 by the Bank of England’s Inflation Report. Some bad news for UK businesses, I initially thought, but according to a survey conducted by the Institute of Chartered Accountants in England and Wales (ICAEW), 78% of small and medium sized businesses in the UK believe the rise in rates will not harm their business as the majority are cash positive and have substantial cash cushions.
- At last, some good news as UK employment figures have seen a dramatic rise. According to the Office for National Statistics (ONS), employment rose by 112,000 in the latest quarter to reach 30.7 million, the highest since records began in 1971. This is really good news for the UK economy and businesses as this will restore confidence for investors and this means that businesses can create much needed jobs and pursue expansion plans.
Written by Account Executive, Soraya Assad