Latest news with #NMW
Pembrokeshire Herald
5 days ago
- Business
- Pembrokeshire Herald
Workers to receive wage boost as government cracks down on underpayment
THOUSANDS of workers in Wales are set to benefit from a financial uplift as the UK Government delivers what it calls the most significant upgrade to workers' rights in a generation. The Department for Business and Trade has confirmed that 21 employers in Wales have been named and shamed for failing to pay the National Minimum Wage. These employers are among 518 businesses across the UK who have been ordered to repay over £7.4 million to nearly 60,000 underpaid workers. Investigations by HM Revenue and Customs (HMRC) into these breaches took place between 2015 and 2022. All of the businesses named have since repaid the wages owed and faced financial penalties of up to 200% of the underpayment. This action forms part of the UK Government's wider Plan for Change, which includes a major uplift in the National Living Wage (NLW) and National Minimum Wage (NMW). The April 2025 increase has given full-time workers on the NLW a £1,400 annual pay rise, benefitting around 150,000 workers in Wales alone. Minister for Employment Rights, Justin Madders MP, said: 'There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don't pay their employees what they are owed. Ensuring workers have the support they need and making sure they receive a fair day's pay for a fair day's work is a key commitment in our Plan for Change. This will put more money in working people's pockets, helping to boost productivity and end low pay.' The Government says these measures reflect its ongoing commitment to building a stronger economy by ensuring financial security for workers and taking firm action against non-compliant employers. National Minimum and Living Wage Rates: Category 2024 Rate 2025 Rate National Living Wage (21+) £11.44 £12.21 18 to 20 £8.60 £10.00 Under 18 £6.40 £7.55 Apprentice £6.40 £7.55
Yahoo
31-03-2025
- Business
- Yahoo
How to Help Clients Prepare for April's Employer NI Increase
As UK's April's employer National Insurance (NI) hike approaches, accountants are in a unique position to help small and medium-sized businesses (SMBs) manage the financial impact advises Pauline Green, Head of Product Programs and Compliance at Intuit QuickBooks Many businesses may struggle to navigate these regulatory changes—especially when those changes hit their bottom line and right now, business owners are facing a double hit: an increase in employer NI contributions alongside the rising national minimum and living wage. The reality is, many SMBs are feeling the pressure. We know that 88.3% of small business owners worry about making accounting mistakes, and 27.9% are very concerned about errors in financial reporting, payroll, and tax preparation and these fears aren't unfounded. Getting payroll and compliance wrong can lead to serious financial consequences. However, by engaging professional accounting support, SMBs can mitigate many of these risks and reduce the financial impact. So, how can accountants help clients navigate this shift? Understanding the potential impact of these changes and taking proactive steps to mitigate financial strain will be essential in ensuring businesses can manage increased costs without disrupting operations. Understanding the NI Increase and Its Impact The increase in employer NI contributions, alongside the reduction in the secondary threshold, means businesses will have to pay more per employee, raising payroll costs. Some industries and workforce structures will be impacted more than others. Businesses that employ apprentices will face an 18% wage increase, while those relying on workers aged between 18 and 20 will see their wage bill rise by 16.3%. Even businesses with an older workforce will experience a 6.7% increase in payroll costs. For industries such as retail and construction, where younger workers and apprentices make up a large portion of the workforce, the financial impact could be more severe. In retail alone, 13% of employees are aged 16 to 24, which means a significant number of businesses in this sector may need to find ways to offset rising costs while still remaining competitive. With increased payroll costs, businesses may reconsider their hiring plans. Some may panic and decide to freeze recruitment or scale back their hiring efforts altogether, placing additional pressure on existing employees. Salary structures may need to be reassessed, as some businesses have wage bands tied to the National Minimum Wage (NMW). If businesses choose to increase salaries across the board to maintain fairness, this will further increase costs. For businesses struggling to get a holistic view of these rising costs, they may resort to limiting pay raises and bonuses. However, this could have an adverse effect on employee morale and retention, making it harder to keep top talent