Don't be an April Fool! The Minimum Wage checklist

psimonparsons

April 4

1st April 2024 National Minimum Wage uplift

The 1st April 2024 sees the introduction of a significant uplift in the National Minimum Wage (NMW) and National Living Wage (NLW) pay rates which will benefit a significant number of employees.

So when do the actual rates apply from?

It is a misunderstanding of the regulations to think that the new rates apply for working days from 1st April 2024.

The reality is that the determination is governed by the start of the relevant pay reference period. So the new rates officially apply in relation to judging when the pay rate apply is where the start of the period falls on or after 1st April 2024.

So how does an employer ensure they comply with minimum wage obligations?

The HMRC publish a checklist for employers.

This outlines the areas where employers are found to be breaching NMW requirements:

Deductions for work related expenses - Deductions from pay and payments by workers that reduce minimum wage pay)
Deductions for the employers benefit - Deductions or payments for the employer's own use and benefit
Failure to pay additional time - Working hours for which the minimum wage must be paid
Failure to pay time when at the workplace and required to be available - Working hours for which the minimum wage must be paid
Travelling time - Time spent travelling on business
Training - Working hours for which the minimum wage must be paid)
Work during Sleep-in shifts
Incorrectly applying the Accommodation Offset
Not really an Apprentice
Apprentice rate before starting the Apprenticeship
Aged 19 or over after completing the first year of their Apprenticeship
Paying for training or studying as an Apprentice
Applying 1st April increase - National Minimum Wage rates
Moving to age band 18 and 21 - National Minimum Wage rates
What is not minimum wage pay
Interns and work experience
Excess hours for Salaried workers
Failure to understand Types of work

Opinion

The application of National Minimum Wage and National Living Wage is more complex than many employers understand. Many believe that it is all about the hourly rate paid, however, the reality is that not all pay is NMW and not all work time is always paid, yet the relevant NMW pay received divided by all working time whether paid or unpaid may determine whether an employer has breached National Minimum Wage obligations.

Breach by an employer result in being named and shamed by the U.K. Government and may also result in criminal prosecution.

PAYadvice.UK 4/4/2024