David wright advises on the national minimum wage

The national minimum wage (NMW) is usually increased each October, and many salons have moved their pay review date to coincide with it. 

The rates for October 2010 were announced in the budget earlier this year and, while there were some significant changes, they have received little media coverage.

If you have a question on the NMW or any other employment issue, contact me via the HJi Expert Panel.

Read on to see the answers to some of your most pressing questions on the subject.

Here are some of your questions on the subject of 

the NMW.

Q: What are the new NMW rates?

A: From October 2010 they will be as follows:

 The adult wage will rise from £5.80 to £5.93.

 The wage for 18- to 20-year-olds will rise from £4.83 to £4.92.

 The wage for 16- to 17-year-olds will rise from £3.57 to £3.64.

 A significant change is that the adult wage is now payable at the age of 21 and not 22.

Q: Has anything changed with regard to apprentices?

A: Yes, an apprentice minimum wage of £2.50 per hour has been introduced. Based upon a 40-hour week, the minimum rises to £100 per week from £95. The maximum working week is 40 hours for staff under 18- years-old.

Q: Does the NMW actually get policed?

A:  Yes, there has been a steady increase in employees taking their cases to Employment Tribunal.

In addition, HM Revenue and Customs (HMRC) is inspecting employers. 

In Manchester earlier this year it brought a criminal conviction against an employer paying 40% below the minimum wage. He was ordered to pay the shortfall to staff and was heavily fined. 

The employer has also allegedly falsified pay records to cloak his actions. He appeared in court in June and was fined £3,696. This wasn't an Employment Tribunal, but a criminal conviction promoted by HMRC.

Q: My staff work on commission only; how does the minimum wage affect them?

A:  The minimum wage applies to all employees (except apprentices). Your employees no doubt work a fixed number of hours each week and are entitled to receive the minimum wage for the total number of hours worked. If their commission earnings were less than the equivalent minimum wage, you would have to supplement it to make up any shortfall. 

Q: I have been approached for a job by a former apprentice. She still has some skills shortfalls and recognises this. In the circumstances, she has offered to work for a trial £4 per hour. As this was her suggestion, is it reasonable?

A: While I understand her eagerness to obtain employment and complete her training, it is your responsibility to pay the minimum wage. You could be inspected by HMRC or she can, at any time, make a successful claim against you. You would face a fine and have to give her the pay shortfall. An option would be to employ her and pay the minimum wage, but employ her for fewer hours.

Q: I am employed as a receptionist in a salon, but I have just been given two weeks' notice to coincide with my 21st birthday. The reason they have given is that they can't afford to pay me the minimum wage. Is this legal?

A: The minimum wage being payable at 21 will impact on salons. However, this is not a fair reason for dismissal and would automatically be unfair if it was considered by Employment Tribunal. 

You should have been given a right of appeal, which you should do immediately, and suggest that your employer obtains some professional advice regarding their decision.