East Anglia based Commercial and Employment specialist solicitors Thompson Smith & Puxon Solicitors, which has offices in Colchester and Clacton in Essex, is alerting businesses to the new National Minimum Wage rates that are being introduced on 1st October 2007.

It warns that employers who fail to pay employees the legal minimum wage could be subject to an investigation by HM Revenue & Customs. They could even face employment tribunal or court proceedings.

The National Minimum Wage is a legal right which covers almost all workers in the UK. It became law on 1 April 1999 to prevent unduly low pay and also to help create a guideline for employers.

The national minimum wage applies to nearly all workers and sets hourly rates below which employers must not allow pay to fall.

For pay reference periods beginning on or after 1 October 2007, the rates are:

• £5.52 an hour to adult workers aged 22 and above;

• £4.60 an hour to workers aged 18-21 - the development rate;

• £3.40 an hour to workers aged below 18 who are no longer of compulsory school age.

Thompson Smith & Puxon offers expert advice on employment law. Telephone 01206 574431 or 01255 221919.