Like it or not, from an employee rights perspective, 2025 is going to be a big year, and if you haven’t done anything to prepare for the changes coming your way, I’d strongly recommend it.
Before you get there though, it’s worth highlighting that lots of employers aren’t even getting the basics right now, even without the additional responsibility they’ll have as legislation changes this year.
And with that in mind, let’s talk minimum wage, courtesy of a handy summary from Martin Lewis:
“New 2024 figures from the Low Pay Commission show that 370,000 people on minimum wage were paid less than they should’ve been. With the minimum wage set to jump in April, it’s even more important all those on lower incomes don’t just assume their employers are following the rules – even big names get it wrong.
For example, in Feb 2024, Easyjet, Greggs, Moss Bros and Estée Lauder were among those included in the Govt’s list of 500 firms named for underpaying min wage, though some of the reasons were complex – a new list’s due soon. So it’s worth checking…”
Why would you be paying less than minimum wage “by accident”?
- UNIFORM, TOOLS & SAFETY CLOTHING (most common fail). If your employees are responsible for buying the above, the cost shouldn’t take the income below the equivalent minimum wage over the pay period (eg, monthly, if paid monthly).
- NOT PAYING FOR ALL WORKING TIME. Overtime, security checks, handovers, opening up, being on call, the list goes on; if someone is working, they need to be getting paid at least minimum wage – even if they’re not doing exactly the same job they “usually” do.
- YOU CAN’T ‘TOP UP’ WITH TIPS OR OVERTIME. These must be on top of minimum wage.
- COMMISSION ONLY? It no longer exists. Employers must top up with a salary to meet the minimum wage.
- ACCOMMODATION COSTS. You can only reduce pay by a maximum of £69.93/wk below minimum wage if you provides accommodation. This includes charges such as rent, gas, electricity, furniture and laundry.
- NOT ‘REAL’ APPRENTICESHIPS. If you’re hiring 18+ apprentices and not giving them any structured training, you need to be careful about what you’re paying them, as there’s a good change it’s not enough
- NOT UPDATING AMOUNTS. The minimum wage is due to increase in April, and it should increase on 18th and 21st birthdays, taking effect in the employee’s first full pay period after the change.
I hope this helps – if you’ve got any questions, give me a call. It’s worth getting your house in order before the Government asks more of you!
