Monday 8 January 2024

Minimum Entitlements and Pay Rates for 2023-24

Original article by Saeidul Haque, Associate, LegalVision.

As an employer, there are key employment law considerations to note and comply with. Importantly, your employees and workers will have different minimum entitlements and pay rates according to employment law in England and Wales (statutory rates of pay). The statutory rates of pay change every year in April and are relevant to all employers and employees alike. It is important to correctly pay your staff or risk breaking your legal obligations as an employer. This article outlines the national minimum wage in England and Wales and other minimum entitlements.   

National Minimum Wage

The National Minimum Wage is payable to all employees and workers.

Real Living Wage

The Real Living Wage is the only wage rate in the UK that is based on real living costs.

It is voluntary to pay your employees according to the real living wage. Businesses can choose to provide financial remuneration that is above the National Minimum Wage/National Living Wage implemented by the Government. 

Sick Pay

To be eligible for statutory sick pay, an individual must:

  • be an employee and have done some work for you (as their employer);
  • earn at least the lower earnings limit (per week)
  • have been ill for at least 4 days in a row (including non-working days).

Bank Holidays 2024 (England and Wales)

All employees and workers are legally entitled to a minimum of 28 days paid holiday a year, which is often referred to as annual leave. An employer can include bank holidays as part of this entitlement, but this is not mandatory. You would need to give a pro-rata equivalent to staff who work part-time. Additionally, you can offer more leave than the legal minimum.

The right to paid holidays applies to agency workers, casual workers and employees. 

Family Friendly Payments

Other Family Friendly Payments

Typically, family friendly payments and other family friendly payments are only payable to employees. However, the definition of ‘employee’ for these payments is wider than the standard definition in the Employment Rights Act 1996. Therefore, those with worker status may be eligible.

Key Takeaways

Understanding the legal entitlements of your employees and workers is crucial. If you fail to do so, you risk underpaying your staff and opening yourself to legal consequences. Some minimum entitlements you must provide to your employees and workers include:

  • paying them according to the National Minimum Wage (or Real Living Wage if you elect to do so);
  • providing sick pay;
  • providing paid holidays; and
  • complying with family friendly payments.

For more information on the minimum entitlements you must comply with as an employer, our experienced employment lawyers can assist you as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to solicitors to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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