Employment Law Update (March 2009)

National Minimum Wage Rate changes delay may help employers

Employers will have to wait longer to hear about the new national minimum wage (NMW) rates that will apply from the 1^st of October.  The new rates will not now be announced until after May the 1^st.  New NMW rates are normally announced in March each year.

However, the delay may not be bad news for employers. The body that advises the government on setting the NMW, the Low Pay Commission, asked the government for an extension of time to allow it to consider more up-to-date data on the economy, in the light of rapidly changing circumstances.

By asking for the extension of time, the Low Pay Commission is clearly indicating that it will take into account the effect of the recession on employers when it makes its recommendations. However, the date when the next up rating of the NMW will take effect remains set for October 1^st 2009.