Employment Law Solicitors: Information on the NMW
Mar 28 >> Categories: Saucy >> No Comments
Employment law solicitors groups exist to help make sure that employee rights are respected. Naturally, a major part of this role is raising awareness amongst employers about their obligations. This explains why employment law solicitors are so frequently seen releasing information to the media any time there is some sort of change in employment law. One pertinent, recent example was that of the Equality Act which was explained in the media. However, as well as the Equality Act, another piece of important employment legislation was issued this month. Of course, I’m referring to the National Minimum Wage being increased.
Employment law solicitors are aware that most scrupulous employers know the rates that they should be paying their employees of varying ages. But there are areas which are not so clear. For the first time the age at which an employee qualifies for the highest level of NMW has been reduced to 21 and apprentices now receive a NMW whilst they are under 19 or in their first year of training.
According to employment law solicitors there is sometimes some confusion over who is and isn’t entitled to receive the NMW. As a rule of thumb, most adults who are legally working in the UK are entitled. This is regardless of whether they are employed on a full, part-time or casual basis and this rule applies even if they have no written contract. Included in the people who are not entitled to it are those who are self-employed, those aged under school leaving age, any student on a work placement of up to one year which forms part of their HE or FE course and those people on some of the government’s employment programmes.
Employment law solicitors say that employees are often unsure whether any benefits offered as part of an employment contract count towards the NMW. Although accommodation provided to a worker by an employer does count towards the minimum wage, the amount which can be offset is limited to £32.27 each week. However, benefits such as a company car or fuel allowance, or contributions to a pension made by an employer do not count.
Workers who believe that they are entitled to receive the NMW but aren’t doing should seek advice from employment law solicitors of the Citizens’ Advice Bureau. Power to enforce NMW legislation lies with the HMRC. HMRC can serve employers with a fine, as well as obliging them to repay to workers what is owed.