Minimum wages - reputation and enforcement 7 March 2018
It is an important time to get involved and make sure you are compliant now with minimum wages, and have plans in place to adhere to changes going forward.
We have the requirement from April 2019 to include on payslips the number of hours worked by the employee for which they are being paid.
We also have the Low Pay Commission’s annual consultation on the levels of the National Minimum Wage rates, and this year they are also considering both the potential impact of a 'premium wage', for those hours that are not 'guaranteed', as well as alternative means for tackling the issue of ‘one sided flexibility’, which is some workers experiencing uncertain and unpredictable work schedules. We have to factor in the increase in minimum wage rates from 1 April this year and let's not forget the media who are 'all over it' when a company, especially a household name, is 'named and shamed' on GOV.UK for failing to pay the minimum wage. It is really important that you are confident with your minimum wage compliance and processes and even if you feel you are, a review is never a wasted exercise. Do have plans in place to deal with not only the definite changes going forward, but also the possible changes? We will keep you informed and hopefully you will get involved with us as consultation moves forward with the LPC.
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Low Pay Commission consultation 2018 7 March 2018
The Low Pay Commission (LPC) has opened its annual consultation on the levels of the National Minimum Wage rates, including the National Living Wage.
This year’s consultation contains extra questions to help the LPC with two extra strands of work as they have been asked to look at a recommendation made in ‘Good Work - The Taylor Review of Modern Working Practices’.
The LPC will be considering both the potential impact of a premium, i.e. a higher minimum wage, for those hours that are not 'guaranteed', as well as alternative means for tackling the issue of ‘one sided flexibility’, which is some workers experiencing uncertain and unpredictable work schedules.
Separately, the LPC is also conducting a review of the minimum wage structure, encompassing:
• a review of the youth rates of the minimum wage, in light of changes over time in young peoples’ participation in work and education, and the introduction of the National Living Wage; and • a review of the Apprentice Rate, in light of significant policy changes to apprenticeship policy in England.
The closing date for submission is 1 June 2018 and you can submit via this email address. All details and a full list of consultation questions can be found by following this link and downloading the letter within.
In addition to this written consultation, the LPC also conducts a series of visits around the UK, and holds bilateral meetings to gather evidence from individual organisations. Find out more about the visits on the LPC’s website and blog. If you would like to arrange a meeting, please email lpc@lowpay.gov.uk.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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