Craft Business

October brings with it new National Minimum Wage wage legislation which sees the basic wage to all workers in the UK rise. However research by Bibby Financial Services suggests 56% of retailers have yet to prepare their business for the changes. With the rate for adults aged 22 and over increasing by 3.8% to £5.73 on 1st October, nearly one in ten of retailers say they will only begin thinking about the NMW rise once it happens, a worrying trend as the Government is taking an increasingly tougher stance on employers who fail to abide by the legislation.
Bibby Financial Services found that of retail firms which have made plans for the NMW, some 18% are looking to cut costs elsewhere in their business to pay for the increase, while 24% will reduce the number of employees. “Regardless of how retailers feel about increases to the National Minimum Wage, there is no doubt that the legislation is here to stay,” says global chief executive David Robertson,. “Businesses are constantly bombarded with red tape and many smaller retailers struggle to keep up with the ever-changing legislative landscape, however, this is a serious legal issue. Those employers who fail to comply with the National Minimum Wage regulations face substantial fines and possible criminal proceedings. It is therefore vital owners and managers get up to speed on the legislation as soon as possible, before it is too late.”
"These changes come about every year and, although there is an additional cost involved, it is important for small firms to comply with the law," agrees Nick Palin, the Forum of Private Business’s director of finance and administration. "Those that don’t comply risk paying an even higher price. Recent examples show that the Government is more than willing to prosecute firms if they are in breach of the legislation."

For more information on how the new rules affect you visit http://www.hmrc.gov.uk/nmw