National Minimum Wage compliance - EPS can support you!

In February, the Department for Business and Trade (DBT) released the most recent list of companies that have breached National Minimum Wage (NMW) regulations and were reported by HM Revenue and Customs (HMRC) to have underpaid employees.

It is of course never a good list to be on, and companies can be penalised for underpayments with a fine of 200% of their value.

Breaches can happen for a number of reasons:

• Deductions can take pay below the minimum wage, e.g. uniform, equipment or salary sacrifice

• Failure to pay for extra hours worked such as additional hours before or after shifts, trial shifts, training

• Failure to increase employees’ pay when they move to the next age bracket and when the new NMW is introduced each April, or leaving apprentices on a lower rate after their first year

• Failure to apply the correct amount regarding employees’ accommodation

EPS can help clients spot any potential problems by providing information on an ongoing basis, such as a report about any employees who may fall below the new minimum wage.

The system offers the ability to model pay increases so the impact of these can be analysed. The annual pay review process raises the rates for any employees who fall below the new minimum rates, while allowing for further increases to be applied as well.

There is also audit reporting available which tracks time and attendance clocking compared to hours sent to payroll, along with weekly controls in place for sign-off.

Please contact us for more information.