Today, Business Minister Kelly Tolhurst MP will announce changes to the way minimum wage law is enforced to grant greater flexibility to both employees and employers.
Previously, employee benefits such as premium payments for weekends and over-time working could conflict with new minimum wage enforcement and result in fines for firms. This meant some employers were forced to remove employee benefits to avoid falling foul of the law. This issue has now been remedied.
Other changes include allowing employers to calculate the frequency of their payroll to include fortnightly and four-weekly payment schedules. Furthermore, employers will now have the ability to determine their own calendar year for calculation purposes.
Thanks to lobbying by the British Retail Consortium and subsequent action by BEIS, employers and employees will have greater flexibility in the way they pay and receive minimum wage.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, “We are very pleased to see that the Government has committed to making NMW regulations fit for the modern workplace. Responsible retailers do everything that is necessary in order remain compliant, and they will welcome the Government’s simplification of the regulations.
'Retailers can now streamline their systems to maintain and reinstate employee benefits without the threat of future non-compliance under restrictive legislation.'
Dickinson continued, “We welcome the announcement from Kelly Tolhurst MP that will allow retailers to provide additional flexibility and benefits for their employees without the risk of punishment. This includes allowing premium payments for weekend work and greater choice over the pay cycles to allow for fortnightly or four-weekly payments.
'Retail offers unparalleled flexibility in hours, enabling individuals to remain in work whilst managing other priorities such as studying or caring. We hope the Government will continue to update pay regulations to reflect the needs of modern retail workers.'