How can SMEs offset the cost of the National Living Wage?
Publication: Real Business
A month on from this new wage being introduced and it would seem some businesses are struggling to cope with the increased cost. Some of the UK’s largest and most well-known companies have seemingly attempted to offset the 50p an hour increase against some existing benefits offered to employees. The result? Some employees are actually worse off.
If these big chains are looking to offset this cost, what hope remains for smaller businesses which may be struggling? And ultimately is it ever legal to take away employee benefits to help budget for higher wages?
Although Nick Boles MP did previously confirm that “full force” would be used if any company indicates that they are “trying to evade the spirit of the legislation in any unreasonable way”, there doesn’t appear to be any law protecting employee benefits such as free meals unless they are written into the employee’s contract.