What the minimum wage means to you

THIS popular weekly column by welfare rights expert Jim Strang this week features an update on the National Minimum Wage and is also a guide for employers. This is not a comprehensive guide and should not be considered as such.

NATIONAL MINIMUM WAGE

From April 1, the National Minimum Wage was introduced. This means in most cases if you are aged 22 or over employers have to pay at least £3.60 per hour and for people aged 18-21 at least £3. If the employer takes on a worker aged 22 or more and is providing accredited training, then the employer has to pay £3.20 per hour for the first six months. In this case, the employer has to come to an agreement with the worker committing themselves to providing at least 26 days during that period.

IS EVERYBODY COVERED?

Most workers in the UK are covered. This includes homeworkers, casual workers and piece workers. There are other workers such as apprentices who are not covered but you are advised to consult the book A Detailed Guide to the Minimum Wage or seek advice from an employment specialist. If you are an employer, it may save you money in the end.

WHAT IS PAY?

Not all payments by an employer count as pay as far as the Minimum Wage is concerned. Payments such as bonus and performance-related pay, as well as incentives, DO count as pay, while allowances such as regional allowances which are not consolidated into an employee's basic pay DO NOT.

EMPLOYER'S OBLIGATIONS

Employers may be asked to prove that they are paying the National Minimum Wage. Obviously, it would be prudent, therefore, for the employer to keep a good record confirming this. When a worker makes a written request for his/her own records, the employer must allow him/her to see them within 14 days. This deadline may be extended with the worker's agreement. If there is a dispute, the burden is on the employer to prove that the minimum wage is being paid.

CRIMINAL OFFENCE

If an employer refuses to pay the minimum wage, then it is a criminal offence and they could face a fine up to £5,000. If an employer dismisses a worker because he becomes eligible for the National Minimum Wage or for a higher rate of it, it is unfair dismissal irrespective of length of service.

IF YOU need to know more, you can write to Jim Strang at Unit 7, 36 Beechwood Drive, Beechwood Estate, Birkenhead, enclosing an S.A.E. If you wish him to act for you, call him on 606-1188, 10am-4pm, Monday to Friday, or visit him at the above address. It is not necessary to make an appointment to see Jim, but ring first to make sure he's in.

Jim Strang represents clients on a 'no win, no fee' basis. Details are available from him.

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