The Coalition Government is doing just what any new government is expected to do – rubbishing the past and creating some new rules. The obvious immediate effect for employers is that there is yet more change on a number of fronts:

The economy:
The Office of Budget Responsibility has said that last weeks emergency budget will cut growth. The VAT rise will keep up inflation. Public sec tor cuts will bump unemployment. And interest rates haven’t started to be increased yet. So, at best, most employers will continue to face a tricky trading environment and will need to keep a close eye on particular pressures affecting their cus tomers – whether BTB or BTC – and their suppliers. Effective cash control and cost management remain key.

Meanwhile tax and inflation pressures on employees will put pressure on employer’s trying to avoid increases in their wage bills. If you missed our recent webinar on reward, employment costs and the new economy give us a call. We may just schedule a rerun or give you a short personal overview that could help your current planning.

When do we hear about the first employer shutting up shop in the South-East to take advantage on the NI reductions on start ups in the regions?

Legislation:

• Vetting and barring – the new scheme has been put on hold.
• Health and safety – David Cameron has appointed Lord Young to lead a Whitehall-wide review of health and safety law and practice. He will report to the Prime Minister in the summer.
• The Equality Act – Due for implementation from October 2010 but who knows. It seems there is a review going on but no-one seems quite sure. The Government Equality Office (GEO) has removed the implementation dates from its website suggesting that there are still decisions to be made. In the meantime it is still working towards the commencement of the Act core provisions in October 2010.
• Retirement Age – Retirement at 65 is definitely on the way out – and in fairly short order. Expect a sudden interest in the development of effective capability management processes.
• Maternity, paternity and adoption leave and flexible working generally: Expect to see the current changes implemented and a continuing expansion of employee rights.
  
• Pensions: The plans to force employers to make a minimum contribution of 3% of eligible pay towards their employees' pensions from 2012 onwards (big employers first) look like they will continue to be implemented.
• Bankers bonuses: Watch this space
• Limits on economic migration are being tightened Public sector outsourcing and terms and conditions changes will test employee relations management (and legislation) and TUPE regulations

New Employment Legislation? Other than the above, probably not a lot of set piece activity. There is a general promise to deregulate. We will have to wait and see.

Whether you have a specific question on solving a work based problem or help with a strategic review about what all this means for your organisation, give your HR Advantage Consultant a call.