Common Commencement Date regulations take effect
October 2, 2007
A range of new legislation affecting small businesses was introduced on the 1 October Common Commencement Date, including increases in statutory holiday entitlement and the national minimum wage, as well as elements of the Companies Act (2006).
Regulations introduced on 1 October included:
- An increase in statutory holiday entitlement to 24 days.
- An increase in the national minimum wage to £5.52 for employees aged 22 and above, £4.60 for employees between 18 and 21; and £3.40 for employees aged 16 and 17.
- New rules under the Companies Act, including changes to incorporation and limited liability partnerships.
"The Companies Act is one of the most complicated pieces of legislation to go through Parliament, so introducing it a step at a time is helpful to small firms," said Federation of Small Businesses spokesman Matthew Knowles. "It gives businesses an opportunity to introduce the changes without feeling swamped."
The increase in holiday entitlement means employers will only be able to include four bank holidays in their employees' annual leave entitlement; by April 2009 the right to include them will be removed altogether.
"Small businesses expressed concern about the increase in holiday entitlements, so the Government introduced some concessions in consultation with us," Knowles added. "Employers can opt to pay their staff instead of giving them the extra four holidays during the transition period to the new system."
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