Will the Minimum Wage affect your
business? - 8/10/04
About two million workers will have received
a pay rise from last Friday as the minimum
wage rises by 35p an hour.
The hourly rate has increased from £4.50
to £4.85 for adults, and from £3.80
to £4.10 for workers aged between
18 and 21. A rate of £3 an hour
will be introduced for 16 and 17-year-olds
as the government aims to "eradicate
poverty".
The Forum of Private Business' chief
executive, Nick Goulding, called the increase
"a shameless piece of electioneering.
It will hit businesses in poorer and remote
areas harder and it will take cash straight
out of employers' pockets, since their
profits are only going up with inflation.”
Remember:
The Inland Revenue Contributions Agency
will enforce the new system. It can
prosecute any companies who fail to
meet their responsibilities.
Employers will be fined £7.20
per worker for every day they fail to
comply with the minimum wage. This can
peak at £5,000.
Workers can report breaches of the
minimum wage anonymously.
Workers have a case for unfair dismissal
if they can prove they were sacked for
protesting about not receiving the correct
wage.
Written By Simon Johnson
Xbridge
Decision Finance
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