You may have seen a lot on the news lately about companies failing to pay minimum wage. The government is taking this very seriously, they are finding companies and fining them – with the largest fine at the moment being £800,000.
What is the current national minimum wage for the UK?
The hourly rate for the minimum wage depends on your age and whether you’re an apprentice.
Year: April 2017
25 and over: £7.50
21 to 24: £7.05
18 to 20: £5.60
Under 18: £4.05
Hundreds of companies are failing to pay minimum wage and are getting themselves into a sticky situation! See GOV.UK so you know the ins and outs of what you need to legally pay your employees.
Although the media are predominantly focusing on the retail industry being affected; it is important to note that a wide variety of industries have also been fined. In fact, currently 233 firms have just been named and shamed, you can find the list of companies online. These companies range from retail, construction, beauty, safety, education and more.
As an employer, you must ensure that you are paying your staff the minimum wage or above, however, this becomes a little more difficult to monitor when your employees are on annual salaries. Why, you ask? Well, it’s surprising how the extra hour here and there adds up. Employees’ average pay for the total hours worked mustn’t fall below the National Minimum Wage.
If you’re found to have failed to pay minimum wage you will not only receive a fine but you’ll also have to pay back your employees the money that they were entitled to. This will not only damage your profits but it will tarnish your business’ reputation.
Laws are always changing and we understand that it’s difficult to keep on top of them all. If you’re worried that you are not complying with the law then you can have a confidential chat with Andrew Wilson, Head of our Employment Law team on 03456 122 144. Make sure you’ve got yourself and your company covered.
For help with any Employment Law issues call us on 03456 122 144