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Rising Employment Costs Will Hamper Investment, Warns ALMR

Responding to the news that the Employment Appeal Tribunal has ruled that overtime should be a factor when calculating holiday pay, the ALMR has warned against retrospectively penalising employers and the dangers of hindering investment.

ALMR Chief Executive, Kate Nicholls said: “The licensed hospitality sector is a first class employer, providing opportunities for both temporary and permanent work. Steps such as this, which penalise employers after the fact, are unhelpful, particularly when businesses will have complied with rules and acted in good faith.

“Businesses in the licensed hospitality sector already invest considerable amounts of time and money in their staff. The ALMR’s Benchmarking survey shows payroll costs at an average of 24.2% of turnover, a sizeable increase from 17% in 1999.

“Additional costs and retrospective claims have the potential to derail investment in staff and hamstring business investment in other areas.”

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