engaged. Other business initiatives, such as sustainability programs and capital investment projects, may also be put on hold while business owners prioritise maintaining financial stability. Despite these challenges, there is relief available. The increase in Employment Allowance from £5,000 to £10,500, for example, will help offset some of the costs associated with the employer NI increase. Financial forecasting and payroll reviews: One of the most effective ways accountants can help businesses prepare for the NI increase is by conducting detailed financial forecasting and payroll reviews. Payroll is usually the biggest expense for any business, and predicting the financial impact of NI and NMW increases will allow business owners to make informed decisions. Financial modeling helps businesses understand how much they will need to set aside for payroll, while scenario planning can provide insights into different ways to manage costs without compromising operations. Understand the options: Another area where accountants can provide valuable guidance is in navigating salary sacrifice schemes and pensions. Salary sacrifice can be an effective way to reduce employer NI contributions, but not all pension schemes support this approach. Businesses will need expert guidance to understand whether this is an option for them and how they can implement it effectively. Pensions are another critical consideration, and accountants should help businesses explore the different tax treatments. Relief at source pension schemes, for example, may be beneficial for lower-paid employees earning between £10,000 and £12,570. Understanding auto-enrollment thresholds can also help businesses optimize pension contributions while remaining compliant. Support growth: Beyond payroll, accountants can help clients explore additional financial relief options, such as grants and tax incentives. Some businesses may qualify for government-backed funding or tax reliefs that could ease the burden of rising payroll costs. Identifying these opportunities and ensuring businesses apply for them in time could make a significant difference in their financial outlook. According to our recent Accounting for the SMB Economy report, 73.1% of businesses say that working with an accountant has strengthened their financial reporting, and has helped them secure business loans and government support. Hiring Strategies: Workforce planning will also be a key consideration for many businesses. With rising costs, some may need to reconsider their staffing strategies. For businesses that cannot afford to hire new employees, alternative staffing arrangements—such as part-time roles, flexible working hours, or outsourcing certain tasks—could be really beneficial. Part time staff in particular have a significantly lower tax dependency if they sit below certain thresholds. Perhaps open roles could be split into job shares to keep costs down. These sort of suggestions could help clients maintain efficiency while keeping costs under control. The employer NI, living and minimum wage increases present a significant financial challenge for SMBs, who may make kneejerk reactions without having all the information they need to hand. By leveraging payroll data and the right financial guidance, there is no doubt that businesses can navigate these changes more successfully. Now is the perfect time for accountants to step in and provide proactive, strategic advice. By helping with payroll forecasting, salary structuring, financial modelling, and hiring strategies, accountants can help businesses stay ahead of these changes and thrive despite rising costs. "How to Help Clients Prepare for April's Employer NI Increase" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
25-03-2025
- Business
- Yahoo
Pizza Hut workers accuse franchisee of docking wages
Pizza Hut workers are accusing a franchise of ''blatantly unlawful'' behaviour alleging it has altered timesheets, docked wages and stopped payments per delivery. Glenshire Group which runs all 22 Pizza Hut delivery outlets in Scotland has been served with a grievance by the Unite union on behalf of drivers who claim they were told of changes by text with no consultation. Delivery driver, Cian, told the BBC that Glenshire had shown ''a complete disdain for their staff and their customers'' and said it was ''quite honestly abysmal''. Glenshire said it is "absolutely committed to robust employment practices" and said it is "listening to our colleagues, to understand where there are concerns". Cian, 30, has been delivering pizzas in the west of Glasgow for more than two years. An employee of Pizza Hut franchise, Glenshire Group, he has always been paid the National Living Wage plus a fee of £1.45 per delivery. But he said his terms and conditions were changed without consultation or warning. He said two weeks ago he and several other drivers were told via text