Payroll insight
be established to ensure everyone who has involvement in the essential data transfer (e.g. line managers, team leaders, employees) contribute to compliance. Software is also only one piece of the puzzle – albeit a key piece – and much can and is being done to ensure that it plays its part in compliance. But it can only go so far in coding-out solutions of such a complex nature. The adage ‘rubbish in rubbish out’ continues to hold true in this century. Simon Parsons: The process of checking for NMW compliance in software is the application of a complex formula and extensive configuration rules to hours, pay elements, deductions and also the inclusion of salary sacrifice arrangements. Where appropriately configured, minimum pay compliance can be monitored on known provided data. However, payroll cannot check work time not notified or where the employer has limited understanding of the configuration rules required in relation to what does or doesn’t count for minimum pay
understanding the impact of other payroll elements and time capture that impact minimum pay. Payroll can potentially, assuming the appropriate configuration has been applied, audit the compliance of time and monies paid to ensure that any breaches are identified to enable correction. As failure to pay NMW/NLW is a criminal activity, employers must take a lead in ensuring that they pay at or above the minima. Maria Hartley: Good reporting within HR and payroll software would ease the burden of the checking process enabling the employer to be more compliant, so this is a vital requirement. Richard Blackwell: Some software packages can be set to check for NMW/ NLW compliance and will automatically adjust with operator approval if required. This is ideal. Reporting from other systems can also be useful to identify instances where rates are below NMW. In an ideal world the payroll software should be capable of identifying and correcting NMW breaches. n
Richard Blackwell,
payroll services manager RCS - Care UK
compliance. In the SD Worx service, there are options for minimum pay compliance which (based on the employer specified configuration) applies complex formulae for time and pay (including the impact of relevant deductions and salary sacrifice) to determine the rate paid for minimum pay (not the pay rate), to determine the minimum due and identify any underpayments. Also, there is the capability to correct errors or pay the underpayment amount identified. Employers must ensure that their employment policies, terms and conditions and payroll rules ensure compliance with NMW/NLW. HR solutions can potentially police the base rates being used, but what they cannot deal with is
Equal pay claims
Morrisons is the latest supermarket giant to be hit with substantial equal pay claims L eigh Day, a London law firm, an- nounced in September that it has lodged equal pay claims on behalf of women working in Morrisons’ stores Human Rights Commission suggests is the most effective way of ensuring an organisa- tion meets its equal pay obligations. biggest supermarkets in the country. Emma Satyamurti, partner in law firm
Leigh Day’s employment team, said: “Our clients believe that those working on the shop floor should be paid the same as those in the distribution centres, and a failure to commit to this is not only unfair but unlawful. “This legal action is being taken forward to ensure that the work done in stores and distribution centres is recognised as being of equal value; not the same work, but work of equal value and that those working on the shop floor should be paid the same as their colleagues in distribution.” n
As Morrisons has around 80,000 store staff eligible to claim, the final bill for back pay could be in excess of a billion pounds should their actions be unlawful. Leigh Day is already taking legal action on behalf of 30,000 staff working in Asda, Sainsbury’s and Tesco stores. The law firm believes that employees working in the predominantly male-domi- nated distribution centres are paid consid- erably more than the largely female-staffed stores, a trend that is seen across the
who believe they are paid less than men in the distribution centres. The claims to the Advisory, Conciliation and Arbitration Service have been made while the law firm awaits a response from the high street supermarket chain, which they have written to on behalf of the first group of clients requesting pay and gender information for workers. Leigh Day have also asked Morrisons to confirm if they have carried out an equal pay audit, something the Equality and
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| Professional in Payroll, Pensions and Reward |
Issue 44 | October 2018
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