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The National Living Wage – comes into operation 1/4/16

The Government has just launched more detailed guidance material on paying the National Living Wage and it can be found here https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/511151/BIS-16-144-nmw-calculating-the-national-minimum-wage.pdf

Locally NI Business Info have some material that users may find useful here  https://www.nibusinessinfo.co.uk/content/national-minimum-wage-acas-helpline

The basic principle is straightforward - The National Living Wage applies to workers aged 25 and over from 1 April 2016. This new rate of pay was introduced through amendment to the National Minimum Wage Regulations 2015 http://www.legislation.gov.uk/uksi/2016/68/made  to ensure that the rules that apply to the National Minimum Wage rates for workers aged under 25 also apply to workers entitled to the National Living Wage.

The new guidance goes into detail about paying the National Living Wage and addresses the following issues page by page

Section 1: Eligibility for the minimum wage ............................................................................... 5

Apprentices ................................................................................................................................. 5

Seafarers .................................................................................................................................... 6

Work experience ......................................................................................................................... 6

Volunteers and voluntary workers ............................................................................................... 7

Family member exemption ........................................................................................................ 14

Section 2: Calculating the minimum wage ................................................................................ 16

Pay counted during a pay reference period for minimum wage purposes .................................. 16

Allocating annual bonuses ........................................................................................................ 16

Allocating pay based on timesheets .......................................................................................... 17

What counts as pay for minimum wage purposes ..................................................................... 18

What does not count as pay for minimum wage purposes ......................................................... 18

Deductions from pay and payments by workers that reduce minimum wage pay ...................... 23

Deductions from pay and payments by workers that do not reduce minimum wage pay ........... 24

Benefits in kind and accommodation ......................................................................................... 25

Section 3: Working hours for which the minimum wage must be paid ................................... 30

Summary .................................................................................................................................. 30

Sleeping between duties ........................................................................................................... 31

Time spent travelling on business ............................................................................................. 32

Time work ................................................................................................................................. 32

Output work ............................................................................................................................... 34

Salaried-hours work .................................................................................................................. 38

Unmeasured work ..................................................................................................................... 47

Section 4: Enforcing the minimum wage .................................................................................. 49

Minimum wage complaints ........................................................................................................ 49

Enforcement by HM Revenue & Customs ................................................................................. 49

Notice of underpayment ............................................................................................................ 50

Criminal offences ...................................................................................................................... 50

Employment tribunal claims ...................................................................................................... 51

Unfair dismissal and the minimum wage ................................................................................... 51

Calculating minimum wage arrears ........................................................................................... 51

Calculating arrears with the change of age band ....................................................................... 52

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