2 weeks Ago
Workers looking for support and guidance as they face redundancy has soared by around 200 per cent, a law firm says. Clough & Willis, based in Little Lever and Bury, says that it has seen a massive rise in enquiries from workers all over the North West about settlement agreements. The firm says they believe this has mainly been driven by Chancellor Rachel Reeves’ recent increases in National Insurance and the Minimum Wage.
Clough & Willis head of employment Chris Macwilliam said: “We are speaking to companies every single day that are struggling under very real pressures not seen since the pandemic. “These latest tax rises are hugely detrimental, and it feels like they are now starting to bite as confidence amongst small business owners hits a low ebb. Chancellor Rachel Reeves delivered the budget last October (Image: PA) “Business leaders are questioning their growth prospects which is a direct result of the rise in employment costs and the economy’s continuing sluggish growth.
He added: “The reality is that employers can’t shoulder everything so redundancies , hiring freezing or increasing their prices are the only viable options to ensure stability. “This rise is demand for settlement agreements from workers is a real-world metric as they are used by employers to protect themselves against claims from employees. “In return for a specified sum of money, the employee agrees not to pursue any potential claims against their employer.
” Ms Reeves raised company national insurance contributions in a bid to fund improvements in public services. The increase , along with a rise in the minimum wage, is set to come into effect from April. In October’s budget, Ms Reeves increased the rate of employers’ NICs by 1.
2 percentage points to 15 per cent. ALSO READ: 'Highly talented specialist' joins solicitors' firm ALSO READ: Law firm retains members of scheme reflecting its 'highest standards' ALSO READ: Law firm unveils string of 'highly talented' new appointments Ms Reeves also slashed the threshold at which the tax starts being paid from £9,100 to £5,000 to raise £26billion a year. She also announced that the national living wage will increase by 6.
7 per cent for employees aged 21 or older, from £11.44 an hour to £12.21, from April.
Mr Macwilliam said: “I am worried, but I know how resilient businesses in the North West are. “I just hope this millstone doesn’t become too much to bear and the government’s growth strategy starts to finally kick in.”.
