Minimum wage and leave entitlement both increase

On 1 October 2007 increases to both the national minimum wage and statutory annual leave entitlement came into effect.

Minimum wage

The new rate for adult workers (aged 22 and over) is now £5.52 per hour. Anyone working for you (including part-time and casual staff) is entitled to receive the minimum wage, except for those who are genuinely self-employed, apprentices under age of 19 and apprentices over 19 in their first year, voluntary workers and workers based permanently outside the UK or who are based in the Channel Islands for the Isle of Man.

For details on all the new minimum wage rates see under Staff in the Legislation Guidance section.

Statutory annual leave entitlement

On 1 October 2007, new legislation came in which amends the Working Time Regulations to increase the statutory annual leave entitlement from 20 to 24 days per annum for full-time employees.

This is the first part of a two-stage process aimed at preventing employees counting public holidays as part of an employee’s annual leave entitlement. The second stage of the process will come into effect on 1 April 2009 and will further increase the statutory entitlement for full-time employees from 24 to 28 days (inclusive of statutory holidays). For part-time employees, leave is calculated on a pro-rata basis.

To assist you in determining your employees’ new statutory annual leave entitlements, Business Link have developed an online calculator under the Employing People section of their website, www.businesslink.gov.uk .