Save Money After the National Minimum Wage Increase!

Written by Jennifer Ormond
5 October, 2018
Disciplinary • October 5, 2018

Save Money After the National Minimum Wage Increase!

Written by Jennifer Ormond

TOP TIPS to save your money after April’s National Minimum Wage increase!

In April 2018 the National Minimum Wage (NMW) increased to:
Over 25: £7.83
21 – 24: £7.38
18 – 20: £5.90
Under 18: £4.20
Apprentice: £3.70

Although there is no permitted way to avoid paying the NMW, the good news is that we can help you to limit lining your employees’ pockets in other ways!


1. Avoid unnecessary process and procedure

Where an employee has less than 24 months service, you can dismiss within that period without spending time on a disciplinary or performance procedure (subject to some exceptions).


2. Notice Loopholes

If a new employee is clearly out of their depth, you can dismiss them before they accrue 1 months service and will avoid having to pay ANY notice pay (as long as your contract adheres to this).

If within the first 24 months of their employment, an employee commits an act of gross misconduct, you can still dismiss them without any process or notice pay and so long as you retain evidence of the gross misconduct offence you will be able to dispute their claim for notice pay.


3. Include a deductions clause in the contract of employment

Ensure that you include a deductions clause in contracts of employment to enable you to deduct money owed to you directly from wages.


4. Ensure that loan agreements are properly signed

Prior to loaning money or paying for an employee to attend a training course, ensure that they sign a loan agreement to repay the money if they leave within 12 months.


5. Limit sick pay

Limit sick pay for your lower level employees to Statutory Sick Pay only.


7. Manage issues quickly

Deal with under-performance or misconduct as soon as possible and avoid letting problems worsen. The longer you leave it, the more complicated (and expensive) it is likely to become!

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