On 1 April 2016 the Government are due to introduce a mandatory national living wage for all workers aged 25 and above. It is part of their commitment to make work pay. There are currently no proposals to introduce a mandatory national living wage for those workers who are under 25.
Some employers may already pay more than the national minimum wage, but from 1 April 2016 it will be compulsory.
The rate of pay will be £7.20 per hour for workers aged 25 and above. If your employer doesn’t pay you in line with this from 1 April 2016 then this will amount to an unlawful deduction from your wages. It remains to be seen whether being disciplined for raising a concern about failure to pay in line with the national living wage will be afforded the same protection as is currently given to complaints about failure to pay the national minimum wage.
If an employer fails to pay in line with the mandatory national living wage rate, then they can also be subjected to a financial penalty of up to 200% of the amount owed, unless payment is made within 14 days. The maximum fine for non-payment will be £20,000 per worker, and employers who fail to pay can be banned from being a company director for up to 15 years.
The National Living wage should not be confused with the Living Wage which is already in existence, but part of a voluntary scheme organized by the Living Wage Foundation providing enhanced rates of pay calculated according to the cost of living.
If you are concerned about whether you are being paid correctly, or if you have any other questions relating to your employment rights, then we can help. Here at Beecham Peacock we have a trusted relationship with some of the largest trade unions in the country to protect your working rights. For further information call us on 0191 232 3048 or email firstname.lastname@example.org.