National Minimum Wage 2014

Employment Facts and Stats 

National Minimum Wage  Summer 2014

 

Law update Recruitment

Law update
Recruitment

The National Minimum Wage (NMW) rate is dependent on age and whether your employee is an apprentice. To qualify for the National Minimum Wage a person must be school leaving age.

Please note that whether a person is considered school leaving age or not will be dependent on exactly when in the year they were born. It is always best to check.

The NMW is usually updated every October.

The rates below were updated in October 2013 and currently apply. The rates will however increase in October 2014, for example the over 21 has already been reported to increase to £6.50. We will publish the new rates in our Autumn/Winter update if you would like us to send you a copy either register on any of the pages within our HR Newsroom or simply e-mail me at carole@hrsupportforbusiness.co.uk

 Current NWM rates

 

21 & over 18-20 Under 18 Apprentice*
Current rate £6.31 £5.03 £3.72 £2.68

 

*Important note: the apprentice rate is for those who are 16-18, and those who are 19 or over, but who are in their first year. Otherwise the apprentice would be entitled to the NMW for their age.

The Government considers there is still widespread abuse by some employers not paying the NMW. This is despite widespread knowledge of the NMW obligations on all employers (regardless of their size).

depositphotos_1935388-Pounds-BanknotesIn response, any person found guilty of not paying the NMW is served a notice. The notice will state the arrears of NMW to be paid and, a financial penalty to be paid to the Secretary of State. This must be paid within 28 days.

The financial penalty is 100% of the total NMW underpayment and subject to a minimum £100 and a maximum £20,000 penalty. Penalties will be reduced by 50% if complied with within 14 days.

Important law change.  Within the recent Small Business, Enterprise and Employment Bill (25th June 2014), the maximum penalty of £20,000 will now apply on a ‘per worker’ basis rather than per employer basis.

This could escalate to an amount that could quite simply put a small business out of business. A very high risk strategy for any business to take.

Taken from our Facts and Stats update Summer 2014

Carole Thomson

Carole Thomson

 

Hello, I’m Carole Thomson and I founded HR Support for Business to give small and medium businesses access to a trusted HR Resource Centre when needed.

No up front fees or subscription fees.  You just call us when you need us.  Or access tried and trusted HR Tools you may need from the HR e-Store.

I hope you have found this employment data useful.  With so many changes in the world of Employment Law and statutory payments to remember, I will continue to try and provide you with any updates I feel may be useful to you.

All the stuff you need to know and do when employing someone can be complex to manage, so needless to say, if I can be of any help please do not hesitate to contact me.  We offer a 30 no obligation free phone consultation to discuss your business needs and how HR Support for Business can help you.

 

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If you have found this article useful, why not have a look around our HR Newsroom and see if there is anything else we have posted that is useful to you.

Perhaps our latest Employers Newsletter or the full Employment Facts and Stats update that this article was extracted from.  Combined these two documents will inform you of key employment law changes and the up to date statutory rates that will effect your business.  And of course, they are free of charge.

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 Regards

Carole

Carole Thomson Chartered FCIPD, Tech IOSH
Senior HR Consultant and Trainer
HR Support for Business
Tel: 078994 25916/ 079412 62492 /01295 788 579   carole@hrsupportforbusiness.co.uk
www.hrsupportforbusiness.co.uk  /in/carolethomson

 

 

 

About Carole Thomson

Following 16 years implementing HR solutions for businesses I founded HR Support for Business. Designed to be a one stop trusted HR Resource centre for small and medium businesses. Working locally or virtually we can be your HR team member when you need us. Or give SMEs access to tried and trusted HR contracts, policies and documentation. A self service HR resource to make it easier for SMEs to manage their people and save time and money in development and management time.

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