Documents for Business

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Introduction to this document

Letter advising of NMW rate freeze

Where the government imposes a freeze on any of the national minimum wage (NMW) rates, it’s still worth writing to the affected employees to notify them that there will be no increase to their hourly rate of pay. Use our letter for this purpose.

Informing staff

Strictly speaking, where a freeze on NMW rates means an employee’s pay is exactly the same, there’s no need for you to do anything or to even notify your employee - because nothing has changed. However, so that your employees understand the position and accept that you’re still paying them the correct NMW rate, we recommend that you still write to them to let them know the situation. Ideally, it’s better to write to them sooner rather than later so that they don’t have unrealistic expectations about their pay. Our Letter Advising of NMW Rate Freeze includes a paragraph explaining the freeze and the fact that this means the employee’s hourly rate stays the same.