Complying with the National Minimum Wage

12th June 2017

HMRC recently published a list of excuses used by employers for not paying workers the National Minimum Wage:

  • The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage
  • I thought it was ok to pay foreign workers below the National Minimum Wage as they aren’t British and therefore don’t have the right to be paid it
  • She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors
  • The National Minimum Wage doesn’t apply to my business

So, how can employers prove they are complying?

The Low Pay Commission in their Spring 2016 report recommended that the Government consider introducing a requirement (to employers) that the payslips of hourly paid staff be made to clearly state the hours for which they are being paid.  The National Minimum Wage Low Pay Commission Report Spring 2016 suggests that part of the problem of enforcing the minimum wage is uncertainty regarding the hours for which staff are being paid.

In response to this UNISON have argued for clearer pay statements so that workers could be assured they had been paid at least the National Minimum Wage/National Living Wage. Incorrect recording of hours worked  and therefore subsequent underpayment, is likely an important driver of non-compliance.



 
Other items in Blogs
 
Bethan Hassey
18th January 2018 Guide to filing confirmation statements

  A confirmation statement (CS01) must be filed by a company every year to confirm the information held about them at Companies House. Even if the details on the CS01 haven’t changed since last year’s statement, you must still submit one. This is usually within 14 days of the anniversary of incorporation of the company…

Read More »

Lisa Searle
8th January 2018 National Minimum Wage Rates

  Effective from April 2018 the National Minimum Wage rates will be increasing again, as per the below figures: Workers aged 25 years or more: £7.83 per hour Workers aged 21 to 24 years: £7.38 per hour Workers aged 18 to 20 years: £5.90 per hour Workers aged under 18 (but above compulsory school age):…

Read More »

Julie Quayle
8th January 2018 HMRC – Appeals

  HMRC has updated the postal address for where to send grounds for appeal if you have not paid your PAYE and National Insurance contributions on time. The address that should now be used is: DM PAYE Late Payment Penalties HM Revenue  and Customs BX9 1EW HMRC will charge penalties if more than one of…

Read More »

Jaimie Lane
4th January 2018 Charity annual returns due

  Charities with the financial year end of 31 March 2017 must submit their annual return by 31 January 2018, 10 months after the year end. What you need to submit varies based on whether it is an un-incorporated organisation or a charitable company. It also varies based on income of the charity – requiring…

Read More »

Richard Alecock
4th January 2018 Directors’ responsibilities

  Limited company directors and secretaries are collectively referred to as ‘officers’. Directors are appointed by members (shareholders and guarantors) to run and manage the day-to-day operations of the business. Secretaries are optional for private companies, but not public companies. They are usually appointed to assist directors with important administrative tasks. An Overview Company directors…

Read More »

Andrew Band
4th January 2018 EU competition infringements by European truck manufacturers

  The European Commission imposed fines of €3.4 billion in July 2016 and September 2017 following findings that a number of manufacturers were party to a cartel at senior management level from 1997-2001. Breakdowns of the fines for the companies involved were as follows: Daimler/Mercedes – €1 billion Scania – €880 million DAF – €752…

Read More »