31st March 2009, 02:11 PM
Erm....I have been a bit involved in the past in negotiating with employers to make sure that they have sufficient contingency put aside to be able to cope with sick pay, holiday pay, redundancy, maternity pay etc.
I think Peter has a valid point...employers sail pretty close to the wind if they do not put funds aside to deal with legal and potential payment contingencies. As that money can only come from projects I can see that employers have to charge to create a contingency fund and therefore increases in potential costs are to all and intents and purposes increases in real costs.
Now as for what employers do with such contingency if it is not spent is another matter (and is for example the reason why many UK company pension funds are in trouble having granted themselves 'contribution holidays' in the 1990s, but failing to see what might happen in the 2000s).
The IFA minimum on basic immediately prior to 2007-8 was something around ?13400 pa and the increase in minima wage that year was between ?8-12 pw or ?420-650 pa (depending upon IFA grade). About 3% just on basic salary I think I calculated at the time.
![[Image: 3334488270_7156e71b8b_t.jpg]](http://farm4.static.flickr.com/3405/3334488270_7156e71b8b_t.jpg)
With peace and consolation hath dismist, And calm of mind all passion spent...
I think Peter has a valid point...employers sail pretty close to the wind if they do not put funds aside to deal with legal and potential payment contingencies. As that money can only come from projects I can see that employers have to charge to create a contingency fund and therefore increases in potential costs are to all and intents and purposes increases in real costs.
Now as for what employers do with such contingency if it is not spent is another matter (and is for example the reason why many UK company pension funds are in trouble having granted themselves 'contribution holidays' in the 1990s, but failing to see what might happen in the 2000s).
The IFA minimum on basic immediately prior to 2007-8 was something around ?13400 pa and the increase in minima wage that year was between ?8-12 pw or ?420-650 pa (depending upon IFA grade). About 3% just on basic salary I think I calculated at the time.
With peace and consolation hath dismist, And calm of mind all passion spent...