National Living Wage
24 April 2016New legislation came into effect this month in the form of the National Living Wage, not to be confused with either the National Minimum Wage – or the Living Wage. This new law means that anyone over the age of 25 and not in the first year of an apprenticeship, will be entitled to at least £7.20 per hour, that’s an increase of at least 50 pence per hour.
It is estimated that 1.3 million low paid workers will be better off under the new law, though it’s feared that many businesses may be hit hard with some predicting huge losses in profit and up to 60,000 job losses as a direct result of the rise as businesses try to offset the cost.
National Living Wage
Effective from April 1st 2016, penalties for non-payment of the National Living Wage will have been doubled, from 100% of the money owed, to 200%. Employers found guilty may be disqualified as a company director for up to 15 years. The maximum penalty will remain unchanged at £20,000 per worker.HM Revenue and Customs (HMRC) have set up a new enforcement team to pursue criminal prosecutions.
Those that have benefitted from the rise varies greatly across the country with 22% of employees working in Sheffield getting the pay rise whilst workers in parts of London and the South have seen little if any benefit. Only 3% of London workers will see any increase in wages.
How does the National Living Wage effect your business?
If you have concerns about the National Living Wage, if it’s implementation is having a detrimental effect on your business, call Solved hr for a confidential chat about your options, there are always options, on 07714 790024 or email info@solvedhr.co.uk.
We are well versed in providing our clients with practical and effective HR solutions.