Employment law
News: Increases in the costs of employment
- Date: 18/03/2008
- Author/Solicitor: Nick Arron
This an early warning! The Government has announced the National Minimum Wage increase in October 2008:
Adults
Workers aged 22 and over, will increase to £5.73 an increase of 21p.
18-21 year olds
Will increase to £4.77, an increase of 17p.
16-17 year olds
Will increase to £3.53, an increase of 13p,
The minimum wage applies to nearly all staff that are above the compulsory school age. Someone is above the compulsory school age if they are in the year of their 16th birthday and the school year has ended.
And don't forget, tips given directly to the employee don't count towards the minimum wage, but tips which are paid to the employee through the payroll can count towards the minimum wage.
Other increased costs to your business of which you should be aware: From 6th April 2008 Statutory Maternity Pay increases to £117.18 per week from £112.75 and Statutory Sick Pay increases to £75.40 per week from £72.55.
If you don't pay the increases to your staff, they can bring a claim in the Employment Tribunal or the civil courts. Furthermore they could bring a claim in the Employment tribunal if you sack them or take action against them for trying to ensure they receive the increases. The employee can initiate the claim from day one of their employment - they do not need a year's service.
For more information please contact Nick Arron