Whether you are the employer of a large number of staff or just one – and that includes many who employ domestic staff – you are legally obliged to pay the National Minimum Wage.
The issue is currently in the spotlight for two reasons: firstly, the government is pressing ahead with its campaign to name and shame those who effectively cheat their staff out of the money they are due and secondly, new rates for the National Minimum Wage have just been announced.
Not only is the government pursuing public shaming of those not paying the correct hourly rate, but the penalties have been vastly increased and are likely to rise even further. At present, an employer can be fined up to £20,000, but legislation is being planned so that the fine may be applied to each underpaid worker, rather than each employer.
The new increase in rates will come into effect on 1 October 2015. For adults, the National Minimum Wage will increase by 20p an hour to £6.70.
The changes will benefit more than 1.4 million workers and were recommended by the Low Pay Commission, the independent body that advises the government on the National Minimum Wage.
It is vital for those who source their own staff to be aware of these changes, but a far better route is to use The Graham Agency to find the best candidate for your home. We will always advise on the wage levels necessary to meet the legal requirements.