message that his pay had increased to £12.21 an hour but he had lost his £1.45 delivery payments, or what the company calls "discretionary driver commissions". ''The £1.45 would pay for my fuel and a tiny bit of the running cost of my car but I've been living paycheque to paycheque," he told the BBC. "We had multiple drivers just quit because they simply can't afford to do this job if they're having to pay for their own fuel. There's one shop that has lost every single one of their drivers.'' In a letter to staff dated 10 March, seen by the BBC, Glenshire said: "We have removed discretionary driver commissions with effect from today. This change is necessary to ensure the sustainability of our operations." The letter does not state that the company has any plans in place to ensure drivers' expenses will be paid by Glenshire. In a statement to the BBC, the company said that ''driver commissions have not been reduced, rather the remuneration model has changed from a 'per delivery' amount to a 'per mile' basis". Unite's head of hospitality, Bryan Simpson has accused Glenshire of ''a cynical attempt to offload over 100 drivers'' before the rise in employers' National Insurance Contributions (NICs), the National Minimum Wage (NMW) and the National Living Wage on 1 April. Among the increases next month, the National Living Wage for people aged 21 and over will rise from £11.44 to £12.21. "I have never seen something so blatantly unlawful occur, even in an industry, frankly, that is not known for decent workers rights. This is the worst that I've came across in over a decade," Mr Simpson said. He said the loss of drivers' commission per delivery could effectively mean that "these workers are going to be brought below the minimum wage. "They're going to be losing thousands of pounds a year. So, as far as we are concerned, this is fire and rehire under a different name.'' Unite's grievance, seen exclusively by the BBC, also accused Glenshire of acting ''fraudulently'' by going into old staff timesheets and retroactively adding unpaid 20 minute rest breaks. In a text message seen by the BBC, Glenshire director Zibby Ghafoor told store managers ''all time sheets have been deleted for last we please add breaks in." Unite claims Glenshire unlawfully deducted these breaks from their wages. In its statement, Glenshire said that there have been "no changes to break policies". A manager called Adam, not his real name, said he works for hours on his own in his store. He said it's simply not possible to take breaks. "You do not get your 20 minutes of uninterrupted time not only do we not get breaks, we now get charged for the breaks that we don't take.'' Cian says it's his ''civic duty'' to speak out even though he knows it could put him at risk of losing his job. ''I'm trying to help people who can't stand up for themselves, because the way the Glenshire group have treated everyone is abysmal. The long term ramifications of what they are doing, it's just not worth me keeping my job.'' Glenshire Group employs more than 200 staff including more than 100 delivery drivers although over the last few days, the BBC understands several have quit. In the 10 March letter to staff, Glenshire said that with the increases in employer NICs and the National Living Wage rise on 1 April it was having to "reassess our driver delivery model in order to retain business viability". It also said drivers could choose to switch from being employed to self-employed. The letter stressed this would be a voluntary choice and would not be compulsory. Glenshire last night told the BBC there were "no blanket changes to self-employed contracts taking place". Employment lawyer Joanne Moseley of Irwin Mitchell warned that from 1 April, when the new National Living Wage is introduced, Glenshire could be in breach of minimum wage regulations. "If Glenshire doesn't reimburse its drivers for payments they've incurred in connection with their employment - in this case their petrol expenses - they will be in breach of the NMW regulations. HMRC will investigate and has the power to impose financial penalties," she says. Adam called on bosses of the Pizza Hut company to investigate the Glenshire franchise. "Please be aware of what this company are doing to your brand. Please be aware of what they're doing to the staff and all for their own benefit, all to save them money," he said. A spokesperson for Pizza Hut UK said: "Pizza Hut is deeply committed to ensuring a safe and fair working environment for all employees and as such has strict policies in place that its franchise businesses must adhere to. "Although Glenshire Group operates as an independent franchisee and is ultimately responsible for its own employment practices, we take these allegations seriously. "Glenshire will be actively engaging in the coming days with any concerned employees, and we will continue to investigate this situation."
