The key story dominating the news has been the election result. But there has been other important news relating to an appeal about the ruling on including commission in holiday pay.
Also this week, we look at what the election could mean for small businesses looking to take on an apprentice.
Top news stories
General Election 2015: Conservatives win overwhelming support for small businesses
A Sage survey found that 60% of small business owners said the Tories' manifesto best supports the needs of small and medium-sized enterprises. See our full election round-up.
British Gas to appeal holiday pay judgment
Law firm Eversheds has announced that it has lodged an appeal on behalf of British Gas against the employment tribunal decision which deals with the inclusion of commission in holiday pay.
EU unveils plans to set up digital single market for online firms
European commission vice-president Andrus Ansip says EU-wide GDP could be increased by £300 billion a year if a harmonised market is established.
Record number of businesses started since the beginning of the year
A survey of key industries showed the net number of extra companies in Britain (companies opened minus the number closed) was 31,294 in the first three months of the year.
Crowdfunding has three years of dramatic growth
The industry has posted, on aggregate, compound annual growth of more than 100 per cent over the past three years.
Key dates for your diary
No significant dates this week
Taking on an apprentice
One of the key focuses in the manifestos from all the political parties was apprenticeships. In particular, the Conservatives promised to “create 3 million new apprenticeships, so young people acquire the skills to succeed.”
With the commitment to increase the number of apprenticeships, we look at what this means for small businesses.
The benefits of taking on an apprentice
The Government has certainly been trying to encourage businesses to take on apprenticeships, with a number of incentives:
- In the Autumn Statement, the chancellor exempted employers from national insurance contributions when they hire apprentices under 25.
- Grants of £1,500 are available for businesses with less than 50 employees who take on an apprentice aged 16 to 24. You can claim this for up to 5 apprentices.
- Businesses can also apply for funding to cover the costs of the apprentice’s qualification if the business is providing their formal study as well as being their employer.
This offers a great opportunity for smaller businesses to support a young person into work and benefit from the lower costs of employing someone. 77% of small businesses using apprenticeships say they are a cost-effective way of recruiting new staff, addressing skills shortages and improving productivity.
And there’s definitely a demand. Figures from the National Apprenticeship Service showed that there were 12 applications for each apprenticeship.
What businesses need to provide
Of course, there are certain requirements that businesses must meet. These include:
- Paying at least minimum wage
- Employing the apprentice for at least 16 hours per week, although it’s normally expected that they will work 30 hours or more
- Ensuring the apprenticeship lasts between 1 and 4 years
- Giving the apprentice the opportunity to work with experienced employees, learn job-specific skills and study for a work-based qualification during their working week
- Offering comparable terms to other employees, including paid holidays, sick pay, benefits and support
- Signing an apprenticeship agreement which needs to include information about the length of the apprenticeship, what training will be provided, the working conditions and the qualifications they’ll be working towards
How to get started
If you’re thinking of starting an apprenticeship scheme, the Government has guidance on how to do this. If you’re based in Scotland, you can find the relevant information on the Our Skillsforce website.