National Minimum Wage 1999 - 2009: Ten years of fairer treatment at work

This week marks ten years since the introduction by the Labour Government of Britain's first ever National Minimum Wage. Ann McKechin MP today celebrated the introduction and welcomed three new key rights which come into effect in April.

Ann said:

"I became an MP to fight for the rights of working people in and I'll always do what I can to make sure people in Glasgow North get a fair deal.  I've always supported the Labour government's efforts to bring more fairness at work and I'm pleased that from April three new key rights which I voted for come into effect.
 
"It's only right that hard working people get a decent amount of time off and the chance to balance work and home life. So from April statutory holiday entitlement will increase by 4 days to 5.6 weeks for full-time workers (28 days), pro rata for part-timers.   And more people in Glasgow will now have the right to request flexible working as from April it will be extended to parents of children aged 16 or under."

 Ann McKechin MP also gave a warning to rogue employers that they face tough action if they underpay staff:

"In April tough new powers to take action against rogue employers who underpay staff come into force.  Every worker should earn a fair wage for a fair day's work - there is no excuse not to pay up. I supported and voted for the Employment Act because I wanted to see tougher action on rogue employers who con their staff.
 
"Rogue employers need to be exposed. If you think a rogue employer is not paying up then get in touch with me on 0141 946 1300, email me via my new website; - www.annmckechinmp.net or call the national minimum wage helpline on 0845 6000 678. And don't worry, you don’t have to give your name or details to them if you don't want to."

New rights coming into force in April
 
1. Increasing statutory holiday entitlement

• From 1st April 2009 statutory holiday entitlement will increase by 4 days to 5.6 weeks for full-time workers (28 days), pro rata for part-timers, benefiting 6 million people.
• The decision to extend the current statutory holiday entitlement reflects the number of permanent bank and public holidays. There are 8 permanent bank and public holidays in Great Britain.
• This increase builds on the announcement in October 2007, where all workers have had the statutory right to at least 4.8 weeks paid annual leave (that's 24 days paid holiday if you work five days a week).

2. Extending the right to request flexible working

• From 6th April 2009 the right to request flexible working will be extended to parents of children aged 16 or under, benefiting an extra 4.5 million people.
• If you have a child aged 16 or under, you are an employee and you have worked for your employer for 26 weeks continuously before applying, you will have the statutory right to ask for flexible working.
• Under the law your employer must seriously consider any application you make, and only reject it if there are good business reasons for doing so. Previously, the right to request flexible working applied to employees with disabled children, or children under the age of six. In 2008 14 million employees worked flexibly within the last 12 months with 91% of requests being granted.

3. Strengthening enforcement of the National Minimum Wage 

• It is the tenth anniversary since the National Minimum Wage was first paid. On this important anniversary Labour is building on this achievement by significantly strengthening its enforcement so that everyone gets what they are legally entitled to.
• Rogue employers who underpay staff by not meeting the NMW will fact tough new penalties. We are introducing a fairer method for dealing with national minimum wage arrears, calculated so that workers do not lose out as a result of underpayment. And employers breaking the law will face automatic penalties with a maximum penalty for non-payment of up to a potentially unlimited fine. The most serious cases of non-compliance will also be tried in a crown court.

The Employment Act 2008 comes into force on 6th April 2009 meaning:

• Removal of the limit on maximum fines for underpayment of the national minimum wage, currently £5,000.
• The most serious cases of non-compliance will be tried at Crown Court, which can impose an effectively unlimited penalty
• Introducing a fairer way of dealing with national minimum wage arrears, calculated so workers do not lose out. In the last year alone the Government helped to restore £3.9 million in arrears to over 19,000 workers and has also increased the enforcement budget for the NMW by £2.9 million. This change will make calculating arrears easier.