Are you compliant with the national minimum wage and living wage?
This months blog from HETAS Insurance Services
In 2019 the Government made changes to the national minimum wage (NMW) and the national living wage (NLW) in the United Kingdom, effective from 1 April. All employees over school leaving age are entitled to the minimum wage from their employer, including part-time workers, agency staff and casual labourers. The national living wage is applicable to those employees aged 25 or over.
The workers age will impact the hourly rate that they are entitled to, and the regulations also apply to employees of apprentices. So what is the NMW for each age group and how has it changed this year?
- 25 and over ‒ £8.21 compared to £7.83 in 2018.
- 21 to 24 ‒ £7.70 compared to £7.38 in 2018.
- 18 to 20 ‒ £6.15 compared to £5.90 in 2018.
- Under 18 ‒ £4.35 compared to £4.20 in 2018.
- Apprentices ‒ £3.90 compared to £3.70 in 2018.*
*The NMW for apprentices may differ depending on their age and work hours. It is therefore important to do your research if you employ apprentices.
The potential consequences
If an employee believes they are not being paid in line with regulation, they are within their rights to raise their concerns and complain to HM Revenue & Customs (HMRC). If the HMRC finds that an employer has not been paying NMW they may issue a notice of arrears and a penalty. If a case were to be taken to court, the maximum fine for non-payment is £20,000 per worker.
It is therefore vitally important that you understand your responsibilities as an employer and ensure your employees are correctly reimbursed for their work. To find out more visit www.gov.uk
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HETAS Limited is an Introducer Appointed Representative of Jelf Insurance Brokers.
HETAS Insurance Services is a trading name of Jelf Insurance Brokers Ltd which is authorised and regulated by the Financial Conduct Authority (FCA). Not all products and services offered are regulated by the FCA. Registered in England and Wales number 0837227. Registered Office: Hillside Court, Bowling Hill, Chipping Sodbury, BS37 6JX.
 ACAS – National Minimum Wage Entitlement https://beta.acas.org.uk/national-minimum-wage-entitlement/if-an-employer-does-not-pay-minimum-wage