In the UK most workers have the legal right to a National Minimum level of pay, which is set out by the government each year. This means that employers must ensure that all qualifying employees are receiving on, or above this minimum wage level, to avoid any legal disputes. In cases of suspected wage under payment, National Minimum Wage Officers will investigate the case and can take legal action to force employers to pay the right hourly wage, and also pay any backdated wages.

If you have employed workers for a long time under the wrong wage levels this could be a significant amount of money. For example if you had underpaid two employees by just £2 an hour for a year (on a 37hr week), then this could cost you over £7,000 to repay, plus any legal charges in the process of sorting out your case.

There is a National Minimum Wage Helpline on 0845 6000 678 if you are unsure exactly who qualifies for minimum wage, but basically, with a few exceptions, most UK citizens over the age of 16 are legally entitled to the following rates:

• Adults (aged 22 and over) – £5.73 an hour
• Young Adults (aged 18-21) – £4.77 an hour
• School leavers (aged 16-18) – £3.53 an hour

The main exceptions include:

1. Self employed workers
2. Agricultural workers, as they have their own payment system set up by the Agricultural Wages Board
3. Certain apprentices under the age of 19 years old
4. Voluntary workers

You will need to consider the costs of the National Minimum Wage when you are employing new workers. At £5.73 an hour even a basic worker on a standard 37hr week is earning just over £10,000 a year, which is a lot of money to a small business. Think about the type of business you own, and whether you can minimise the number of staff you employ without compromising overall efficiency. Utilise every member of staff to their full potential, and make sure the workload is spread evenly.

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