As April approaches, businesses and employees alike must brace themselves for the latest updates to employment laws in the UK. These changes can have significant implications for how businesses operate and how individuals are protected in the workplace. In this blog, we’ll delve into the key amendments and new regulations set to come into effect, ensuring that you’re well-informed and prepared for the evolving landscape of employment law.
National Minimum Wage and Living Wage Increase
From 1st April, one of the most anticipated changes is the annual increase in the National Minimum Wage (NMW) and National Living Wage (NLW). This blog post aims to simplify and clarify the key provisions of these regulations to help businesses and employees navigate this new aspect of employment law.
Who is entitled to receive National Minimum or National Living Wage?
Workers who have reached the age to leave school are eligible for the National Living Wage, with detailed criteria available on the governments website. However, exceptions exist for apprentices under 19 years old or those 19 and over in their first year of apprenticeship, who are entitled to the NMW. Individuals excluded from receiving NMW include:
- Directors
- Volunteers
- Individuals below the school age, higher education and further education students engaged in work experience or placements lasting up to one year
Complete list of exclusions can be found here.
National Minimum Wage and Living Wage Rates
| Current Rates These rates are for the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change on 1 April every year. | |||||
| April 2023 (current rate) | 23 & over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
| £10.42 | £10.18 | £7.49 | £5.28 | £5.28 | |
| From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage. | |||||
| April 2024 (new rate) | 21 & over | 18 to 20 | Under 18 | Apprentice | |
| £11.44 | £8.60 | £6.40 | £6.40 | ||
What does this mean for SME’s?
Firstly, businesses should check individual rates of pay to determine whether they are below the new statutory minimums, and then increase rates to match legislation. You can find detailed information on NMW and NLW here. Maintaining clear and transparent communication with your employee’s is essential to explain the changes and reasons behind them. This will help employees understand that these adjustments are not arbitrary decisions made by the company but are mandated by law.
Next, notify your payroll team/provider of any employees affected by the change to ensure they are paid correctly.
Questions to consider:
- Does your company regularly review and update your payroll systems to reflect changes in NMW and NLW rates, ensuring accurate payment to employees throughout the year?
- Does your company maintain detailed records of working hours and payments made to employees, including any deductions or allowances, to demonstrate compliance with NMW and NLW regulations?
- Has your company conducted internal audits or assessments to evaluate your compliance with NMW and NLW regulations, identifying any areas for improvement and taking corrective actions as necessary?
- Does your company have appropriate policies and procedures in place to address any disputes or complaints related to NMW and NLW, and do you handle such issues promptly and transparently.
In conclusion, the April 2024 employment law changes in the UK signal a significant shift towards greater protection for workers and increased flexibility in the workplace. Businesses must stay abreast of these developments to ensure compliance and to foster a positive and inclusive work environment. By understanding and adapting to these changes, businesses can navigate the evolving legal landscape while prioritising the well-being and rights of their employees.
