Hopefully you are aware that you will have to pay the National Living Wage, of £7.20 per hour, to staff who are aged 25 or over, from April. Effectively, this introduces a new tier to the National Minimum Wage.
The concept sounds simple but you need to be aware that not everything that you pay will be taken into account for the purposes of assessing compliance with the National Living Wage, or the National Minimum Wage. In particular, enhancements for overtime and shift working do not count. For example, if a worker is normally paid £7 per hour but £10 when working overtime or nights, only the £7 will count towards their pay for the National Minimum Wage or the National Living Wage.
We are working with several of our clients to renegotiate pay arrangements before April so that they are not caught out by this.
If you would like us to help you with any issues arising from the National Living Wage, please get in touch.