Raft of new legislation comes into force

A raft of new regulations, including changes to the National Minimum Wage (NMW), came into force earlier this month.

From 1 October, employers are banned from using tips and service charges to bring the wages of bar and restaurant workers up to the minimum salary.

The change follows a recent case in the Court of Appeal, in which the judge concluded that employers must not take into account tips, gratuities, service charges or cover charges when paying the NMW, unless these are paid to employees through the employer’s payroll.

It came on the same day that the main adult rate of the NMW rose by 7p an hour to £5.80. Workers aged 18-21 are now guaranteed a minimum rate of £4.83 – up from £4.77. For 16 and 17-year-olds, the rate has gone up to £3.57 an hour.

In addition, businesses will now have to abide by new rules set out in the Companies Act 2006.

With the final sections of the Act coming into effect last week, the biggest overhaul of company law is now complete. Key provisions of the Companies Act 2006 include:

• Creating separate and simpler model Articles of Association for small companies, reflecting how they operate
• Enabling greater use of electronic communications with shareholders, therefore avoiding unnecessary cost and time consuming administration
• Making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public. 

If you think the new regulations may affect you, please contact us.