Managing your responsibilities under the National Minimum Wage (NMW) legislation is much more complex than simply paying a worker the correct rate per hour. There are numerous areas employers must consider to ensure compliance with the rules and avoid potential reputational damage due to the Government’s public naming and shaming scheme.
This guide is not exhaustive but will help you understand the main difficulties many employers face when complying with NMW rules and provide you with key insights of the areas you potentially need to address.
Often, we come across employers who believe they pay workers sufficiently above NMW, but are unaware that the minimum level depends on a number of factors. In extreme cases, the minimum amount could be in excess of £45,000 per annum!
From 1 April 2024, the National Living Wage (NLW) will be extended to apply to workers aged 21+ and is increasing to £11.44 per hour. Therefore, many employers will benefit from taking proactive steps to assess their NMW compliance risk, particularly given the increase in HMRC enforcement activity.
If you have any questions regarding your NMW position and require assistance, please do not hesitate to get in touch with Siobhan Waters or Dale O’Reggio.
Steve Talbot