Recent Government naming rounds have exposed just how easily employers can fall foul of NMW compliance rules.
- 1,049 employers named
- ~87,000 workers affected
- £30m+ in back pay and penalties
Many assumed they were compliant because they paid well above the minimum wage.
But paying above the minimum doesn’t automatically make you compliant.
So where are organisations getting caught out, and what steps can businesses take to protect themselves?
Join our experts Michelle Keith, COO, and Rebecca Russell, Payroll Product Legislation Manager, for a deep dive into the areas of NMW compliance that can easily be missed.
We’ll explore where problems can arise, how technology can help identify risk, and why accurate data and human judgement remain essential. You’ll leave with steps to strengthen compliance and greater confidence in your approach to managing NMW.
FAQs
What are some of the most common NMW compliance risks?
Risks can arise from areas including unrecorded working time, missed breaks, deductions, salary sacrifice, apprenticeship rates and differences between contracted and actual working arrangements.
Why is accurate working-time data important for NMW compliance?
Minimum wage calculations depend on how much an employee is paid in relation to the time they have worked. If additional working time isn’t recorded or communicated to payroll, it can make it harder to assess compliance accurately.
Can payroll software prevent NMW breaches?
Technology can automate calculations, apply rules consistently and flag potential risks, but it can only work with the information available to it. Human judgement is still needed to investigate alerts, understand individual circumstances and determine which rules apply.
Who is responsible for NMW compliance?
Payroll plays a central role in calculating pay, but effective compliance often relies on information from across the organisation. HR, finance, managers and operational teams may all hold information that affects the calculation.
Why should employers review their NMW compliance processes?
Working practices and employee circumstances can change over time. Regularly reviewing how information is captured, communicated and assessed can help organisations identify potential issues earlier and strengthen their overall approach to compliance.
Is this session for me?
This session is designed for senior leaders who want to understand where NMW compliance risks can arise and how to better protect their organisation, as well as payroll professionals responsible for managing compliance day to day.
