Maximum respect needed for new minimum wage says employment law expert
23 September 2004
A LANCASHIRE employment lawyer is warning businesses to adhere to the new minimum wage or face employment tribunals from disgruntled workers.
The national minimum wage is increasing by nearly 8% on 1 October, as the government aims to provide employees with decent minimum standards and fairness in the workplace.
Sadiq Vohra, employment lawyer at Preston-based MWR Solicitors, says businesses will have to comply with the law or brace themselves for potential legal action.
“The new minimum wage is another step in the direction of providing a fairer and more equal workplace. The government have raised the minimum wage for over-21s from £4.50 per hour to £4.85, for 18 to 21-year-olds it will go up to £4.10 from £3.80, and 16 and 17-year-olds will now get £3.
“In terms of the pay itself, incentives, bonuses and performance-related pay all count to your wage, but regional allowances, which are not included in your basic pay, and overtime shifts do not count.
“Additionally benefits such as uniforms, meals, or private health insurance do not count – only accommodation in kind applies.”
Mr Vohra says if an employee thinks they are being paid less than the new minimum wage, they should take action immediately.
“Provided an employee is entitled to the national minimum wage, an employer cannot make workers accept a lower pay packet, even if an employee has signed a contract agreeing a lower rate of pay as this will be legally void.
“However, if an employee feels they are being paid less than the national minimum wage, then they can demand to see their employment records. By making a written request to view the records, an employer by law must supply the information within 14 days.
“If an employer refuses access, an employee can submit a complaint with an employment tribunal. If the employer refuses to pay at least the minimum wage, then an employee can lodge a complaint with an independent enforcement agency.
“It is important that employees know their rights on this and that employers are not tempted to overlook the new wage, as legal action is possible with heavy costs to incur to both finances and reputation.”
