Filed under Press releaseWednesday, 16 February 2011
With new regulations on the interaction between National Minimum Wage rates and travel and subsistence schemes in place since January 2011, members of REC's industrial sector group met to discuss this critical issue.
pecialist recruiters have reiterated the need for continued policing and clarity around the rules that apply to these schemes to ensure they are not breaching the law.
Currently, the National Minimum Wage Regulations include provisions which set out how a worker’s pay is calculated and determine whether or not the worker is receiving at least National Minimum Wage (NMW).
The new regulations mean that the payments made by an employer to a worker for travel and subsistence will have to be in addition to the minimum wage. As a result, employers will need to ensure that they pay their workers the NMW in addition to payments under the travel and subsistence schemes.
Commenting on the issue, Marshall Evans, Vice Chair of REC Industrial said:
“We always welcome moves to create a level playing field at the lower end of the market. The Government’s new regulations are a step in that direction.
“To safeguard our industry and ensure best practise these schemes, if operated, need to be run lawfully and by the book. We are committed to eliminating rogue practises in our sector and we will continue to work towards this goal with the REC.
“However, we also require the GLA and HMRC to take decisive action. Despite calls for increased policing, we continue to see cases where these schemes are not operated correctly. Policing and clarity is of utmost importance as it is our most important asset – our people – that are most affected by poor practices.
“In the past, we have called for the Government’s plans to “name and shame” employers who flout NMW to be extended to poorly run travel and subsistence schemes. We will continue to mount pressure to the Government to ensure that the high standards and services valued by our clients are maintained.”
Contact: Ed Sexton
Phone: 020 7009 2192