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01/10/2009 New minimum wage rules come into force |
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New rules come into place today forbidding employers in drinking and catering establishments to use tips to subsidise the minimum wage.
Previously it has been lawful for tips to be counted towards the pay of staff, meaning the official salary can be less than the statutory level and then topped up with gratuities.
This means that those working in the capital who are continued to be paid this way will have a legal case to bring against their employer and may wish to see employment lawyers in London about this.
Today also sees new minimum wage rates coming into force, with the rate for those aged 22 or over rising from £5.73 to £5.80.
Prime minister Gordon Brown has pledged that this will rise in each of the next five years.
Earlier this week, the manufacturers' organisation EEF told the Low Pay Commission that future changes to the national minimum wage should be linked to larger movements in pay rates to help employers plan for them.
Written by Anthony Dyson
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