Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Employer mistakes with national minimum wage

20 June 2018 / Charlie Barnes , Deborah Parks-Green
Issue: 4652 / Categories: Comment & Analysis
istock-874473666_fmt

Get it right!

KEY POINTS

  • Workers must be paid at least the national minimum wage (NMW) at the correct time for all time worked.
  • There a number of common mistakes made by employers.
  • HMRC proactively polices NMW compliance.
  • Arrears must be paid going back up to six years.
  • Failure to pay the NMW leads to 200% penalties and the employer being publicly named.

In recent years the national minimum wage (NMW) has made the news headlines due mainly to the introduction of the national living wage and several high-profile companies named and shamed for non-compliance.

Paying the NMW may seem straightforward but complex legislation and unclear guidance complicate matters. There are many factors to consider that may result in non-compliance due to technical and genuine mistakes. This is a concern for...

Only subscribers may read the full article

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon