Extra Leave and Minimum Wage - 3rd Oct, 2007

MP has welcomed new leave entitlement which will benefit around 300,000 workers across Wales - and another rise in the minimum wage that will benefit 50,000.

Up to six million workers across the UK, including 3.5 million women and 2.5 million men, will benefit from the extra annual leave - around 300,000 of them in Wales. The new leave entitlement helps fulfil a pledge to give an extra boost to workers who are made to take bank holidays out of their annual leave entitlement.

In addition, more than a million workers across the UK will be better off as a result of the minimum wage increases which, when combined with Working Tax credits and other benefits, will provide a guaranteed minimum income of at least £276 a week for families with one child and one full-time worker.

Sian James MP said: “This is great news for workers in Swansea East who stand to benefit from the increased holiday entitlement introduced from this week and many of my constituents will also be better off thanks to the latest increase in the minimum wage.“

The changes that come into effect this week will be backed up by a tough new minimum wage enforcement regime announced by the Government last month, including increased maximum fines for employers who flout the laws. Employers who do not pay the correct wages will have to repay arrears to their workers at a higher rate.

Notes to editors

· The minimum wage will increase from £5.35 to £5.52 an hour for workers aged 22 and over. There will also be increases from £4.45 to £4.60 for 18-21 year olds, and from £3.30 to £3.40 for 16-17 year olds.

· The minimum annual leave entitlement will increase from 20 days to 24 days for full-time workers – as part to prevent bank holidays being deducted from statutory holiday entitlement. A further increase to 28 days will take place on 1 April 2009.

· The confidential NMW helpline number is 0845 6000 678. The number for Northern Ireland is 0845 6500 207. As well as receiving complaints about non-payment of the minimum wage, the helpline provides advice and information.

· Employers who fail to pay the NMW face fines and potential criminal prosecution.

· Prosecutions are conducted by HMRC and the Revenue and Customs Prosecution Office (RCPO). The first successful criminal prosecution occurred in August this year, when the owner of Rascals Day Nursery in Walthamstow was fined £2500 after entering a guilty plea to preventing HMRC officials from accessing staff records. The defendant was also ordered to pay £500 in court costs.

· There are now two common commencement dates for changes to the regulations (April 6 and October 1), which makes it easier for businesses to plan ahead and adapt to the new rules.