Monday, 3 October 2011

Changes to minimum wage and agency worker rules to affect cleaning companies

Many office cleaning companies and  cleaning companies are already struggling, clients are expecting more and more for less, cleaners want and demand higher pay, times are uncertain, one thing that is certain is the increase to national minimum wage from this month - details below;

In October, some changes to employment law will come into force, effecting businesses of all sizes across the county. These changes could have a big impact on your employees, your responsibilities are minimal. But what do the changes mean for your business and what action do you need to take? • Firstly, the national minimum wage rates will increase on October 1 2011.

This means you’ll have to pay at least: o £6.08 per hour for workers aged 21 or more. o £4.98 per hour for workers aged 18-20. o £3.68 per hour for workers aged 16-17. You’ll also need to pay any apprentices who are under the age of 19 at least £2.60 per hour, as well as those aged 19 and over who are in the first year of their apprenticeship. If you provide any workers with accommodation, the accommodation offset will be increased to a maximum of £4.73 per day.

We would recommend to update all of your employees' contracts with the new rate of pay to ensure clarity of information, in case of dispute. This could be done through an amendment letter stating the new rate and highlighting that ‘all other terms and conditions of employment remain the same.’ Failure to pay the minimum rate is a criminal offence. •

The second change to come into effect is the Agency Workers Regulations 2010. These regulations give agency temps a right to the same basic working and employment conditions as they would have had if they had been directly employed by the hirer to do the same job.

An agency temp will have to work for a qualifying period of 12 weeks, in the same role, with the same hirer, before they are entitled to equal treatment. Occupational social security schemes, such as company pension schemes and occupational sick pay, are not included in basic working and employment conditions.

All agency temps will be entitled to certain rights from the first day of an assignment, including access to canteens, childcare facilities, car parking and the right to be notified of permanent vacancies. .

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