Employers – NMW
Employers are required to pay their workers at least the National Minimum Wage or the National Living Wage (referred to collectively as NMW below). Those rates are:
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice|
Whilst it may seem a relatively simple task to comply with the applicable rates, the regime is very complex and has caused a number of large companies to unwittingly fall in breach. Companies such as Monsoon Accessorize, Argos, Debenhams, H&M, and Welcome Break are a few of the well-known names that have reportedly been held in breach.
Whether a worker has received the NMW will depend on their average hourly rate. This is calculated on the basis of:
Employers must retain relevant records of the hours worked and payments made to their workers.
Failure to pay the NMW may lead to enforcement by HMRC (civil courts/Employment Tribunal), prosecution by the CPS (criminal) and/or enforcement by the worker(s) (civil courts/Employment Tribunal).