On Thursday May 7th – The UK General Election was held. What changes came in to place and what does this mean for recruitment?

Getting People Back in to Work

David Cameron will be tackling low pay, this is a priority. The roll out of Universal Credit (Universal Credit is replacing Job Seeks Allowance. It is a single monthly payment for people in or out of work which merges the benefits and tax credits that people may be entitled to now) is continuing and the National Minimum Wage will increase to £8.00 by 2020.

Income Tax

There are plans to raise the personal tax threshold to £12,500. This would mean employees on National Minimum Wage that are working less than 30 hours a week will pay no income tax at all. Also there will be no rises in Income Tax rates, Value Added Tax or National Insurance for the next 5 years.

Apprenticeships

Apprenticeships are still being driven and the government plan is to create over 3 million more apprenticeships by 2020. This is part of the bigger drive to get 2 million more people in to work by 2020.

A new jobs bill is likely to abolish the National Insurance Contributions for apprentices under 25 years old and replace the Jobseekers Allowance for 18-21 year olds with a Youth Allowance that will be limited to a 6 month time period.

Would you like to be on a zero hours contract?…No?…Neither would we!

With Orbital Recruitment you are guaranteed hours. A lot of our vacancies are long term with a real possibility of gaining a full time position.

We don’t use zero hours contracts and Orbital Recruitment’s Helen Younger explains: “The election has been dominated by the topic of zero hours contracts. Here at Orbital we understand that in today’s economic climate people need as much job security as possible and should be entitled to employment benefits. We therefore offer no zero hours contracts and actually offer ones with a guarantee of hours. We believe this makes for a happier and more stable workforce which ultimately benefits our workers, clients and ourselves.” 

What the Government changes mean for zero hours contracts?

Zero hours contracts offer no guarantee of hours. Employers can offer hours when they like, often with not much notice for the employee with many companies not offering sufficient hours to their staff. Their pay depends on how many hours they work which can often stop people on these contracts from qualifying for a mortgage.

Employees can often miss out on company benefits, for example sick pay but should be given holiday pay by law.

The benefits for companies that use them are that they are flexible to meet business needs during the seasons when tourism, for example, may be higher. Employers also promote that their staff like the flexibility of these contracts.

The Government changes for zero hours currently include banning the exclusivity clauses in the contracts, which stops employees holding more than one job.

By Helen Younger

Orbital Recruitment are a supplier of personnel for both temporary and permanent vacancies to companies throughout the UK and are a specialist in delivering bespoke recruitment solutions tailored to companies needs. Find out more about the recruitment services we offer.