National Minimum Wage investigations

28 February 2017

In recent news it was revealed that another household-name company had breached the National Minimum Wage Act 1998. Argos was fined £1.5 million and ordered to pay back-pay of £2.4 million to current and former staff. This is not the first time a large employer has been “named and shamed”. Debenhams, Monsoon Accessorize and Brighton & Hove Albion FC are amongst previous companies highlighted by HMRC.

We have looked in to these matters for corporate clients who were very surprised to have been investigated. Given the ways in which work can be “measured” and the complex calculations that need to be factored in for different workers (particularly atypical workers whose remuneration can vary as a result of different factors), it can be extremely time-consuming to gather the paperwork to demonstrate National Minimum Wage (NMW) compliance. The onus is on the employer to demonstrate compliance over the period in questions – which may span years.

We have produced both a guide to NMW compliance and a summary of our NMW experience – both of which are on the website.

If you would like to speak to us about an internal audit or a potential or live investigation then contact us directly. We will deal with your enquiry discreetly and can work to your timeframe.