National Minimum and Living Wage Leeds

Employees aged 25-years-old and above must be paid the National Living Wage and employees under the age of 25-years-old must be paid the National Minimum Wage.

Employment Solicitors Leeds are specialist employment law solicitors offering a complete range of advice and support in every aspect of the National Minimum Wage and National Living Wage compliance.

Under the legislation of the National Minimum Wage Act 1998, The National Minimum Wage was instigated on the 1stApril 1999 to establish all employees,from school leavers to retirement age,were guaranteed a minimum hourly rate of pay according to their age. Both National Minimum Wage and the National Living Wage rates of pay are eligible for a yearly review and increased on the 1st April.

The legislation for both the Minimum and Living Wage can be quite complex and will often require professional guidance to settle problematic cases in accordance with the law and funding.

It is the responsibility of the Inland Revenue to investigate and ensure the correct observation of the minimum wage regulations.They have the power to enforce back pay and to issue fines where required. Continual and intentional breach of the Minimum Wage laws can lead to criminal proceedings against offending employers.

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National Minimum Wage & National Living Wage Hourly Rates

The rates from 1st April 2018 stand as follows:

National Living Wage for workers age 25 and over  £8.21 per hour

National Minimum Wage for workers age 21–24     £7.70 per hour

National Minimum Wage for workers age 18–20     £6.15 per hour

National Minimum Wage for workers age 16–17     £4.35 per hour

A special rate exists for workers employed under an apprentice scheme.Employees aged under 19-years-old, or 19 years and over for the first year of their scheme,are applicable to a rate currently standing at £3.90 per hour. Apprentices aged over 19-years-old and in their second year of a scheme are entitled to the National Minimum Wage—the precise rate will depend on their age at that time.

Exceptions To The National Minimum & National Living Wage

You are not entitled to the minimum wage in the following circumstances:

  • If you are self-employed
  • If you are under 16-years-old
  • If you are a company director
  • If you live or work with a family as an au pair or a nanny and do not pay towards your accommodation or meals
  • If you are in the armed forces
  • If you are a volunteer or are gathering work experience
  • If you are a prisoner
  • Some trainees and interns—this area is complex; any worker unsure of their rights should contact us for full details
  • Some farm workers—again, this is a complicated area; if in doubt contact our specialist team for full details

All other employees should be paid according to the National Minimum Wage and National Living Wage guidelines. This also includes:

  • Pieceworkers
  • Home workers
  • Agency workers
  • Commission workers
  • Part-time employees
  • Casual workers

What Counts Towards National Minimum Wage & National Living Wage

You should receive the National Minimum Wage rate for your age in relation to:

  • Your basic salary
  • Specific accommodation allowances
  • Any bonus, commissions or incentive payments based on performance
  • Additional allowances paid by way of HM Revenue &Customs dispensation agreements

Areas that don’t constitute the Minimum Living Wage rates are:

  • Advances of wages
  • Premium pay for overtime or shift work
  • Tips and gratuities paid through payroll
  • Pension payments
  • Retirement payments
  • Redundancy or settlement payments
  • Some payments in respect of absences
  • Other benefits that may or may not have a monetary value
  • Loans from your employer
  • Allowances that are not attributable to employee performance, for example, an on-call allowance
  • Repayment of expenses spent in connection with the job
  • Expenses for travel to a temporary workplace eligible for tax relief under the Income Tax (Earnings and Pensions) Act

Areas Of Complication

Our expert guidance is often required in specialist areas.We can explain what is expected to be included in many differing employment schedules and working hours. Please contact us for confirmation of the law in regards to:

  • Time spent in training and on training courses
  • Time spent being on call
  • Being paid for travelling on business, for example, between appointments or to meetings with clients, travelling to conferences and training
  • Employer deductions for accommodation
  • Family members: a worker who is a member of the employer’s family,living in the family home and who shares family tasks and activities
  • Employees who live in the employer’s family home who are not members of their family but are treated as such. This includes being provided with food and accommodation and sharing in the family tasks and activities. They are not liable to deductions or to make payments to the employer for provision of food and accommodation or if the work undertaken would not be classed as work, if performed by a member of the employer’s family

Failure To Pay The National Minimum And Living Wage

Whenever an employer fails to pay their staff the Minimum or Living Wage, they are breaking the law. It is also against the law if the employer falsifies records of payment to show compliance where they have actively broken the rules.

Any employee not being paid the correct rate for their age should attempt to resolve the situation by discussing the issue with their employer. If they cannot reach a suitable resolution or the employer refuses to listen to the complaint, then the employee should submit a written complaint – this is known as a grievance.

Once a written complaint has been made, and if the employer still refuses to act upon it, then the employee can approach the HMRC (HM Revenue & Customs) to investigate their legal rights or raise an employment tribunal to formalise their complaint. The employee can only choose one of the options available. They cannot pursue both areas of investigation.

Awards For Non-Compliance To National Minimum Wage & National Living Wage Rates

A successful claim against an employer can result in a maximum fine for non-payment of £20,000—and if the employer refuses to pay the fine, they will be banned from the role of company director for up to 15 years.

Contact Employment Solicitors Leeds Today

As specialist employment solicitors, we can guide you in the correct processes and guidance of legislation in:

  • Eligible employee hours pertaining to the National Minimum Wage
  • Establishing employee payment schedules
  • Confirming if allowance payments constitute to National Minimum Wage rates
  • Hourly rates applicable to different shifts, shift patterns and weekend work
  • Confirming allowances to working times including training, study and travel
  • Confirmation of the rules pertaining to nighttime shifts or where workers spend time asleep

You can call on 0113 4334 118 or email for an initial consultation regarding your employment position. We will offer you complete and full advice in easy to understand terms to help you to establish the most likely outcomes for your case in a relaxed and pressure-free environment.

We understand how difficult this time can be, so our expertly trained staff deliver all of our services with empathy and understanding. It is entirely up to you whether you decide to pursue your claim or not. We’re here to help you make those critical decisions backed by years of experience and industry knowledge.