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UK on-trade needs ‘flexible labour’ model
By Kristiane SherryThe owner of a UK recruitment agency for the food, drink and hospitality sector says businesses need more flexibility to “limit the impact” of the new compulsory National Living Wage (NLW), set to be introduced next year.
The owner of a specialist UK food, drink and hospitality recruiter has said businesses should embrace flexibility in light of new National Living Wage legislationGlasgow-based EasyRecruit UK’s Derek Ferrol said that the impact of the incoming NLW could “take us back to the dark days of the 1970s and 80s”.
The NLW is set to be introduced in the UK in 2016. It will be paid to workers aged over 25 and is initially set at £7.20 per hour. It is expected to exceed £9 per hour by 2020.
Six million people will see their wages boosted, but The Office for Budget Responsibility has predicted that 60,000 people could lose their jobs as a result of the legislation.
“The foundation of any sustainable business, quiet simply, requires a flexible cost base. One that is not fixed, rigid or beyond the control of the business,” said Ferrol.
“The sectors which will be most affected by this legislative change are food and drink, hospitality and cleaning. In order to limit the impact of the National Living Wage, they need to consider moving to a ‘flexible labour’ model.
“Not only will greater flexibility make an organisation more resilient and progressive in challenging times, but it will also make you a better employer.”
From April 2016, workers over 25, who are currently on the national minimum wage, will get 70p an hour more than the current rate.
By 2020, someone aged over 25, working 35 hours a week and previously earning a minimum wage of £6.70, will see their wages go up by around £4,000 a year.