With only 25 per cent of bosses claiming to know what is required of them when it comes to employment law, Citrus HR is of the belief that SMEs are open to the risk of incurring fines and penalties.For example, 30 per cent of employers don’t know the current minimum wage, which could lead to a fine as high as £20,000. Some 18 per cent of smaller business owners also don’t know which countries are and aren’t in the EU, meaning that it becomes harder to properly check that new workers have the right to work in Britain. According to the report, calculating holiday entitlement for staff on casual hours contracts was cited as a “particularly cumbersome process”. It explained that SMEs needed to look back at the hours each member of staff worked, including any commission they earned over the last 12 weeks, in order to calculate employee holiday entitlement. A large part of the problem, the company claimed, was that employment law changes frequently as a result of new laws passed, and of new cases concluded by British courts. Some 75 per cent of SMEs surveyed said that keeping up with legislation was a drain on time. Yet if business owners don’t keep up with changes, firms could risk breaking the law without knowing it, Citrus HR stressed. Read more about law:
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