Naming and shaming If HMRC investigates an employer that is breaking minimum wage law they will be issued with a Notice of Underpayment by HMRC. This is a formal notice that sets out the arrears of minimum wage to be repaid by the employer together with the penalty for non-compliance with the requirement to pay workers the minimum wage. An information sheet is given to the employer at the start of the investigation which sets out details about the BEIS naming scheme. The employer will have 28 days to appeal against the Notice of Underpayment issued by HMRC. If the employer does not appeal or an appeal has been unsuccessful HMRC will refer the employer to BEIS for automatic naming under the scheme.
Further details can be found in the policy document on National Minimum Wage and National Living Wage law enforcement .
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Salaried Hours contracts – how up to date is your knowledge? 11 May 2017
Salaried hours contracts continue to come under scrutiny and serve as an opportunity, if one were needed, for us to highlight the importance of remaining up to date with the latest guidance from BEIS.
A news piece in the Telegraph reminds us how costly an error can be caused by underpayments of pay made under salaried hours contracts.
“Clearly this is very disappointing, not least because the vast majority of payments to affected Partners and former Partners relate to technical underpayments rather than actual underpayments of their contractual pay”, said chairman Sir Charlie Mayfield. Employers often make use of salaried hours contracts to provide their employees with a steady and consistent income stream throughout the year where their working hours or weeks may vary either due to seasonal demands or term time working. The latest guidance on calculating the Minimum Wage – which has taken on even greater importance since the increase in hourly rates brought in through the National Living Wage, was last updated in April 2017 – have you taken a look recently?
To be a salaried-hours contract, the contract between you and the worker should set out:
a basic number of hours for which the worker is to be paid (for example 2,000 hours) that the worker is entitled to an annual salary
You do not have to show the total basic hours for a complete year but it is better to do so. However, it must be possible to precisely calculate what the total basic annual number of hours is in relation to the full year.
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Football clubs investigated over apprentice wages 17 May 2017
HMRC is investigating whether academy scholars at Premier and Football League clubs are meeting minimum wage laws
The Telegraph has reported that HMRC is scrutinising the basic salaries paid to academy scholars to decide whether they meet minimum wage regulations.
The investigation by HMRC hit the headlines in April of this year when two premier League clubs were raided in a joint operation with French authorities related to suspected tax fraud committed during several transfers of players.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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