The reform aims to ensure employees can continue to access benefits without businesses risking non-compliance.
How will this reform affect your business?
Under the changes, the government will amend NMW regulations to allow salaried hours workers to be paid in additional pay periods such as fortnightly or four-weekly.
Retailers and their workforce will massively benefit from this change as annualised hours arrangements are very popular in the industry.
Payment practices of contracted employees in regular instalments, with fixed yearly working hours, helps workers to budget. This gives them financial stability and prevents underpayment over the year.
Premium payments to salaried hours workers in respect of basic hours will also be allowed and will not form part of the workers’ remuneration for calculating NMW pay. Simplifying NMW regulations to improve compliance has been a long-standing call from the CBI and its members.
The government also announced that it will waive financial penalties for employers for breaches of rules relating to salary sacrifice and pay deductions, subject to eligibility criteria.
Under these c
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