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New National Living Wage From 1 April 2016

The New National Living Wage

The Government's new National Living Wage will be introduced from 1 April 2016 for all working people aged 25 and over, and Employers will be required to pay workers in this category a minimum of £7.20 per hour.  For wokers under the age of 25, the current National Minimum Wage will continue to apply.

Current National Minimum Wage Rates per Hour

Year        25 and over       21 to 24        18 to 20        Under 18        Apprentice*       
2016   £7.20   £6.70   £5.30   £3.87   £3.30  

*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.

Employers Beware - Penalties For Non-Compliance

In circumstances where workers who do not have a fixed or habitual place of work travel each day between their homes and the premises of the first and last customers, the ECJ ruled that peripatetic workers' travel time to first and last customers of the day is "working time".  

When calculating wages for these workers Employers will need to ensure that this additional travelling time is accounted for in the overall hourly rate for workers or they could unwittingly fall foul of either the new National Living Wage or National Minimum Wage legislation, and face serious penalties.

  • With the introduction of the National Living Wage the penalty for non-payment will be 200% of the amount owed, unless the arrears are paid within 14 days.
  • The maximum fine for non-payment will be £20,000 per worker. However, employers who fail to pay will be banned from being a company director for up to 15 years.

The Department for Business, Innovation and Skills has issued a new 55-page booklet on Calculating the Minimum Wage.

How EmployEasily Legal Services Can Help Employers

Employers concerned about their current pay and/or contractual arrangements can take advantage of EmployEasily Legal Services free consultation service - contact us today to arrange your free consultation.

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