Confusion leads to flouting of the national minimum wage

Is red tape really such a problem that salon owners get into such a state of confusion, they accidentally pay employees the wrong wage, ask HJ News Editor Matthew Batham?

According to the National Hairdressers' Federation, over-complexity of legislation surrounding the national minimum wage was likely to be the reason behind any salons underpaying - not flagrant breach of the law.

The National Hairdressers' Federation has warned the UK government to exercise "great care" when deciding whether to implement a Scottish Affairs Committee recommendation to name and shame firms that breach national minimum wage (NMW) legislation north of the border. The Scottish Affairs Committee has recommended the government expose employers even where non-compliance has been averted.

Eileen Lawson, NHF secretary general, said a hairdressing salon was only as good as its reputation, so any decision on naming and shaming a business where non-compliance resulted from accidental breach would be hugely damaging. "Accidental breach is what it says on the tin, and the emphasis should be on education not punishment," she said.

Lawson said the NHF was unaware of any of its own members incurring a penalty for non-compliance although several had difficulty interpreting the law and had asked for advice. 

Scrap Business Rates

The NMW isn't the only legislation under scrutiny. One salon owner, so disgruntled at the size of the business rates bill for her new Suffolk business has started a petition. Paula Mason, of Lawrence Paul Salons is asking the government to make new businesses exempt from business rates for the first 12 months of trading.

You can register your support at the number 10 Downing Street website - and start your own petition against whatever red tape is getting your goat.

Bright Side to Business

Looking on the bright side, despite the red tape burden - and the recession - an increasing number of small businesses are optimistic about the future. Three quarters of small businesses believe the economy will see an upturn in 2010, according to research from BT Business, with 35% predicting an improvement by January 2010.