Reminder – The National Living Wage


If you fail to pay employees the above minimum per hour then your employee can bring a claim for unlawful deductions.

Author: Roxanne Bradley
Reading time: 2 minutes

This article is 6 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Following on from the previous legal update in March, from the 1st of April 2016 the new National Living wage is in place therefore from this date you will need to pay all employees aged 25 and over £7.20 per hour.

25+                 £7.20
20 – 21             £6.70
18 – 20             £5.30
16 – 17             £3.87
Apprentices      £3.30

We will see a further increase to the current minimums for other age brackets however this will be from October 2016.

If you fail to pay employees the above minimum per hour then your employee can bring a claim for unlawful deductions and it is a criminal offence!

It’s also key to remember HM Revenue and Customer officers do have the right to carry out checks and request to see payment records. If they find a employee has not been paid the correct rates, then any arrears have to be paid immediately as well as a fine and the possibility of your company being named by the government.

As an employer, it is your responsibility to keep all records to show that you are meeting the requirements of the minimum wage and these should be kept for atleast three years.

The Department for Innovation and Skills have produced the below booklet to help employers to calculate the minimum wage and what falls into the category of being counted and what hours should be counted.

Roxanne Bradley

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.