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

£8.2m Pleasure Beach ride to open in less than two weeks The Aviktas pendulum

£8.2m Pleasure Beach ride to open in less than two weeks

08 May 2026

2

Manufacturer moves to £14m riverside headquarters Opening of GVS Filters Technology

Manufacturer moves to £14m riverside headquarters

08 May 2026

3

Blackburn shopping plan for EG On The Move Zuber Issa, pic provided by EG On The Move

Blackburn shopping plan for EG On The Move

08 May 2026

4

Katie Day takes lead role at Transport for the North Katie Day

Katie Day takes lead role at Transport for the North

08 May 2026

5

World security threats drive strong performance at BAE Systems Typhoon aircraft

World security threats drive strong performance at BAE Systems

07 May 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
LBV128 May/June Magazine Networking Event
Canva - Mag Launch
Networking
19 May 2026

LBV128 May/June Magazine Networking Event

Colne Market Hall, Lancashire, BB8 0HS

08:30 - 10:30

Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Brysdales, Britannia Buildings Drumhead Road, Chorley, PR6 7BX

16:00 - 18:00

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

The Beehive Blackburn, Shadsworth Business Park, BB1 2Q

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Jan/ Feb Networking Event - Talking
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Fire Warden Training
Logo.jpg.jpg
LBV Hub Seminars
11 May 2026

Fire Warden Training

Bell Lancaster, Cleveley House Farm, Miller Brow, , Forton, PR3 1DR

09:00 - 15:00

The Business Network Central and East Lancashire
LBV Hub Networking
14 May 2026

The Business Network Central and East Lancashire

Longridge House, Preston, PR3 2TB

11:30 - 14:15

Research and Knowledge Exchange Festival 2026
Spark 2026 newsletter v3-5 (1).png.png
LBV Hub Seminars
18 May 2026 - 22 May 2026

Research and Knowledge Exchange Festival 2026

University of Lancashire, Preston, PR1 2HE

10:00 - 20:00

How to handle an underperforming employee
Logo.jpg.jpg
LBV Hub Seminars
20 May 2026

How to handle an underperforming employee

The Longlands Hotel, Carnforth, LA6 1JH

08:00 - 10:00

U35 Networking Event
Logo.jpg.jpg
LBV Hub Networking
20 May 2026

U35 Networking Event

The Royal Hotel & Bar, Lancaster, LA1 1YD

17:30 - 19:00

Culture, Community & Commerce in the City # 1 - Northern Dough Co x WASH Studio
8.png.png
LBV Hub Networking
20 May 2026

Culture, Community & Commerce in the City # 1 - Northern Dough Co x WASH Studio

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Preston Freelancer Meet-Up: May
LBV Hub Networking
21 May 2026

Preston Freelancer Meet-Up: May

Society1, Coworking Space, Preston, PR13LT

10:00 - 12:00

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin