October National Minimum Wage Increase

 

According to an HM Revenue and Customs spokesperson the most common cause of non-compliance with minimum wage rates amongst employers is a misunderstanding of the latest rates.

  

 

 

New rates come into force from 1st October 2007. If you are an employer and you want to make sure you do not fall foul of the minimum wage legislation check the current and new rates at the end of this article.

 

The minimum wage has been around since 1999. Enforcing the minimum wage legislation is the job of Revenue compliance officers.  Officers can pay random visits to businesses or act on complaints and tip-offs.  They can require employers to allow access to premises and produce records.  The Revenue has the power to take employers to tribunal on behalf of that employer’s workers, and in 2005/2006 there were nine tribunal cases.  Individual workers can take employers to tribunal too, for unlawful deduction from wages. Another serious consequence of failing to pay the minimum wage can be criminal proceedings.

The BBC and Financial Times reported that in August 2007 the first criminal prosecution of an employer for breaching minimum wage rules took place.  The owner of a children’s nursery was fined £2,500 plus costs of £500 after she admitted attempting to obstruct Revenue officials carrying out their investigations. 

 

The up-shot is that if you are an employer who fails to pay minimum wage, not only can the company be made to pay employees what they should have been receiving, but you personally could face a fine and criminal prosecution.

 

Check out the Minimum Wage Rates below to make sure you stay one step ahead: Sandersons offer advice on this and any other aspect of employment law. Contact Elaine Carson, Steven Dixon or Sarah Coates-Madden at Sandersons Solicitors on 01482 324 662.

 

Minimum Wage Rates

 

From 1st October 2007 the NMW will increase:

 

For those aged 22 or over        from £5.35 to £5.52 per hour

For 18-21 year olds                 from £4.45 to £4.60 per hour

For 16-17 year olds                 from £3.30 to £3.40 per hour

 

If you need help and advice on any aspect of employment law, please contact:

Stephen Dixon, Elaine Carson or Sarah Coates-Madden

 

Sandersons, Solicitors

17-19 Parliament Street

Hull

HU1 2BH

 

Tel:       01482 324662

Fax:      01482 223110

e-mail:  enquiries@sandersonssolicitors.co.uk

 

 Source: The Federation of Small Businesses, September 2007