Employment legislation 2006

Jonathan Hollow, portal editor at businesslink.gov.uk, looks at hot topics facing small businesses in 2006.

Recent findings from discussions with Business Link advisors, analysts, who deal with small and medium sized businesses on a daily basis, has shown that HR legislation will be a hot issue in 2006. The findings revealed that one of the biggest issues will be getting to grips with forthcoming employment legislation that is due to come into effect during 2006.

While legislation has been identified as one of the most important issues that small and medium businesses need to be aware of, there are other hot topics that have been identified for 2006 including:

· Insurance and financial services to be the strongest growth sector for start-ups in 2006
· Broadband installation will be the most relevant IT issue to small businesses over the next 12 months
· Raising finance for businesses is anticipated to be more difficult in 2006
· More people are expected to consider starting their own business, in part encouraged by business programmes on television, such as Dragon’s Den

· Age discrimination: introduction of legislation in October 2006 will see the government outlawing age discrimination in employment in the UK. Measures include the employer requiring justifying having a mandatory retirement age below 65 and put in place an obligation for employers to consider a request to work beyond retirement age.

· Paternity & Maternity: Extension of maternity leave and pay from 6 to 9 months as well as changes that will see a transfer an element of maternity leave from the mother to the father will now mean that two employers will be able have to make arrangements to cover for temporary leave.

· National minimum wage: From 1st October 2006, the minimum wage will increase from £5.05 to £5.30 for those aged over 21.

www.businesslink.gov.uk