Following the recommendations of the Low Pay Commission, the government will increase the national minimum wage from April 2018 to the following rates:
Apprentices: £3.70 an hour;
16-17 year olds: £4.20 an hour;
18-20 year olds: £5.90 an hour;
21-24 year olds: £7.38 an hour.
The national living wage for those aged 25 and over will also increase from £7.50 an hour to £7.83 an hour from April 2018. This is a 4.4% increase and employers will need to factor this into any pay adjustments to be made next year.
The Taylor Review which has been reviewing modern working practices has been looking at worker status. In response to this, the Government has issued a discussion paper to look at this in more detail in an attempt to address the discrepancy between the tests applied to satisfy employment rights status and those applied for tax purposes. This, together with recent cases in the gig economy which seek to clarify whether someone is a worker or not, is clearly an area of keen interest and one to watch for those employers who rely on labour which may not be traditionally recognised as ‘employee’.
In the meantime, if you require any advice and guidance regarding these issues, please contact your HR Consultancy team.
Written by Marie-Clare Swallow, Senior HR Consultant