Travel expenses can no longer make up part of minimum wage

29 December 2010
Travel expenses can no longer make up part of minimum wage

An amendment to minimum wage regulations means that employers can no longer use schemes to replace part of their employees' pay with travel and/or subsistence expenses.

The change comes as part of the National Minimum Wage (Amendment) (No. 2) Regulations 2010 and takes effect from 1 January 2011. It will apply to any pay reference period beginning on or after 1 January 2011.

The move is designed to put an end to practices which the government has termed "exploitative".

For more information see:

http://www.legislation.gov.uk/uksi/2010/3001/contents/made

Also see HRBird's pay section:

http://www.hrbird.org.uk/resources.asp?hr-resource=Pay-Guidance&p=1.1.27.3&ID_cat=172

Source: Personnel Today

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