If you’re employing personal trainers or any staff in your business, then hopefully you’ll have heard of the UK’s National Living Wage that came into force on the 1st of April. If you haven’t, read on as you could face serious penalties if you’re not sticking to the rules…
The National Living Wage (NLW) of £7.20/hour is a compulsory minimum wage for employees who are at least 25 years old and will be reviewed in April each year. For workers under 25, the National Minimum Wage still applies.
If you haven’t already, the Govt recommends you follow these four steps:
- Check you know who is eligible in your business. Find out on GOV.UK’s employment status
- Take the appropriate payroll action. Find useful guidance in HMRC’s
- Let your staff know about their new pay rate.
- Check your staff under 25 are earning at least the right rate of National Minimum Wage.
The penalties for not paying can be severe. HMRC have set up a new enforcement team to prosecute employers who don’t pay their employees the new rate. If caught, you’ll be liable to pay 200% of the money owed, up to a maximum of £20,000 per worker. Employers can also be banned from being company directors for up to 15 years.