1. All workers are covered by the Act, and no employer is exempt from paying the minimum wage.

2. Make sure you are aware of the current rates of pay and any changes that are introduced.

3. There are a few exemptions- so check to see if these apply to any of your employees.

4. Some workers on accredited training course may be paid a different rate when starting a new job. When taking on a new member of staff, check to see if this will apply.

5. Be aware that even if you can persuade an employee to accept to be paid less than minimum wage, it is illegal to do so.

6. Make sure that you are only including elements which count towards the minimum wage- tips direct to staff from customers, meals and luncheon vouchers amongst other things, do not count.

7. Ensure that you are keeping sufficient records so that you can prove you have paid your employees the minimum wage, and these records are kept for 3 years and can be produced on request.

8. Keep records of when new higher rates of payment will apply to employees when they reach their 22nd birthday.

Do's and Don'ts:

Do:

Contact the Inland Revenue if you have any concerns. Ignorance is no defence.

Display details of the national minimum wage prominently in the workplace.

Don'ts:

Be tempted to include elements which do not count towards the minimum wage.

Try and get away with paying less than the minimum wage. It is a criminal offence and penalties will be imposed.

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Information supplied by Business Insight
Central Library, Chamberlain Square, Birmingham. B3 3HQ
Tel: 0121 303 4531 Email: business.library@birmingham.gov.uk
www. birmingham.gov.uk/businessinsight
www.bestforbusiness.com
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