Employment Law Solicitors: Information on the NMW
Saturday, January 1st, 2011Employment law solicitors groups exist to help make sure that employee rights are respected. Of course, ensuring that employers are aware of the complexities of employment law is a major part of this role. This is why whenever there is some sort of change to UK employment law, employment law solicitors are so visible in the media explaining the new rules. A very recent example is that of the Equality Act which was explained many times over by solicitors in the press. However, as well as the implementation of the Equality Act at the beginning of October, there were other changes to employment law this month. Of course, the National Minimum Wage also went up.
Of course, most employment law solicitors know that the majority of reasonable employers are fully aware of what they should be paying their workers. 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.
Employment law solicitors also state that there is some confusion occasionally regarding who is entitled to the NMW. As a rule of thumb, most adults who are legally working in the UK are entitled. This is the case regardless of whether they work casually, full time or part time and even if they have no written contract of employment. People who are not entitled are those who are self-employed, volunteers, still of compulsory school age, students on work placements of under a year which form part of their HE or FE course and those people on certain government 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. Accommodation provided by an employer to an employee can count as part of the NMW, but only to the value of £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.
If an employer believes that they are entitled to receive the NMW but aren’t doing, they should seek advice from either the CAB or employment law solicitors. It is HMRC which has the power to enforce NMW legislation. HMRC can serve employers with a fine, as well as obliging them to repay to workers what is owed.