The National Living Wage (NLW) has been introduced today (1 April 2016).
It is £7.20 per hour and applies to all those aged 25 years and above.
It is timely therefore, to remind ourselves of the actions that should have been taken to ensure that no penalties are incurred through not complying with the law. If you haven’t done so already, do the following now:
- Check through your records to identify any employees who are entitled to received the National Living Wage (NLW)
- Alter your payroll systems so that they flag up any employee who reaches their 25th birthday. You should then review these employees to see if they need to receive a pay increase.
- Write to your employees who are entitled to receive the NLW to tell them that they are now receiving it.
If you have not taken these actions, it would be wise to do so now.
You are liable for for a fine of up to £20,000 per employee if you are not paying at least the National Minimum Wage or National Living Wage.
Don’t forget, the National Minimum Wage (NMW) still applies, the National Living Wage has been introduced in addition to the NMW.