HM Revenue and Customs (HMRC) is writing to 30,000 workers in the Belfast area to raise awareness of National Minimum Wage (NMW) underpayments. These letters set out the current rates of NMW and include a checklist of common errors that employers may make when it comes to paying staff which can result in underpayment of NMW. Workers are asked to report any concerns they have directly to HMRC. Employers should be reminded that whistle-blowers are protected by employment law from detrimental treatment and unfair dismissal. An employer could find themselves in significant financial difficulty should it seek vengeance against a whistleblowing employee.
It is a common mistake for employers to assume that if they are paying staff the hourly rate of pay at the prescribed NMW rates that they are compliant with the law. However, as detailed in HMRCs correspondence, there are various ways in which an employer can underpay NMW, to include if workers are:
What are the risks?
The NMW Regulations are complex and many employers will have inadvertently breached the rules through oversights or mistakes as opposed to de-liberate actions.
Whilst the highest-risk sectors identified by HMRC in Belfast are retail, construction and social care we urge all employers to ensure they are legally compliant.
If an employer is found to have underpaid its workforce they face penalties of up to 200% of the arrears owing to workers and being publicly named and shamed as a non-compliant employer.
Thank you to the Employment Team at Millar McCall Wylie for the content of this article. Should you require advice or assistance in relation to any of the above please do get in touch with Jan Cunningham, David Mitchell or Niamh McMonagle in the Employment Team.
Tel: 028 9020 0050