Settlement Agreements and the National Minimum Wage

Are you aware of the current NMW rates? Do you know your rights?

With a General Election due in Spring 2015, one of the areas for debate between the parties is likely to be the level of the National Minimum Wage (NMW). Chancellor George Osborne has recently indicated that he believes that the economy has improved enough to see a more significant rise in the figure at the next review. This was in response to Labour arguing that the economic upturn has not had enough of an impact on improving standards of living.

Reports suggest that an estimated 1.35 million people in the UK are paid at the NMW rate. Mr Osborne suggested that the rate would need to increase to £7 per hour by 2015 to bring it in line with pre-recession rates. This is based on advice provided by the Low Pay Commission, lead by the Liberal Democrat Business Secretary Vince Cable.

It is important that employees are aware of their rights and are in a position to challenge a employer if they are not being paid adequately. Employee settlement agreements can often be negotiated for wages going back over a period of months and years in these circumstances.