April has seen the introduction of the National Living Wage.
There are 4 categories of a worker to whom the National Minimum Wage (NMW) applies but from April 2016 an additional category of worker is being added. The fifth category of worker is those aged 25 or over. It is to these workers, that the National Living Wage (NLW) will apply.
The NLW will effectively result in a higher NMW for older workers who fall into this fifth category. The government has set its first
premium at 50p, which means the NLW is 50p higher than the NMW.
This means that from this month you must ensure that all of your workers aged 25 or over receive at least £7.20 per hour.
The existing provisions for determining whether the NMW has been paid will also apply to the determination of whether the NLW has been paid.
Employers should check that their staff are receiving the NLW where applicable, and if not, action should be taken to remedy this to avoid claims at the Employment Tribunal.
If you want any advice in relation to any of the changes being implemented in April, please do not hesitate to contact a member of the Flint Bishop Employment Law team on 01332 227 595.