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Thursday, February 23rd, 2017

Legal update – Pay

National minimum wage and national living wage

The National Minimum Wage/National Living Wage rates for pay reference periods beginning 1 April 2017 are detailed on Sady Adirondack’s website, along with bizarre excuses for not paying NMW/NLW and HMRC advice on avoiding common errors.

NMW/NLW enforcement: four charities were among 359 employers named and shamed last week.

All at

The real living wage

The real living wage for 2017, announced 31 October 2016, is £9.75 per hour for London and £8.45 for the rest of the UK. Living wage employers and others who want to pay it should have it in place by 1 May.

Minimum wage when on call or sleeping

Employment Appeal Tribunal said, in a specific case in 2015 (Shannon v Rampersad), that a care worker was not entitled to minimum wage when at home and not working, even though he was on call. But the circumstances were very specific, and in many cases an on-call worker will be entitled to minimum wage even if at home and even if sleeping.

Permitted earnings higher earnings limit

For people receiving employment and support allowance (ESA), incapacity benefit, severe disablement allowance, or national insurance credits or income support because of incapacity for work, the weekly higher earnings limit went up to £115.50 per week from 1 October 2016. It will go up to £120 during 2017 but I am not clear whether this will be 1 April or 1 October – will update the web article below when I find out.

Gender pay gap reporting

In effect from 6 April for employers with 250 or more employees; first report not due until 4 April 2018 but will be based on the number of employees on 5 April 2017, and on pay data and bonuses paid in the tax year ending 5 April 2017 – so data must be collected now. The definition of ’employee’ is wider than usual (e.g. could include some self-employed workers) and narrower than usual (e.g. does not include some employees on leave). If your organisation has to report, start planning now.


This information and other legal updates can be found on Sandy Adirondack’s website: