Employers warned by the Chancellor to not adjust pay and benefits to offset cost of National Living Wage

Within weeks of the introduction of the National Living Wage on 1 April 2016, there have been reports that some employers - primarily those operating in the retail sector - have reduced hours, pay rates and other benefits to offset the cost of raising the wage floor. In response to this, the Chancellor, George Osborne, has warned that such measures do not abide by the "spirit of the law" and that such employers should be mindful of their social responsibilities and corporate reputation. Labour MPs have also called for penalties to be imposed on employers who make use of such offsetting measures.

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