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It pays to get the wage bill right when it comes to the National Minimum Wage and the National Living Wage. A failure to do so, could lead to HMRC the relevant enforcement body taking action, which can include service of notices of underpayments penalties, “naming and shaming”, recovery of underpayments through litigation and even criminal prosecution. Additionally, workers can bring unlawful deduction of wages claims in the employment tribunal.
On 21 June 2023, over 200 employers from small business to big household names were identified as being in breach of the minimum wage rules. The government has confirmed that those in breach were ordered to repay workers and face penalties of around £7 million in total.
The majority of issues arose from pay being deducted from wages incorrectly, workers not being paid correctly for working time and incorrect apprentice rates being paid.
Is your business compliant?
To ensure businesses are compliant there needs to be a thorough understanding of the rules:
Do you know what constitutes working time for the purposes of establishing if your business is paying its workers the correct wage?
Do you know when deductions or payments cannot be made from wages because they reduce the wage to below the minimum wage rate?
Do you know what elements of pay and benefits do not count towards minimum wage?
Do you know if you are paying the correct rates for the various categories of workers and apprentices?
If you don’t know the answers, then your business may be at risk of breaching the rules. If you want to get it right, please contact us on 08081 729 322 for a no obligation discussion.
FG Solicitors are experts in helping its clients to safeguard their businesses from legal, financial and reputational risks so they have greater certainty over their commercial outcomes.
WELCOME TO A MORE CONFIDENT FUTURE!
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This update is for general guidance only and advice should be taken in relation to a particular set of circumstances.