Minimum wage mistakes

Top national minimum wage mistakes

We are all hearing of the HMRC “name and shame” attack against those employers who are failing to pay the national minimum or living wage.

Last month saw over 200 employers on the published list.

What is apparent though is that this list doesn’t just comprise of those employers deliberately not paying minimum wage.

HMRC has stated that common errors relate to areas such as non-payment for overtime, not paying apprentices correctly and making deductions for uniform costs from pay.

What should employers do?

1. Remind themselves about what counts as working time – this includes job-related training, time spent travelling if an employee travels as part of their job, and time spent on call at the workplace.
2. Assess any deductions made – to ensure that the deduction doesn’t bring wage below minimum wage. This could include making deductions for uniform costs or for use of a staff canteen. There are deductions that are allowed, for example, repayment of loans and deductions due to conduct.
3. Keep accurate records – it is a legal requirement for employers to keep records for at least three years for all workers and ex-workers from which they can show what NMW the worker was entitled to and what they were paid. Failure to do so could result in criminal prosecution.