An employer must ensure that all employees are provided with written pay statements showing:
The National Minimum Wage (NMW) is a legal right which covers almost all workers above compulsory school leaving age.
There are different NMW rates for different age groups. There is also a different rate for apprentices who are either under 19 or in the first year of their apprenticeship.
The rates change every year in April. See GOV.UK for the current rates.
Failing to pay the NMW is a criminal offence. Dismissing a worker because they become eligible or complain about not being paid it is unfair dismissal.
You may be required to prove that you are paying the NMW and this means that you must keep sufficient records and allow access to them if required.
An employer who provides accommodation to an employee is allowed to count an amount, known as the accommodation offset, towards their NMW pay, even if it is being provided free of charge. See GOV.UK for the current accommodation offset rate.
Note: New rules regarding tips are expected to be in force from May 2024. They will apply to employees and workers (including agency staff and zero-hours workers). Employers must:
See Calculating the minimum wage, for more information.
In some cases employees who are laid off may be entitled to payment. A lay off is not the same as a redundancy and the regulations covering each situation are very different. Advice should be sought to ensure the correct payments are made.