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Falling foul of minimum wage rules

12 February 2019 / Steven Porter , Catherine Robins
Issue: 4683 / Categories: Comment & Analysis
Icy problem

Key points

  • HMRC enforces the NMW legislation on behalf of the Department for Business Energy and Industrial Strategy.
  • Has Iceland’s Christmas savings scheme led the business to breach the rules?
  • Companies that require their employees to wear uniforms or follow a particular dress code should be careful to ensure they adhere to the NMW rules.
  • Government consultation is considering salaried workers and salary sacrifice schemes.

Businesses might expect that if they are trying to ‘do the right thing’ and help their employees to save for Christmas they would not be at risk of a back pay liability and a huge fine from HMRC. However it seems that Iceland Foods could be in this situation. HMRC appears to be claiming that Iceland is the latest in a line of retailers that have fallen foul of the prescriptive and difficult to administer national living wage and national minimum wage (NMW) rules.

The NMW is...

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