We would like to take this opportunity to inform you of the National Living Wage (NLW) which is being introduced as of 1st April 2016.
The NLW supports the government’s vision of a higher wage, lower welfare, and lower tax society. This sees that from 1 April 2016 workers in the UK aged over 25 earning the minimum rate of £6.70 per hour will see a 50p increase to £7.20.
As an employer it is your responsibility to ensure that all your employees who are 25 and over and not in their first year of an apprenticeship receive the NLW of £7.20 per hour.
Hours worked includes travel time to and from non set place of work.
If you make a deduction such as deposits and training you must ensure that these deductions are stated in their contract of employment otherwise any deductions that are made will need to have a net effect that does not reduce the hours pay to less than the NLW.
Employers found to have paid less than the NLW and National Minimum Wage, not only will they have to pay the employees the amount owed but also have to pay HMRC a penalty. This penalty is increasing from 100% of the amount underpaid to 200% on amounts underpaid after 1st April 2016.
More information can be obtained from the Gov.uk website.