Background
The National Minimum Wage (“NMW”) legislation is the responsibility of the Department for Business, Energy, Industry and Strategy (“BEIS”). New legislation has just been announced which will result in significant changes that all employers will need to understand and plan for.
What are the changes?
The new legislation changes the definition of a ‘Salaried worker’, making it ‘easier’ in future for workers to meet this definition. Under the new legislation a ‘Salaried worker’ is a worker:
1. Entitled to an annual salary, or an annual salary plus a performance bonus and/or a salary premium ( e.g. shift premium,location premium etc);
2. Entitled to the above in respect of a number of hours in a year (the basic hours);
3. Not entitled to any other payments (other than those outlined in 1) in respect of basic hours; and
4. Paid by reference to a period at least one week long but no longer than a month (e.g. weekly, two weekly, four weekly or monthly payrolls).
