The Minimum Wage – how does it affect you?

I thought I should add a little more on this topic mainly about apprenticeships and also the penalties that employers can hit with by HMRC should the Employment Legislation Act 2008 not be complied with. There is no National Minimum Wage for apprentices aged 19 years old or above for the first 12 months of their apprenticeship. After 12 months the minimum wage should apply according to their age. The National Minimum Wage does not apply to apprentices under the age of 19 years old; instead a £95 weekly developmental rate is implemented. Under the Employment Act 2008 employers face a penalty if HM Revenue & Customs discover they have failed to pay the National Minimum Wage. The penalty is set at 50 per cent of the total underpayment (for periods starting on or after 6 April 2009). The minimum penalty is £100 and can rise to a maximum penalty of £5,000. Employers who comply fully within 14 days of service of a 'notice of underpayment' will receive a discount of 50 per cent on the penalty. In addition, workers will be entitled to have arrears of wages repaid at current rates.