No Result
View All Result
Benefits Expert
  • About
  • Advertise
  • Alerts
  • Events
  • Contact
  • NEWS
  • IN DEPTH
  • PROFILE
  • PENSIONS
  • GLOBAL REWARDS
  • FINANCIAL BENEFITS
  • HEALTH & WELLBEING
  • DIVERSITY & INCLUSION
  • PODCAST
No Result
View All Result
Benefits Expert
  • NEWS
  • IN DEPTH
  • PROFILE
  • PENSIONS
  • GLOBAL REWARDS
  • FINANCIAL BENEFITS
  • HEALTH & WELLBEING
  • DIVERSITY & INCLUSION
  • PODCAST

Minimum wage: employers face £20k fines for non-compliance

by Benefits Expert
10/02/2025
Minimum wage, fines, law
Share on LinkedInShare on Twitter

As the deadline for rises in the national minimum wage approaches, an employment lawyer has warned employers that the “penalties for non-compliance are severe” with fines of up to £20,000. 

From 1 April 2025, workers aged 21 and over will receive £12.21 per hour under the national living wage, and younger workers (aged 18-20 years old) will see their minimum wage rise to £10.00 per hour, an increase of £1.40. 

Daniel McAfee, head of legal operations at Lawhive and a UK lawyer, said the changes will have a substantial impact on take-home pay, with full-time workers potentially seeing an additional £1,400-£2,500 annually depending on their age.

Part-time and zero-hours workers are entitled to new minimum wage rates, regardless of their working pattern, he added.

“The law is absolutely clear on this point – all workers, regardless of their working pattern, are entitled to these new rates. This includes part-time workers, zero-hours contracts, and those with irregular hours.”

An employee’s right to the minimum wage is based on their worker status, not their working pattern. “Employers cannot avoid these rates by changing contract types or reducing hours without proper consultation,” he said.

McAfee added that these wage increases are a significant change for businesses, particularly those employing younger workers. 

“Employers must conduct a thorough review of their payroll systems and employment contracts to ensure compliance. This isn’t just about changing hourly rates – it affects overtime calculations, salary sacrifices, and benefit structures. We recommend starting preparations well in advance of April 2025.

“While these increases represent a significant cost for businesses, they’re also likely to boost consumer spending and may improve worker retention and productivity. Companies should consider how to absorb these costs while maintaining competitiveness.

RELATED POSTS

DWP, government, reforms, pensions, work, employment, benefits, rewards, retirement, savings, legislation

Pensions Bill brings ‘blockbuster’ reforms, but leaves out auto-enrolment fix

Serious illness, cardiac, health, hospital, wellbeing, sick

Surge in demand for helpline services following serious illness diagnosis

“This might involve reviewing pricing strategies, improving efficiency, or investing in automation.

“Looking ahead, businesses should prepare for continued wage increases and enhanced worker rights.”

He warned employers that non-compliance could be costly.

“The legal obligations for employers are stringent. You must not only pay the correct rates but also maintain accurate records of all payments and working hours. This includes travel time, training, and overtime where applicable.

!The penalties for non-compliance are severe – fines of up to £20,000 per worker, public naming by HMRC, and potential criminal prosecution for serious breaches. We’re seeing increasingly robust enforcement from HMRC in this area.”

Next Post
Sexual harassment at work

Workplace sexual harassment reports soar after new law comes in 

Map of Europe and Britain, pay

UK leads Europe on pay transparency, job adverts show 

SUMMIT

BENEFITS UNBOXED PODCAST

Benefits Unboxed
Benefits Unboxed

The podcast from Benefits Expert, the title for HR, reward and benefits professionals.

Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

The regulars are Claire Churchard, editor of Benefits Expert; Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, consultant and rewards & benefits veteran.

Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
byBenefits Expert from Definite Article Media

As the professionals responsible for helping their organisations navigate NI hikes, rising employee stress levels and looming redundancies, the pressure on HR, reward and benefits teams has never been greater. 

HR is expected to lead with strength and compassion. But who is supporting the supporters?

In this episode of Benefits Unboxed, co-hosts Claire Churchard, Carole Goldsmith and Steve Herbert explore the emotional and ethical pressures HR face today, from managing redundancies to implementing complex legislation. They discuss why HR’s own wellbeing may not be the first topic of conversation, the risks that poses to employers, and the practical steps businesses can take to better support the wellbeing of the people who support everyone else.

This conversation shines a light on the resilience of the profession and why looking after HR is not just the right thing to do, but a business imperative.

Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
Benefits Unboxed – Wellbeing: HR is supporting everyone, but who’s supporting HR?
22/05/2025
Benefits Expert from Definite Article Media
Search Results placeholder

GUIDE TO CASH PLANS



CLICK TO REQUEST A FREE COPY

OPINION

Chris Andrew, EVP, Gallagher

Rewriting the deal: how hybrid and remote work is changing EVPs

Pat Sharman, Everyone Matters

What CEOs don’t know about workplace culture, but should

Jo Werker, CEO, Boostworks

Six proactive ways HR can build a happier, healthier workplace

(Left) Simon Fowler, Adviserplus, Empowering People Group, (right) Rena Christou, Halborns

Top 10 employment law reforms every HR team needs to prepare for now

SUBSCRIBE

Benefits Expert

© 2024 Definite Article Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy Policy
  • Terms & Conditions
  • Contact

Follow Benefits Expert

No Result
View All Result
  • News
  • In depth
  • Profile
  • Pensions
  • Global rewards
  • Financial benefits
  • Health & wellbeing
  • Diversity & Inclusion