national minimum wage

Government Names And Shames Underpaying Businesses

Government Names And Shames Underpaying Businesses

The government has named and shamed underpaying businesses by publishing a list of all firms who fail to pay workers the National Minimum Wage (NMW) and National Living Wage (NLW). The Department for Business, Energy and Industrial Strategy (BEIS) has released a list of 359 businesses who underpaid 15,513 workers a total of £994,685. Offenders include kebab shops, nurseries, retail stores, football clubs and tradesmen with small businesses making up the bulk of the list. As well as recovering arrears for some of the UK’s lowest paid workers, HMRC issued penalties worth around £800,000. By law, adult workers aged 22 and over, except “accredited” trainees and some excluded groups, must be paid a NMW of at least £6.95 an hour – though this will increase from 1 April 2017. For the first time, ... »

UK National Minimum Wage Increases Today

UK National Minimum Wage Increases Today

The National Minimum Wage has increased to £6.70 an hour today (Oct 1) for all employees aged 22 and over – a 20 pence increase on the previous hourly rate of £6.50. Business employing apprentices and workers aged between 16 to 17 must also increase wages to a minimum of £3.30 and £3.87 an hour respectively. The news will be welcomed by workers, with an estimated 1.4 million employees set to experience a wage increase, however small and businesses have conveyed concerns that the higher rate will negatively affect cashflow. For more information on the National Minimum Wage and what it means for your small business, check out our guide here. »

Employment Law: The Basics

Employment Law: The Basics

If you run a business with staff, you need to know your employment law – it’s that simple. Keeping in touch with developments and developing smart policies in line with the law may seem tedious, but failing to do so can be disastrous for your business. In this article, you will find a helpful run-down of the basics of employment law in all the areas you will run into it as a business, and what to do when things go wrong. What should I be aware of when looking for staff? At the interview and selection stage, you must take care to avoid letting prejudice affect your decisions. Discrimination is illegal on the grounds of age, disability, gender reassignment, marriage and civil partnership (marital status), pregnancy and maternity, race, religion or belief, sex and sexual orientation. When int... »

National Minimum Wage

National Minimum Wage

The National Minimum Wage sets out the hourly rates almost all UK workers are entitled to by law and every employer, no matter how small, must pay. Designed to provide employees with decent minimum standards and fairness in the workplace, the National Minimum Wage helps small businesses compete on the basis of the quality of goods and services provided rather than low prices based on low rates of pay. The law was first introduced on 1 April 1999 by the National Minimum Wage Act 1998 and the National Minimum Wage Regulations 1999. Set by government, the headline figure is based on guidance provided by the independent body the Low Pay Commission. What is the National Minimum Wage? The Minimum Wage is a legal right which covers almost all workers above compulsory school leaving age. There are... »

National Minimum Wage Set to Increase by 20p to £6.70 an Hour

National Minimum Wage Set to Increase by 20p to £6.70 an Hour

The national minimum wage for adult workers is set to increase by 20p to £6.70 an hour from October, the government has announced in the biggest real-terms rise in seven years. More than 1.4 million workers will find themselves better off with the changes as the hourly rate for younger workers and apprentices also increases. The statutory minimum for 18-20-year-olds will increase by 3%, from £5.13 to £5.30, for 16 and 17-year-olds by 2% to £3.87, and for apprentices by 20% to £3.30 an hour. The government has significantly upped the Low Pay Commission’s proposed 7p an hour increase for apprentices, instead opting for 57p an hour, which applies to apprentices aged 16 to 18 and those aged 19 or over in their first year. All other apprentices are entitled to the national minimum wage. It had ... »

National Minimum Wage: Historical Rates

National Minimum Wage: Historical Rates

The National Minimum Wage was introduced in 1999 by the then Labour government as the absolute minimum hourly rate that workers could be paid, dependent on age. Initially there was an adult rate of minimum wage, for workers aged 22 or over, and a “developmental rate” for 18-21 year olds. By 2004 another minimum wage rate band was introduced for 16-17 year olds and then in October 2010 the apprentice rate was brought in. Additionally, in 2010, the “development rate” band was narrowed to 18-20 year olds and the adult rate expanded to cover workers aged 21 and over. The last increase in the National Minimum Wage was on the 1st October 2014 and the rate is due to increase again on the 1st of October 2015. For current rates and full details see our business advice articl... »

National Minimum Wage 2012 Rate Approved

The Government has today (Monday) accepted recommendations from the independent Low Pay Commission’s (LPC) for this year’s (2012) National Minimum Wage (NMW) rates. The following National Minimum Wage rates will come into effect from the 1st of October 2012: The adult minimum wage rate will increase by 11p to £6.19 an hour The rate for 18-20 year olds will stay at £4.98 an hour The rate for 16-17 year olds will remain at £3.68 an hour and The rate for apprentices will increase by 5 pence to £2.65 an hour. Business Secretary Vince Cable said: “I believe that the recommendations of the Low Pay Commission strike the right balance between pay and jobs, and have therefore accepted all the rate recommendations. The Low Pay Commission has done a good job ... »

Guidance Clarifies Interns’ Pay Rights

Businesses which offer work experience placements and internships can access advice on their payment obligations, following the publication of updated guidance from Business Link. The National Minimum Wage (NMW) guide clarifies when work experience staff and interns are entitled to be paid. The guidance also includes a worker checklist for employers to check who should get the NMW. Entitlement to the National Minimum Wage does not depend on the job title, but whether the arrangement the intern or work experience person has with an organisation makes them a ‘worker’ for NMW purposes. Where they are a worker they must be paid minimum wage. By law, if there is a contract of employment an intern will be classified as a worker and entitled to the National Minimum Wage. Equally, an i... »

National Minimum Wage Rise a Barrier to Recruitment

The Government’s decision to increase the national minimum wage (NMW) in October will deter small firms from taking on low-paid workers, business groups have warned. From 1 October 2011, the adult rate will increase by 15 pence to £6.08 an hour, for 18-20 year-olds by 6 pence to £4.98 and the rate for 16-17 year-olds will rise by 4 pence to £3.68 an hour. British Chambers of Commerce director general, David Frost, said that this is “the wrong increase, at the wrong time.” “Our recommendation has been to maintain the current NMW rates to allow businesses to take on staff. It’s clear from speaking to business owners that a significant number are being forced by the economic conditions to freeze wages in 2011. These changes will be a barrier to job creation, part... »

National Minimum Wage (Amendment) (No.2) Regulations 2010

The National Minimum Wage (Amendment) (No.2) Regulations 2010 came into force with effect for pay periods starting on or after 1st January 2011 and means that travelling and subsistence expenses eligible for tax relief under section 338 Income Tax (Earnings and Pensions) Act 2003 will overall not count when calculating National Minimum Wage pay. For guidance on the application of these Regulations see: National minimum wage – what counts as NMW pay, benefits in kind and accommodation The Department for Business, Innovation and Skills (BIS) and HM Revenue & Customs (HMRC) are aware that a number of travel schemes and umbrella business models are being marketed which claim to continue to provide savings for the employer and be compliant with the NMW from 1 January 2011. These inclu... »

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