Here is a quick reminder of key employment law changes which come into effect today.
- Increase in National Minimum Wage ("NMW") rates
The new increased NMW rates are as follows:
- For workers aged 16 and 17: £3.57 (from £3.53).
- For workers aged 18 – 21: £4.83 (from £4.77).
- For workers aged 22 and over: £5.80 (from £5.73).
- Tips & Gratuities
Previously, the National Minimum Wage Regulations 1999 provided that service charges, tips, gratuities and cover charges which were not paid to workers through payroll did not count towards the NMW. By contrast, when such payments were paid through the payroll, these amounts did count towards discharging the employer's liability to pay the NMW.
The Regulations have now been amended so that, from today, employers will no longer be able to include in a worker's NMW any of these types of payment, whether paid via the payroll or otherwise.
- Increase in a "week's pay"
Following the announcement in the Budget, the statutory limit on a week’s pay for the purposes of calculating statutory redundancy payments has been increased from £350 to £380, where the effective date of dismissal occurs on or after today. The increase will also apply to other things to which the weekly limit also applies, for example, the basic award for unfair dismissal. As a result the maximum statutory redundancy payment/basic award will now be £11,400 (previously £10,500).