BBC News
25-03-2025
- Business
- BBC News
Pizza Hut workers accuse franchisee of docking wages
Pizza Hut workers are accusing a franchise of ''blatantly unlawful'' behaviour alleging it has altered timesheets, docked wages and stopped payments per Group which runs all 22 Pizza Hut delivery outlets in Scotland has been served with a grievance by the Unite union on behalf of drivers who claim they were told of changes by text with no driver, Cian, told the BBC that Glenshire had shown ''a complete disdain for their staff and their customers'' and said it was ''quite honestly abysmal''.Glenshire said it is "absolutely committed to robust employment practices" and said it is "listening to our colleagues, to understand where there are concerns". Cian, 30, has been delivering pizzas in the west of Glasgow for more than two years. An employee of Pizza Hut franchise, Glenshire Group, he has always been paid the National Living Wage plus a fee of £1.45 per he said his terms and conditions were changed without consultation or warning. He said two weeks ago he and several other drivers were told via text message that his pay had increased to £12.21 an hour but he had lost his £1.45 delivery payments, or what the company calls "discretionary driver commissions".''The £1.45 would pay for my fuel and a tiny bit of the running cost of my car but I've been living paycheque to paycheque," he told the BBC."We had multiple drivers just quit because they simply can't afford to do this job if they're having to pay for their own fuel. There's one shop that has lost every single one of their drivers.''In a letter to staff dated 10 March, seen by the BBC, Glenshire said: "We have removed discretionary driver commissions with effect from today. This change is necessary to ensure the sustainability of our operations."The letter does not state that the company has any plans in place to ensure drivers' expenses will be paid by a statement to the BBC, the company said that ''driver commissions have not been reduced, rather the remuneration model has changed from a 'per delivery' amount to a 'per mile' basis". 'Attempt to offload drivers' Unite's head of hospitality, Bryan Simpson has accused Glenshire of ''a cynical attempt to offload over 100 drivers'' before the rise in employers' National Insurance Contributions (NICs), the National Minimum Wage (NMW) and the National Living Wage on 1 the increases next month, the National Living Wage for people aged 21 and over will rise from £11.44 to £12.21."I have never seen something so blatantly unlawful occur, even in an industry, frankly, that is not known for decent workers rights. This is the worst that I've came across in over a decade," Mr Simpson said the loss of drivers' commission per delivery could effectively mean that "these workers are going to be brought below the minimum wage."They're going to be losing thousands of pounds a year. So, as far as we are concerned, this is fire and rehire under a different name.'' 'Not worth me keeping my job' Unite's grievance, seen exclusively by the BBC, also accused Glenshire of acting ''fraudulently'' by going into old staff timesheets and retroactively adding unpaid 20 minute rest breaks. In a text message seen by the BBC, Glenshire director Zibby Ghafoor told store managers ''all time sheets have been deleted for last we please add breaks in."Unite claims Glenshire unlawfully deducted these breaks from their its statement, Glenshire said that there have been "no changes to break policies".A manager called Adam, not his real name, said he works for hours on his own in his store. He said it's simply not possible to take breaks."You do not get your 20 minutes of uninterrupted time not only do we not get breaks, we now get charged for the breaks that we don't take.'' Cian says it's his ''civic duty'' to speak out even though he knows it could put him at risk of losing his job. ''I'm trying to help people who can't stand up for themselves, because the way the Glenshire group have treated everyone is abysmal. The long term ramifications of what they are doing, it's just not worth me keeping my job.''Glenshire Group employs more than 200 staff including more than 100 delivery drivers although over the last few days, the BBC understands several have the 10 March letter to staff, Glenshire said that with the increases in employer NICs and the National Living Wage rise on 1 April it was having to "reassess our driver delivery model in order to retain business viability".It also said drivers could choose to switch from being employed to self-employed. The letter stressed this would be a voluntary choice and would not be compulsory. Glenshire last night told the BBC there were "no blanket changes to self-employed contracts taking place". Call to investigate Employment lawyer Joanne Moseley of Irwin Mitchell warned that from 1 April, when the new National Living Wage is introduced, Glenshire could be in breach of minimum wage regulations."If Glenshire doesn't reimburse its drivers for payments they've incurred in connection with their employment - in this case their petrol expenses - they will be in breach of the NMW regulations. HMRC will investigate and has the power to impose financial penalties," she called on bosses of the Pizza Hut company to investigate the Glenshire franchise."Please be aware of what this company are doing to your brand. Please be aware of what they're doing to the staff and all for their own benefit, all to save them money," he said.A spokesperson for Pizza Hut UK said: "Pizza Hut is deeply committed to ensuring a safe and fair working environment for all employees and as such has strict policies in place that its franchise businesses must adhere to."Although Glenshire Group operates as an independent franchisee and is ultimately responsible for its own employment practices, we take these allegations seriously. "Glenshire will be actively engaging in the coming days with any concerned employees, and we will continue to investigate this situation."
