Are You Ready For The Living Wage – 1st April 2016?
On the 8th July 2015, the Chancellor announced in the summer Budget that a new National Living Wage (NLW) will come into effect from April 2016. The set mandatory rate will be £7.20 per hour for all workers aged 25 and over. The national minimum wage will continue to apply for workers aged 24 and under.
In April the Government’s new National Living Wage will become law. The Government is committed to increasing this every year.
As an employer, you’ll need to make sure you’re paying your staff correctly from 1st April 2016, as the National Living Wage will be enforced as strongly as the current National Minimum Wage.
Employers need to take care not to fall foul of discrimination legislation by favouring younger workers to avoid paying the NLW rate. As reported in the SEPTEMBER/OCTOBER 2015 LEGAL BULLETIN age is a protected characteristic under the Equality Act 2010 and refusing to employ someone or provide services as a recruiter could give rise to unlawful discrimination.
While both direct and indirect age discrimination can be objectively justified where the less favourable treatment is a proportionate means of achieving a legitimate aim, case law has illustrated that an employer’s desire to reduce cost will not on its own be enough to justify any discrimination.
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If we can be of assistance to you, please don’t hesitate to contact us.
The RSE Group Ltd.