top stories

Comments from ACCA

We welcome the decision to explore the possibility of rationalising commencement dates. There has in recent years been a marked increase in the number of new employment-related measures being imposed on businesses. While many in the small business community would argue that the most business-friendly step would be for the Government to reduce the number of new measures being introduced, we agree that the harmonisation of changes would be a positive step in the right direction.

In the following paragraphs we address the individual questions raised in the consultation document.

ACCA believes that employers would be better prepared if they knew that there was a fixed commencement date or dates when all employment changes would take effect. Employers would not then need to be constantly alert to when changes were to be introduced and would be able to plan ahead more effectively. Professional advisors too would be able to plan their provision of advice and reminders to businesses in a more systematic manner.

ACCA considers that the introduction of an annual commencement date in the Autumn would be the best option for the commencement of employment regulations. We therefore favour the first of the two options put forward in the consultation paper. The single set date should, ideally, be 1^st October, so as to build on the start date for changes to the National Minimum Wage, with which employers are by now familiar.

The adoption of a single implementation date may also serve to improve business people�s appreciation of the equity of the regulatory framework. After all, businesses are frequently required to order their affairs in accordance with centrally determined timetables (such as Self-assessment for Income Tax and quarterly VAT returns) that take no account of the short-term pressures faced by businesses.

Whatever dates are eventually decided upon, it is essential that Government Departments ensure that three months notice is given before new regulations come into effect.

ACCA recognises that a single commencement date may prove difficult to adhere to in respect of European legislation, which has to be implemented by a certain date not of the UK Government's choosing. While we believe that one common date for both domestic and European regulations (a date which has included sufficient time for effective consultation and preparation for businesses) would be ideal and practically useful to businesses, we accept that there may be an argument for providing for a second fixed implementation date as a back-up measure. In this case, we suggest that the second date should be 1^st April, so as to leave a gap of six months in between implementations.

We consider that the suggested package of measures would be beneficial in enabling businesses to be better prepared. It is, however, important to remember that many employers do not have the time to read through information packs and often address individual employment regulations on a need-to-know basis. Information should, therefore, be made available in different formats to suit the needs of different businesses. Documentation should also be clear and easy to understand. We believe employers must be informed that this information exists and that it is available through a variety of sources.

Independent research demonstrates that accountants are the primary source of advice for small businesses. ACCA will continue to take its own steps to inform its members of new regulatory requirements and to provide tools to facilitate compliance both by advisers and their clients.

A number of Government Departments, along with the DTI, are involved in policy decisions which impact on employers. ACCA, therefore, agrees with the Better Regulation Task Force (BRTF) report Employment Regulation: Striking a Balance that all relevant departments must be involved in the current initiative so that the change to a set commencement date or dates has a real impact. This involvement should also lead to a more co-ordinated approach from Government Departments when considering introducing regulations.

Back to top