The Grimsby and Cleethorpes Enterprise Agency Enterprise Agency - helping you from Business idea to success

Small business legal update

Home / News / Legal update

Government to consult on closing minimum wage loophole


The Government has announced it will launch a consultation on plans to close a loophole in minimum wage laws. The loophole allows employers to use tips as a means of topping up wage levels to National Minimum Wage requirements, which is practiced in the catering sector, particularly in bars and restaurants. Unions and workers recently protested against the practice. The Government has finally announced its plans to close the loophole, ensuring employers pay the legal minimum wage to their staff. The resultant laws are expected to take effect in 2009. The Federation of Small Businesses (FSB) says its members are very much in favour of closing the loophole - 85% say they are in favour of the legislation changing.

There is more on this story at:
2008-08-15