What do I do if I know of someone who is being paid less than the National Minimum Wage?

Wed, 11/26/2014 - 16:29 -- Sarah Vero

It is illegal to pay staff less than the National Minimum Wage and is punishable by fines of up to £20,000 per worker.

If you have any questions about the National Minimum Wage or if you are being paid less than the minimum wage then phone the Pay and Work Rights Helpline which is operated by HMRC on Tel 0800 917 2368.

Lines are open from 8.00 am to 8.00 pm, Monday to Friday and 9.00 am to 1.00 pm on Saturday. All calls to the helpline are confidential.

These are the current National Minimum Wage rates:

What about TUPE?

Fri, 10/31/2014 - 19:40 -- Sarah Vero

Employees transferred under the Transfer of Undertakings (Protection of Employment), or TUPE, regulations should be paid at least the Living Wage in line with your other employees.

The licence requires that all those employees who work on your premises for 2 or more hours a day, in any day of the week, for 8 or more consecutive weeks must be paid the Living Wage. So technically you have up to a maximum of 8 weeks to implement the pay increase.

Do I have to give everyone in my organisation a pay rise?

Fri, 10/31/2014 - 19:39 -- Sarah Vero

The Living Wage rise only applies to staff whose salary is directly affected by the Living Wage.

You are not required to offer the same % increase to all staff.

However, many employers choose to maintain pay differentials, particularly for those on lower salary scales. Employers should negotiate with staff and trade unions on pay rises for staff who are not directly affected by the rise in the Living Wage.

What if one of our employees is worried that their benefits will be affected by us introducing the Living Wage?

Fri, 10/31/2014 - 19:33 -- Sarah Vero

Employees in receipt of benefits may have their benefits reduced as their wages rise. In the vast majority of cases the benefits will "taper" off. So the employee will not be worse off, just better off by only a small amount

There are no known cases of employees being worse off as a result of receiving the Living Wage for benefits and allowances where there is a ‘taper’ in place.

What if I work in shared building and some workers are employed by the building management company?

Fri, 10/31/2014 - 19:06 -- Sarah Vero

All staff that work on your premises for 2 hours or more a day, in any day of the week, for 8 or more consecutive weeks of the year must be paid the Living Wage.

You may have cleaners that work on your premises, that are shared with other tenants. This first step is to find out from your building management company whether the cleaners are paid the LW.

How far down the supply chain should it go?

Fri, 10/31/2014 - 19:00 -- Sarah Vero

The Living Wage applies to all staff who work regularly on your premises. The exact definition is those who work 2 or more hours a day, in any day of the week, for 8 or more consecutive weeks of the year. The Living Wage does not apply to contractors that supply your organisation with products e.g. stationary suppliers.

We recommend that you communicate you Living Wage commitment to everyone you do business with, and encourage them to consider implementing the Living Wage.

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