Following a number of high profile cases, we recap on National Minimum Wage rules
A ruling in July stated that employees are not entitled to the National Minimum Wage (NMW) if they are working a ‘sleep-in’ shift unless they are actually working. The ruling marked a significant change to this rule. The care sector was enormously relieved with this ruling but an appeal has been lodged and is yet to be decided. More is likely to follow on this!
Employees who reported non-payment of the NMC to HMRC increased by 134% in the last year, resulting in employers receiving fines of up to 200% in arrears for NMW underpayments. Nearly 240 employers were named and shamed in July and approximately £1.4 million was paid out to 22,400 workers.
A common reason employers get caught out is that they deduct uniforms and other expenses from employees’ wages, which means that the employees then earn below the NMW. Another common reason is failure to pay for travel time which is an expectation of a job.