Working conditions at Amazon, the National Living Wage, and you

Amazon is in the news again, this time for working conditions at its sorting depot. One concern raised was over the National Living Wage , where if The Times article is correct, Amazon may be pushing close to the boundaries (although they do seem to be on the right side). We discovered recently that one of our clients was also at risk and others have come to us for advice. Are you sure that you are not at risk?

Care is needed as to what to include in checking the National Living Wage (NLW). We have been able to assist clients recently over issues such as:

  • How salary and actual hours relate to each other in checking the NLW.
  • The relevance of overtime to calculating the NLW.
  • The relevance of travel time between service users.

The penalty for non-payment of the NLW is 200% of the amount owed, unless the arrears are paid within 14 days.

The maximum fine for non-payment is £20,000 per worker. Furthermore, an employer who fails to pay may be banned from being a company director for up to 15 years.

In the past offending employers have also been treated to negative media exposure, including on regional television.

If you are unsure about the NLW you might take a second opinion – it could save you some embarrassing costs.

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