Employment alert email
Tuesday 23 September 2014
In last week's alert we discussed the implications either "yes" or "no" vote in the Scottish Referendum would have on employment law. Now that the results are in and the dust has settled, we know that the implications will not be as severe as they might have been had the Union separated.
Although Scotland will continue to be subject to UK employment legislation, promises of devolution of power means that the Scottish Parliament will be given new powers over taxation, spending and welfare.
At this point, one definite change to the current system will be the introduction of a "Scottish Rate of Income Tax" in 2016. This new tax will be calculated by reducing the basic, higher and additional rates of income tax by 10 pence in the pound. The main benefit for Scottish taxpayers is that all the money raised from the Scottish Rate of Income Tax will remain in and directly benefit Scotland.
These are still early days and it is expected that the draft legislation will be drawn up by January 2015. The extent to which new legislation will impact employment law remains to be seen and we will keep you posted.