Employment

National Minimum Wage

On 1 October 2010 the regulations regarding the national minimum wage changed. New rates are now being applied and new age bands are also applicable.

Rates from 1 October 2010

• The main adult rate has historically been for all workers of the age of 22 or older. This has been amended and all workers who are 21 or over are now entitled to the full adult rate. On the 1 October 2010 this rate rose to £5.93 per hour.
• The development rate that was previously for 18-21 years olds is now for 18-20 year olds and has risen to £4.92 per hour.
• The development rate for 16-17 years olds was raised to £3.64 per hour on 1 October 2010.

A new minimum wage of £2.50 per hour was introduced on 1 October 2010 for apprentices who are either under 19 or in the first year of their apprenticeship.

Employers in the tourism sector should be aware that since 1 October 2009 any service charges, tips, gratuities and/or cover charges that staff receive do not count towards the national wage wages. All of these payments, regardless of how they are collected and distributed to staff, must be paid on top of the relevant national minimum wage above.

Staff accommodation

If you provide accommodation for your staff you are entitled to offset some of the cost of that against the national minimum wage. The daily rate of offset is £4.51 (£31.57 per week).

Annual Leave Entitlement

Annual Leave Entitlement remains unchanged at 28 days per annum for full time staff and the equivalent pro rata for part time and casual staff.

Business Link provides this useful tool for calculating your employees annual leave entitlement

Ensuring that you are compliant.

All employers in the tourism sector need to ensure that they are complying with these regulations. In particular we urge employers to be aware of the changes in national minimum wage regulations that take effect on 1 October 2010 with regard to the changing age bands. All employees who are 21 are now entitled to the main rate of £5.93 per hour.

Further information

More information on employment rights can be found on the direct gov website

The National Minimum Wage Helpline on 0845 6000 678 gives free confidential advice on the minimum wage and any problems you may have.