National Living Wage including warning to the unwary employer

National Living Wage including warning to the unwary employer

Few could have missed the introduction of this today.

The new rate for workers of 25 years or older is £7.20.

Workers 24 years or less still qualify for the minimum wage.

There are serious consequences of non compliance. There is a task force set up to police the rates and check up on employers. The awards will be up to 200% of any shortfall as a penalty in addition to paying the shortfall to the worker. In addition to this, a Director of a company not paying the rate can be disqualified for up to 15 years.

Targeted industries for the next few months will be Care, Retail and Hairdressing.

Age Discrimination

Beware that if an employer dismisses someone because they now qualify for the new living wage it is highly likely to be age discrimination, even if the employee does not have two years service.

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