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December 22, 2015

Legal Issues – Forthcoming Changes

Regular readers will be aware that the Government has proposed changes to the National Minimum Wage (NMW) by introduction of the National Living Wage (NLW) and continue to develop the law relating to zero hours contracts and their potential abuse.

National Minimum Wage 

The draft National Minimum Wage (Amendment) Regulations 2016 will come into force on 1 April 2016.  These give effect to the proposal to introduce a NLW rate of £7.20 an hour for workers aged 25 and over.

In addition to the introduction of the new rate, from 1 April 2016 the financial penalty for employers found to have underpaid workers in respect of NMW will increase from 100% to 200% of the underpayment due to each worker.

Zero Hours Contracts

Since May 2015, exclusivity clauses in zero hours contracts have been unenforceable meaning that an employer cannot engage a worker on a zero hours basis and at the same time insist that they cannot work for another employer.  However, that legislation did not include a remedy for workers with such contracts.  This has now been addressed by the Exclusivity Terms in Zero Hours Contracts (Redress) Regulations 2015 which provide employees with the right not to be unfairly dismissed and employees and workers the right not to suffer a detriment for breaching an exclusivity clause.

If you have any questions on any of the issues raised in the above article, please contact Lyndsey Saunders

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Edinburgh
EH3 8HA