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Eversheds comment: Budget 2016 - new NIC charge could see workforce restructurings brought forward

  • United Kingdom

    16-03-2016

    Commenting on changes to termination payments announced in today’s Budget, Simon Rice-Birchall, partner at Eversheds, said:

    "One of the side effects of the decision to make termination payments of over £30,000 subject to National Insurance contributions is likely to be a reduction in the amounts employers are willing to offer to staff in redundancy situations as they look for ways to absorb additional costs. In addition, as we get closer to the 2018 implementation date, some employers who are planning to restructure their workforce are likely to look to push their plans forward sooner than might otherwise have been the case, so as to avoid the NIC charge."

     

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