COMPLIANCE
have taken part in a call so far has been extremely positive. Payroll representatives can also join the employer support call to assist their client. Common causes of minimum wage underpayment The minimum wage isn’t just about making sure the correct hourly rate is paid – deductions and unpaid working time can pull workers below the minimum hourly rate. Below are some of the common issues that can result in workers being underpaid: Deductions from pay for items or expenses connected with the job Deductions made from a worker’s pay for expenses which relate to their job reduce their pay for NMW purposes. This could lead to workers being
underpaid. Examples of these expenses include uniform, tools or equipment needed for the job. Employers often require workers to wear specific uniforms or items of clothing connected with their role. If employers don’t provide these, but require workers to wear specific items, any deductions or costs to the worker for those items will reduce minimum wage pay. It doesn’t matter whether workers buy these uniforms or items of clothing from the employer directly or from a third party.
before or after a shift is due to start or end l travelling for business or training l training l on standby at or near their place of work. Workers must be paid at least the NMW for all the working times listed above. n Further information There’s more information on GOV.UK: l For guidance about paying the NMW correctly:
https://ow.ly/kKXw50QhjJC https://ow.ly/o88c50QhjKp
Paying workers for all the time they’ve worked Workers must be paid at least the NMW for all their time worked. It’s considered working time if they are:
l For voluntary declarations of mistakes made by an employer: https://ow.ly/TUGB50QhjLv l HMRC’s pre-recorded NMW webinars are available on GOV.UK, including ‘ How to avoid common mistakes ’, ‘ Record keeping ’ and ‘ What to expect from a HMRC check ’. These
can be viewed at any time: https://ow.ly/lvjI50QhjMp.
l at work and required to be at work – this includes any time spent carrying out tasks
Rates from pay reference periods beginning on or after 1 April 2023:
Age
Under 18
18-20
21-22
23 and over
During the first year of apprenticeship
£5.28
£5.28
£5.28
£5.28
After completing the first year of apprenticeship
£5.28
£7.49
£10.18
£10.42
Before / after the apprenticeship starts / ends and minimum wage rates for non- apprentice workers
£5.28
£7.49
£10.18
£10.42
Rates from pay reference periods beginning on or after 1 April 2024:
Age
Under 18
18-20
21 and over
During the first year of apprenticeship
£6.40
£6.40
£6.40
After completing the first year of apprenticeship
£6.40
£8.60
£11.44
Before / after the apprenticeship starts / ends and minimum wage rates for non-apprentice workers
£6.40
£8.60
£11.44
For previous rates, please go to GOV.UK and search ‘National minimum wage and national living wage rates’.
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
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