Ensuring Compliance with the
New National Minimum & Living Wage
The government has announced updates to the National Minimum Wage (NMW) and National Living Wage (NLW), effective from 1st April 2025. These adjustments aim to ensure fair remuneration across various age groups and impacts both employers and employees, making compliance essential to avoid legal consequences.
Key Updates on the New National Minimum & Living Wage
The government reviews wage rates annually, and the latest adjustments are as follows:
Current Rates (from 1st April 2024):
- Age 21 or over (NLW): £11.44 per hour
- Age 18 to 20: £8.60 per hour
- Under 18: £6.40 per hour
- Apprentices: £6.40 per hour
Who is Entitled to the Minimum Wage?
Anyone who is legally classified as an employee or worker must receive at least the NMW or NLW, including:
- Full-time, part-time, and casual workers
- Agency workers and apprentices
- Offshore and seafarer workers
Zero-hours contract workers
However, some individuals are not entitled to the minimum wage, including volunteers, self-employed workers, company directors, and armed forces personnel.
Legal Obligations for Employers
Employers must ensure full compliance with wage laws. Failure to do so may result in:
- Financial Penalties: Fines of up to £20,000 per affected employee.
- Backdated Payments: Employers must pay any shortfall for up to six years.
Legal Action: HMRC can take enforcement measures, including public listing of non-compliant businesses.
Employee Rights & How to Raise Concerns
Employees should check their payslips and use the government’s National Minimum Wage calculator to verify compliance. If underpayment occurs, employees can:
- Raise the issue informally with their employer.
- File a formal grievance.
- Report non-payment to HMRC.
Make a claim through an employment tribunal.
How we can help
At Portway Solicitors, we provide expert legal support for employers and employees on wage law compliance, dispute resolution, and legal representation.
Our services include:
- Employment contract reviews to align with new wage laws.
Representation in wage-related disputes.
For assistance with these legal changes, contact our team at Portway Solicitors. Ensure compliance and protect your rights under the updated wage regulations.
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