National Living Wage came into effect 1st April 2016, make sure you are compliant!

2016-04-04 Jennifer Renney posted:

The Government's National Living Wage came into effect on 1st April 2016 for all working people aged 25 and over

The National Living Wage is set at £7.20 per hour and the government aims to raise it to over £9.00 by 2020. National Living Wage (NLW) should not be confused with the National Minimum Wage which still applies to workers aged below 25 and this applies to both part-time and full-time workers.

Who will be entitled to the National Living Wage?

Generally all those who are covered by the National Minimum Wage, and are 25 years old and over, will be covered by the National Living Wage these include:

  • employees
  • most workers and agency workers
  • casual labourers
  • agricultural workers
  • apprentices who are aged 25 and over and who have completed their first year of apprenticeship.

National Minimum Wage rates 2015/16

AgeMinimum rate
Over 25 (NLW)£7.20 an hour
21-25£6.70
18-20£5.30
16-17£3.87
Apprentices£3.30

Source: DWP

What penalties will employers face if they don't pay the NLW?

It is a criminal offence for employers to pay workers less than the National Living Wage or National Minimum Wage or to falsify payment records. A new enforcement team has been set up at HM Revenue and Customs to pursue criminal prosecutions, and fines of up to £20,000 per worker can be imposed on the employer.

The employee is likely to be awarded twice the amount owed in underpaid wages, in addition to which Company directors can face disqualification for up to 15 years.

If you have any questions about how this might impact on you or your business, please feel free to contact us at 01225 632240 or email us at info@renneyandco.com.

Share this post

Sign Up to Our Newsletter

Share this post

Twitter

Directors, take note and consider your conduct carefully - you may not be immune from personal liability for unfairtwitter.com/i/web/status/1…4M

Twitter

Latest blog post is up: Employer references - are you aware of the legal requirements regarding work references?twitter.com/i/web/status/1…CT

Twitter

Employment tribunals have increased 30% since last year, which means delays for both employees and employers. If yotwitter.com/i/web/status/1…89

Testimonial

Thanks for all your advice and help in getting my settlement agreement processed quickly.

Client on 2nd April 2015

Testimonial

I passed on a copy of your letter to my boss (and) had the desired outcome. (My boss) made my life pretty unpleasant … but it was well worth pursuing. Many thanks for your help – it turned out to be the best money I could spend!

Client on 15th January 2015