NATIONAL MINIMUM WAGE HOW DO YOU …

1 NATIONAL MINIMUM wage . The rules and regulations related to the NATIONAL MINIMUM wage (NMW) are quite detailed and this summary is intended to give basic requirements for employers employing a plumbing apprentice registered with the SNIJIB. Employers requiring detailed information on any aspect of the NMW should either telephone the NMW helpline on 0845. 6000 678 or visit where detailed information is available on NMW employment rights. HOW DO YOU CALCULATE AN APPRENTICE'S wage RATE? st First Step: Consider whether an apprentice is in their 1 Year or is 18 years or younger. Apprentices who are in their first 12 months of their apprenticeship must receive the SNIJIB wage rate. Apprentices who are 18 years and under must receive the SNIJIB wage rate applicable for their year of apprenticeship.

2 Second Step: If neither of the above, take into account the age of the apprentice who is entitled to NMW rates. The NMW Development rate for apprentice workers applies for those aged 19-20 years and is (this will increase on 01/10/15). The NMW Main rate for apprentice workers applies for those aged 21 years and over, which is (this will increase on 01/10/15). For example a young person starting his/her apprenticeship at age 16 or 17 will receive the SNIJIB rate of wages and th will not need to be paid the NMW Development rate until they reach their 19 birthday when they will qualify for and must be paid at least the NMW development rate of per hour (unless the SNIJIB rate is higher, this must be paid).

3 Employer obligations: Where an employer has failed to pay the NMW, HMRC will issue a notice of underpayment which requires an employer to pay: A penalty to the Secretary of State. The penalty is set at 50% of the total underpayment, with a MINIMUM of 100. and a maximum of 5,000 being applied. wage arrears. The calculation of arrears is carried out using current NMW rates. Where an employee worked in both age bands during their employment the calculation of arrears is calculated using the current rate for the bands the employee served. Serious cases will be triable in the Sheriff Court. Employers who fail to produce records to a worker on request may be subject to a complaint sent from the worker to an Employment Tribunal which can impose a penalty for failure to produce the required records.

4 Where a Tribunal or Civil Court is making a decision on a NMW case the burden will always be on the employer to prove that the NMW has been paid. Employers need to keep sufficient records to prove that they are paying the NMW to their workers;. It is a criminal offence to refuse to pay the NMW, to obstruct compliance officers or not to keep proper records. It is against the law to dismiss a worker because of the NMW. To do so would incur a claim of unfair dismissal. Employers note: An apprentice is entitled to an increase in pay on the anniversary of their apprenticeship (a year from the commencement of their apprenticeship and annually there on in). SNIPEF Training Services Ltd YT/NG/01/10/14. The rate of wages to be paid to an apprentice which incorporate the SNIJIB rates of pay and the requirements of the NATIONAL MINIMUM wage are as detailed in the undernoted table: Apprentice wage Rate**.

5 St nd rd th Age 1 Year 2 Year 3 Year 4 Year 16 n/a n/a n/a 17 n/a n/a 18 n/a 19 20 21 22 23 24 25 26+ ** Effective from October 2014. st st The next SNIJIB wage rate will take affect from 1 July 2015. The next NMW increase will take affect from 1 October 2015. TERMS OF SNIPEF TRAINING LTD AGREEMENT. Apprentices must be paid the appropriate promulgated hourly rate of wages set by the Scottish & Northern Ireland Joint Industry Board (SNIJIB) for the Plumbing Industry. In addition the requirements of the NATIONAL MINIMUM wage must be adhered to for employers to comply with the law. All apprentices must be included in the Plutos Holiday Credit scheme and are entitled to receive 30 days of annual and public holiday paid per annum in accordance with working Rule 4.

6 Apprentices are also eligible to receive industry sick pay (as table below). Such sick pay which is claimed from the Industry Sick Pay Scheme is in addition to any Statutory Sick Pay which may be due to be paid to an apprentice. SCHEDULE OF RATES OF PAY, SICK AND HOLIDAY PAY. ** RATE OF PAY WEEKLY wage WEEKLY HOLIDAY DAILY RATE OF. PER HOUR (based on hours) PAY *SICKPAY. st 1 Year nd 2 Year rd 3 Year th 4 Year ** Effective from 7 July 2014. * Employer claims and receives this payment from the Industry Sick Pay Scheme to issue with the Statutory Sick Pay to the apprentice (or where an employer if not operating the Industry Sick Pay Scheme this amount is paid with the Statutory Sick Pay). SNIPEF Training Services Ltd YT/NG/01/10/14.