We jointly ran an event as part of the East Midlands HR Network recently where I listened to an insightful seminar, delivered by Chris Robson and Eva Higgins from PwC, on the National Minimum Wage (NMW).
As an employment lawyer it was particularly interesting listening to their experiences in dealing with NMW issues from a slightly different perspective and hearing examples of their practical experiences dealing with HMRC on this issue on behalf of their clients.
The seminar was food for thought for employers (and an employment lawyer) on some of the practical issues that can emerge. Although the basic premise of the NMW is straightforward, the seminar highlighted how it is far easier to fall foul of the regulations than is widely known.
Issues can arise such as the cost to employees of purchasing compulsory uniforms, the effect of irregular working patterns or the use of banked hours where employees receive a fixed salary or the potential impact of payments made to volunteers during a work placement.
It was a useful reminder to employers to make sure you are not caught out by a technicality and to speak to your payroll department or accountant about these tricky areas. It’s also worth remembering that employers who fall foul of NMW, in addition to being fined can be “named and shamed” online as part of HMRC’s enforcement process.
Posted on April 26, 2018