How will the forthcoming rise in minimum wage affect your company?
The National Minimum Wage (NMW) will rise by 7p to £5.80 an hour for workers aged 22 and over on October 1st 2009.
The rate for 18-21 year-olds will also increase to £4.83. The NMW for 16 and 17 year-olds will go up by 4p to £3.57 an hour.
Whilst you may be aware of these changes there is also a change to the law coming into force at the same time.
If you run a restaurant or similar business you will know that tips or service charges that are paid through the payroll can be used to count towards the NMW. From the 1st October this will be unlawful. Since April of this year NMW related fines have been introduced. If found to have underpaid your staff you will be liable to repay the full underpayment ( at current rates, not the rate when it occurred!) . Plus the compliance officer now has the authority to issues a penalty alongside the repayment . The fine is 50% of the underpayment subject to a minimum of £100 and a maximum of £5000
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