• A quarter of respondents believe the expected increase to the NLW in April 2020 will have no effect on their business, with 10% believing that it will have a big effect • 25% of respondents say that they have already begun recruiting apprentices as a direct result of the Apprenticeship Levy and a further 10% are planning on doing so • The majority of respondents pay their workers more than the minimum rates • Experience of HMRC’s enforcement of the National Minimum Wage (NMW) is not good • Use of zero hours or short hours contracts is not commonplace, with only a quarter of respondents stating that they are used to some extent • 56% of respondents who use flexible employment contracts said that workers tend to work similar hours each week Conclusion Whilst the introduction of the NLW has affected many businesses, the impact on jobs and worker hours has been minimal. Whilst our research shows the NLW has had a positive impact on staff morale, there has been a significant increase in the use of zero hours contracts. Where the number of recruiting, or intending to recruit, apprentices following the introduction of the apprenticeship levy has shown a slight increase, there are those who feel that the apprenticeship levy is simply another form of taxation from which they will not benefit. Every year, and this year is no exception, our members tell us that although they pay above minimum rates, they still experience difficulties when it comes to HMRC enforcement of the minimum wage and understanding government guidance, which still appears unclear and difficult to interpret.
CIPP comment
Thank you to all those who took the time to complete this survey. Open consultation surveys and formal consultation responses can be found under My CIPP / Policy hub on the CIPP website.
The CIPP offers a one day training course covering National Minimum Wage and other worker entitlements. Click here to book or for more information.
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HMRC launch National Minimum wage webinars 04 July 2018
HMRC has produced a series of recorded webinars to help employers check they are paying their employees correctly.
There are four webinars which provide employers and agents with a walk through of HMRC’s approach to minimum wage compliance and provide a guide to carrying out a self-review.
Last year HMRC identified over £15 million in National Minimum Wage (NMW) pay arrears, for over 200,000 workers.
Failure to comply with NMW legislation, can lead to a financial penalty and public naming, so, HMRC has produced these webinars to help employers get it right from the start. HMRC works in partnership with the Department for Business, Energy and Industrial Strategy to promote awareness of the minimum wage and the routes by which workers can make a complaint.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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