John Harding, tax partner at PwC, said:
“Today's announcement should be welcomed by employees and employers alike. It will enable companies to continue paying employees a regular salary over the course of a year without risking a breach in those ‘long’ months where there are simply more working days than normal. Some businesses would not have been fined and named and shamed as ‘rogue employers’ had these changes been in place already.
“These are fundamental changes that we estimate will impact around one third of employees. Employers must understand what this change means for them and at least a proportion of their workers. Businesses need to immediately consider both the opportunities and challenges these changes present from both a pay and reward perspective and their more general operations.”
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