29 September 2014
Hairdressers, beauty salons and barber shops are urged to make sure their payroll and payment processes are fully up to speed and ready for this Wednesday’s rise in the national minimum wage.
On Wednesday, 1 October, all the minimum wage rates – adult, age 18-20, under 18 and apprentice – will go up (see table below).
To help salons, the NHBF has put together a free, easy-to-understand guide to national minimum wage rates and what employers should check so they’re sure they meet their obligations: www.nhf.info/nhf-guides
The government is now much more aggressive in fining and “naming and shaming” businesses that fail to pay staff the right rate, even if they’ve made a genuine error. The NHBF urges all salons to spend the next three days making absolutely sure their systems, or their payroll provider, are fully compliant.
Currently businesses that fail to pay the minimum wage can be “named and shamed” and fined £20,000. But the government is pushing legislation through Parliament to make it an even tougher £20,000 per each underpaid worker.
NHBF chief executive Hilary Hall said:
Even if you think you’ve got this sorted, go back and double-check over the next 48 hours that your systems and processes will be compliant when national minimum wage rates change on Wednesday.
For any business, a £20,000 fine is likely to be damaging. But for many small salons a penalty of this size could close your business.
The NHBF is there to help, so please use our guide. But most of all speak to your provider and check your systems. Don’t be caught out by ‘minimum wage Wednesday’.”
National minimum wage rates are due to rise from October 1, 2014, and will be:
The NHBF’s Minimum Wage Advice Guide can be found at:
www.nhf.info/nhf-guides