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The National Living Wage
On 1 April 2016 the National Minimum Wage (Amendment) Regulations 2016 (“the Regulations”) will come into force.
The Regulations introduce a premium rate, known as the National Living Wage, which park owners must pay to all their employees aged 25 or over. It is essentially a higher minimum wage rate for older employees.
The National Living Wage is being introduced at a rate of £7.20 per month from 1 April 2016.
The penalty for any park owners who fail to pay their employees the National Minimum Wage is increasing from 100% to 200% of the underpayment due to the employees, on top of the actual underpayment due to the employees which is payable at the current minimum wage rate. Park owners who fail to pay the minimum wage can now be publicly ‘named and shamed’ and may even be subject to criminal prosecution.
From our experience, park owners need to be particularly careful about keeping records of hours actually worked by employees (to defend against future claims) and also in respect of salaried employees who work longer hours in the Summer where an annualised hours contract may be appropriate.
If you have any queries regarding the National Living Wage or if you are interested in subscribing to our Parklaw service contact the Parks Team by telephone on 01392 207020 or email email@example.com