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Employment Law Update: National Living Wage to be added to NMW Regulations

On 1 April 2016 the draft National Minimum Wage (Amendment) Regulations 2016 which have been laid before Parliament and will come into force.

They amend Regulation 4 of the National Minimum Wage Regulations 2015 to add the National Living Wage (NLW) rate of £7.20 an hour for workers aged 25 and over and move the remaining national minimum wage (NMW) rates (for those under 25) to a new Regulation 4A. In the July 2015 Budget, the government announced that it would introduce the NLW at a premium of 50 pence above the NMW rate, to take effect from April 2016.

Regulation 2 amends the National Minimum Wage Act 1998 by increasing the financial penalty payable by employers who underpay the NMW from 100% to 200% of the underpayment due to each worker.

Lodders’ employment solicitors offer accurate, focused and solution-based legal advice from our offices in Stratford upon Avon and Cheltenham to a wide range of clients, who require assistance with the complexities of employment law. For help or advice please contact Nick Rowe on 01242 229096 or drop him an email.

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