Originally written by Timothy Adler on Small Business
The government has backed down in a row with businesses over the minimum wage.
Businesses that inadvertently push employees below the minimum wage by offering voluntary savings and benefit schemes to staff will no longer be fined.
>See also: Tory minimum wage pledge ‘not realistic’ for businesses, says IoD
The Department for Business, Energy & Industrial Strategy (BEIS) said that companies offering salary sacrifice schemes – where employees exchange part of their pay in return for benefits such as childcare vouchers or other products – technically pushing employees below the minimum wage, would no longer face financial penalties.
Business minister Kelly Tolhurst said: “We want to make it as easy as possible for employers, especially small businesses and those trying to do right by their staff, to comply with National Minimum Wage rules, which is why we’re reforming regulations.”
>See also: Protecting employees from overworking and minimum wage underpayment
Previously, HMRC pursued supermarket Iceland for a tax bill of over £20m after it allowed staff to voluntarily join its Christmas Club savings scheme, which pushed some pay below the minimum wage.
The business department also said it would relaunch its “naming and shaming” of employers who breach minimum wage rules.
Tag Archive for minimum wage underpayment
Hot Business News Today
Tory minimum wage pledge ‘not realistic’ for businesses, says IoD
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The Institute of Directors says that the Government’s pledge to increase the minimum wage to £10.50 an hour by 2025 is divorced from reality.
Tek Parikh, chief economist at the Institute of Directors, told this morning’s Today radio show that the Chancellors’ minimum wage pledge “will certainly concern smaller businesses and retailers”.
Chancellor Sajid Javid announced plans for a compulsory minimum wage to be the highest in the world, extending the rate to all workers aged 21.
The move will affect four million low-paid workers.
See also: Protecting employees from overworking and minimum wage underpayment
Last week, the Labour Party pledged a £10 an hour minimum wage compared with £8.21 an hour currently for workers aged 25 and over.
However, business groups including the Federation of Small Businesses (FSB) and the British Chambers of Commerce (BCC) also raised their eyebrows at yesterday’s announcement.
Parikh said: “The announcement yesterday seems to be a bit unilateral and not in tandem with the reality that many businesses are currently facing.”
The IoD chief economist said that the Government should have consulted with business first, considering business conditions.
“The challenge for businesses now is that this announcement comes at a particularly difficult time for them. Costs
Hot Business News Today
Protecting employees from overworking and minimum wage underpayment
by Ben Lobel • • 0 Comments
Wages in this country have risen at their fastest pace in nearly two-and-a-half years and yet some businesses still pay workers less than the minimum wage. In March, companies such as Wagamama and Shoe Zone were part of a name and shame list published by the Department for Business, Energy and Industrial Strategy, which revealed
The post Protecting employees from overworking and minimum wage underpayment appeared first on Small Business.