Minimum wage non-compliance

By Metis HR

11 Dec 2014

Minimum wage non-compliance is often inadvertent, but with 'naming and shaming' of those who breach the National Minimum Wage (NMW) being introduced by the government's Business Innovation and Skills Department (BIS) last October minimum wage non-compliance can have a huge negative impact on your organisation's reputation.

By Metis HR.

If your organisation has pay levels close to the NMW, complicated pay structures or you use zero-hours contracts you may inadvertently at risk of minimum wage non-compliance. Some of the most common ways that employers find that they have minimum wage non-compliance are not realising that travel time between each place of work may count as working time expecting staff to attend training or team meetings just before or just after their paid shift starts deducting the cost of uniforms, training or meals without realising that NMW is calculated after making those deductions not realising that enhanced rates e.g. for weekend work are disregarded when calculating NMW. NMW is calculated on basic pay rates overnight working where staff are sleeping eg in the care sector and staff are only paid for the hours that they are awake and providing care. The time when the care worker is asleep should be paid at NMW We are told by HMRC that minimum wage non-compliance is only prosecuted in exceptional circumstances. It won't come as any surprise to learn though that they take repeated non-compliance, the falsifying of records and obstructing their enquiries are factors that would make it more likely that HMRC will prosecute. What to do? keep accurate and comprehensive records of pay, shifts worked and travel time review for yourself where your vulnerabilities may lie if you find that you have made errors in paying employees put a schedule of repayments in place re-assess the profitability of your organisation once you have reviewed for minimum wage non-compliance and whether and how you might pass on your increased costs

Enjoyed this? Read more from Metis HR

Latest news

1

Burnley firm supports West Midlands control room expansion 3924518a 13fa 4496 9444 47a6934fbb65

Burnley firm supports West Midlands control room expansion

27 Oct 2026

2

Financial adviser makes two appointments David And John

Financial adviser makes two appointments

27 Oct 2026

3

PM+M to sponsor Employer of the Year at Red Rose Awards Red Rose Awards

PM+M to sponsor Employer of the Year at Red Rose Awards

27 Oct 2026

4

What people want before they make a move Mwjan26 111270

What people want before they make a move

27 Oct 2026

5

Footballer turned property tycoon's TV show kicks off Liv Cooke

Footballer turned property tycoon's TV show kicks off

27 Oct 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 17:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Lancashire Finance Leaders Forum: The Autumn Budget in Focus
ian-UmTFcwHLPC0-unsplash.jpg.jpg 29 Oct 2026

Lancashire Finance Leaders Forum: The Autumn Budget in Focus

Farington Lodge Hotel, Stanifield Lane, PR25 4QR

08:00 - 10:00

The PM+M Autumn Budget seminar - East Lancashire
Autumn Budget 2026 LBV 29 Oct 2026

The PM+M Autumn Budget seminar - East Lancashire

Blackburn Rovers Football Club (Premier Suite), Blackburn, BB2 4JF

08:00 - 10:30

Autumn Budget 2026
Lancaster And Morecambe Logo 1 30 Oct 2026

Autumn Budget 2026

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Blackburn Budget Breakfast 2026
LBV Website Events GraphicBudget Breakfast 30 Oct 2026

Blackburn Budget Breakfast 2026

Premier Suite, Blackburn Rovers FC, Blackburn, BB2 4JF

07:30 - 10:30

Chamber Breakfast Networking – November
Lancaster And Morecambe Logo 1 03 Nov 2026

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Funding Unlocked
IMG_3058.jpeg.jpg 04 Nov 2026

Funding Unlocked

Accrington Stanley FC, Accrington , BB5 5BX

10:00 - 12:30

Clubhouse Business Network sponsored by Orca Finance - November 2026
Club House Padel 05 Nov 2026

Clubhouse Business Network sponsored by Orca Finance - November 2026

Clubhouse, Blackburn, BB1 3NT

14:00 - 16:00

The Business Network Central and East Lancashire
12 Nov 2026

The Business Network Central and East Lancashire

Longridge House, Preston, PR3 2TB

11:30 - 14:15

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin