Do you need someone to help you with a national living wage audit? If so, our experienced solicitors and minimum wage experts are hugely experienced at conducting and advising on national living wage audits for employers. Get in touch with us today on 02920 829 100 for a free initial chat to see how we may be able to help you.
The National Living Wage is the name given to the national minimum wage rates for employees and workers aged 21 and above. They are updated every year on 1 April. For employees and workers aged below 21, they will be entitled to the national minimum wage. Again, the national minimum wage is updated every year on 1 April.
An audit is the only comprehensive way of ensuring compliance with the national minimum wage regulations. NMW Compliance is becoming a very relevant issue for employers with HMRC officers regularly contacting employers to check up on whether they are paying the national minimum wage. It will help an employer enormously if it can inform HMRC compliance officers that it has already undertaken an audit into payment of the national minimum wage. Better still, an audit by an independent third party (e.g. by solicitors who are experienced in matters relating to minimum wage matters) will be even better.
On the face of it, employers paying at the rate of the minimum wage would seem a straightforward issue. However, things get complicated significantly by factors that employers often overlook. For example, deductions for things like uniforms from workers’ wages, unpaid training time, overlooking employee birthdays, the effect of childcare vouchers, missing the annual increase in the minimum wage, using the wrong pay reference period, and the effect of salary sacrifice schemes can all cause unintended non compliance.
Failing to meet your NMW compliance obligations can result in a criminal offence and a maximum penalty of £20,000 per employee or worker. These are intended to deter employers from non compliance. Non compliance can also result in employees or workers bringing Employment Tribunal claims against their employers. The defences for an employer can be extremely limited, so that’s why the whole issue needs careful consideration.
You should check the Government’s website for the very latest national minimum wage rate. To avoid any visits from HMRC compliance officers, ensure that you consider the correct pay periods and apply correct rates to workers pay.
They say that all employers should pay employees and salaried workers at least the national minimum wage.
To speak to one of our solicitors today, contact us on 02920 829 100 or by using our online contact form here.