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Entries matching label national-minimum-wage:

Rise in minimum pay for Apprentices

24 Sep 2008, 17:28 by Joseph Neville

Labels: employee, employer, employment-law, employment-tribunal, national-minimum-wage

 The government has announced that the minimum pay for apprentices will rise to £95 per week. The increase will mainly benefit low-paid sectors such as care and hairdressing, described by the government as employing more women, rather than construction where apprentice wages are on average already higher than this.

This minimum is not under the auspices of the national minimum wage legislation, from which apprentices under the age of 19 or in their first year are exempt, but instead is a contractual rate between employers and the Learning & Skills Council. The government has however amended the Low Pay Commission's terms of reference to consider the future of the exemption, bearing in mind that by the time the school leaving age is raised to 18 in 2013 it is intended there will be around 500,000 apprentices in the UK.

Written by Joseph Neville, Barrister at New Walk Chambers, specialising in Employment law.

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National Minimum Wage Changes

21 Aug 2008, 15:50 by Joseph Neville

Labels: civil, employee, employment, low-pay-commission, national-minimum-wage

The government has announced a change in the National Minimum Wage legislation from October which will prevent waiters' tips counting towards the minimum. The current position is that an employer may pass all tips through its payroll such that the total amount received by the employee goes to satisfy the employee's entitlement to National Minimum Wage.

There are also some reports that the government may extend entitlement to the full rate to 21 year olds. This will be subject to advice from the Low Pay Commission and consultation.

The current rates of the National Minimum Wage are:

  • £5.52 per hour for workers aged 22 years and older
  • A development rate of £4.60 per hour for workers aged 18-21 inclusive
  • £3.40 per hour for all workers under the age of 18, who are no longer of compulsory school age.

These limits are reviewed annually. The new rates from 1st October 2008 will be:

  • £5.73 per hour for workers aged 22 years and older
  • A development rate of £4.77 per hour for workers aged 18-21 inclusive
  • £3.53 per hour for all workers under the age of 18, who are no longer of compulsory school age.

The application of the National Minimum Wage legislation can be legally complex, especially when combined with the right not to suffer unlawful deductions from wages, and workers' right to holiday pay. New Walk Chambers' employment specialists can help.

Written by Joseph Neville, Barrister at New Walk Chambers specialising in Employment Law.

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