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Fri 9th October 2009
Employment Law Update
NATIONAL MINIMUM WAGE INCREASE
From the 1st October 2009 the National Minimum Wage hourly rates have increased. The new rates are as follows:
For adults aged 22 or over the rate has increased from £5.73 to £5.80 an hour;
For adults aged 18-21 the rate has increased from £4.77 to £4.83 an hour; and
For young adults aged 16-17 the rate has increased from £3.53 to £3.57 an hour.
BAN ON USING TIPS AS PART OF THE NATIONAL MINUMUM WAGE
From the 1st October 2009 employers are prohibited from including service charges, tips and gratuities processed through their payrolls towards the payment of the National Minimum Wage.
The Department for Business Innovation and Skills has published a code of best practice on tips which provides guidance to businesses in hospitality, leisure and service sectors on compliance with the new rules.
INCREASE IN THE MAXIMUM LIMIT OF A WEEK'S PAY
From the 1st October 2009 the maximum limit of a week's pay has increased from £350 to £380. This increase will effect all compensation payments where a week's pay limit is relevant such as redundancy payments. This figure will now remain unchanged until February 2011.
If you require any further details on any of the above or any other employment issue please contact a member of the Employment Team on 01234 400000 or email Asad Rana arana@pwhmllp.com Claire Yates cyates@pwhmllp.com or Kiall Bagnell kbagnell@pwhmllp.com


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