Advice on National Minimum and Living Wage

Not long ago there was no such thing as a Minimum Wage. Now the UK’s Minimum Wage is amongst the highest in Europe.

Since introduction the National Minimum has traditionally been reviewed annually and increased each October. The rates are banded according to the age of the employees.

Recently the Government has been pressured to introduce a higher minimum known as the Living Wage. The Living Wage affects workers or employees who are aged 25 and above and with effect from 1st April 2016 the national minimum living wage will be £7.20 per hour for those employees over the age of 25. Younger employees will still be subject to the National Minimum Wage.

Calculating the National Minimum Wage can be problematic in some sectors and in particular in the care industry in relation to employees “sleeping in duties” and in the domiciliary care sector where employees can spend a considerable amount of time travelling between appointments for which they in many cases may not receive payment.

The provisions of the National Minimum Wage or Living Wage can present formidable challenges to an organisation particularly where they have been subject to central or local government funding which has been on a much reduced basis over recent years.

Detailed and comprehensive analysis of your requirements will be made, and advice given by Davies and Partners specialist employment lawyers to help you implement wage rates to ensure compliance. The penalties for non-compliance with the National Minimum Wage or the Living Wage are significant and present significant penalties for businesses and indeed individuals who are found to be in breach of these statutory provisions.  Please contact our team here.

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