A leading contract cleaning company has welcomed the introduction of the new national living wage (NLW).
In the 8 July Budget, Chancellor George Osborne announced that the NLW would be introduced for workers aged 25 and above in April 2016. It is planned that it will rise to above £9 by 2020.
Where clients of Nviro, which operates in London and the South East, are committed to the unofficial living wage, set by the Living Wage Foundation, workers on these contracts receive £7.85 per hour and £9.15 an hour in London.
Nviro managing director Brian Warren told Tomorrow’s Cleaning on 20 July that the Budget announcement should encourage businesses to pay greater attention to workers’ wages, adding: “There is a strong business case, as well as an ethical one, for paying a living wage. We attract better recruits, reduce costly labour turnover and have a more motivated, engaged and effective workforce.”
“There is a strong business case, as well as an ethical one, for paying a living wage. We attract better recruits, reduce costly labour turnover and have a more motivated, engaged and effective workforce.”
“I hope this fresh national focus on workers’ wages will spread fair employment terms and professionalism even more widely.”
But he warned that the new NLW was still below the majority of the market rates in the regions where Nviro operates and that funding cuts could force some public sector clients to reduce service levels or seek efficiencies, leading to job losses.
Employers will be legally required to pay the NLW from April 2016, in the same way as they must pay the national minimum wage (NMW). More than 200 employers have already been “named and shamed” for non-payment of the NMW under a regime that also requires payment of money due to workers and of penalties. Non-compliant employers also run the risk of a criminal prosecution.
Paying the living wage is voluntary but compliance with NMW rates is a statutory obligation on employers, who face tough penalties and the prospect of being “named and shamed” if they fail to meet their responsibilities.
Regular changes to employment law can make it challenging for business owners and manager to stay on top of their legal responsibilities. At Palmers, we can advise on all aspects of employment law, including those relating to the national minimum wage, the national living wage and other statutory payments. Our HR package also offers regularly updated sample policies for these issues.
For more information and guidance, please contact our employment law specialists Lara Murray.