Are you paying your staff enough?

Karen’s first job was a paper round. She earned £1.50 per week for tramping around the streets at the crack of dawn in all weathers, posting papers through nasty, snapping letterboxes and trying to avoid nasty, snapping dogs.

OK, so that was a long time ago, and earnings have increased since then.

These days, almost all employees are entitled to earn a minimum amount per hour, by law. As an employer – even if you only have one member of staff ­ – you have to comply with the regulations.

You therefore need to be aware that new regulations come into force from 1 April 2016.

National Living Wage

There are two main changes you need to be aware of:

  • There is now a National Living Wage (NLW) for workers aged 25 or over, meaning you must pay them at least £7.50 per hour.
  • If you underpay the National Minimum Wage (NMW), the penalty is doubled, increasing from 100% to 200% of the arrears due to each worker.

The Regulatory Policy Committee estimates these changes will cost private sector employers an extra £1.1 billion. This sum is made up of £700 million to meet the new NLW, plus £137.5 million to pay additional pensions and National Insurance contributions.

It is planned to increase the NLW to 60% of average earnings by 2020, expected to be over £9 per hour.

National Minimum Wage Chart

  • Aged 21 to 24 = £7.05
  • Aged 18 to 20 = £5.60
  • Aged under 18 = £4.05
  • Apprentice = £3.50

If your contract with your employee is for payments below the minimum wage, it’s not legally binding.

Who qualifies?

In order to qualify for the National Minimum Wage, workers must be of school leaving age or over, on the last Friday in June of the school year they turn 16.

Your workers are entitled to be paid minimum wage even if they are part-time, casual labourers, agency workers, homeworkers, apprentices, trainees, on probation, disabled, foreign, or offshore.

Those who don’t qualify include company directors, volunteers, students, family members who live in your home, workers younger than school leaving age, and prisoners.


Make An Enquiry

Call us now on 020 7113 4003 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.

Free Enquiry

Back to all news

Share Article With:

Make An Enquiry

    Global Excellance Awards

    Client Reviews

    DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to

    Venetia Lawson-Cruttenden [solicitor] is fantastic!  She is always so thorough and efficient and gives you the

    DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome

    We were very pleased with the way that DG Law helped us on our transaction

    Thanks for all the help from DG Law in pulling together our somewhat complicated loan. 

    DG Law resolved a difficult lease renewal for us and their services were excellent –

    I needed understanding and experienced legal advice. DG Law provided an excellent service at a

    My experience was second to none – the service was professional and personal. DG Law

    DG Law always step up to the plate on our transactions and handle the various

    DG Law was recommended to me and my partner and I received excellent advice –

    Having worked with DG Law a number/couple of times now, I have been really impressed

    DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting

    DG Law organised and ran a very useful session to help to make our team’s

    DG Law came recommended to me and whilst setting up a new business it was

    We were recommended three lawyers to handle the sale of our seven year old successful

    Why Choose Us?

    We live by our core values of transparency, flexibility and being honourable – every day

    We put ourselves in your shoes so we understand your problems from the inside out

    We deliver our advice in a way that is easy to understand