Legislative changes effective 1 October 2009.

The following changes came into effect on 1 October 2009 under the common commencement date provisions:

  • National minimum wage for workers aged 22 or over increases to £5.80 per hour (previously £5.73); for workers aged 18 to 21 there is 6p rise to £4.83 and for workers aged 16 and 17 it rises by 4p from £3.53 to £3.57. Up-to-date details are available on the Direct Gov website.
  • Tips can no longer be included to make up the national minimum wage. From 1 October 2009 it is unlawful for employers to use service charges, tips and gratuities to take workers’ pay up to the national minimum wage. The payment of tips through an employer’s payroll, so that they count towards payment of the national minimum wage, is also prohibited.
  • From 1 October 2009 employers need to ensure that, where they have previously relied on tips to make up staff wages to the national minimum wage, staff are being paid at least the new minimum hourly rates, exclusive of tips. There are penalties for non-compliance. Further information and a link to the BIS ‘Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges’ is available from the 'Related links' section. 
  • The maximum weekly amount for calculating unfair dismissal and redundancy payments is increased from £350 to £380. The £380 limit will remain in place until February 2011. (Normally the limit is adjusted each February in line with the retail prices index (RPI) but in the present economic climate it is likely that the limit would have remained the same or even fallen below the £350 limit). 
  • Changes to the registration fee structure for registration for data protection purposes. Under the new two-tier system public authorities and private organisations that have been in existence for more than one month, have an annual turnover of at least £25.9m and have 250 or more employees (Tier 2 organisations) will be subject to a £500 registration fee. The £35 flat-rate fee still applies to all other, Tier 1, organisations. Charities irrespective of size will always fall within Tier 1. More information is available on the ICO website.