Employers must pay people who do work for them at least the minimum wage if they meet the definition of a ‘worker’ under the National Minimum Wage Act 1998 section 54(3) and provided a specific exemption doesn’t apply.

It is unlawful for an employer to pay a worker less than minimum wage and workers who are concerned they have not been paid national minimum wage can report their employer to HM Revenue and Customs (“HMRC”). Employers can still be reported by ex-employees who no longer work at the business.

Under the National Minimum Wage Regulations 2015, employers are required to keep a record for each person who qualifies as a ‘worker’ that’s sufficient to establish that the employer is remunerating the worker at a rate at least equal to the national minimum wage for six years.

Where HMRC finds a worker has not been paid national minimum wage, HMRC can issue a notice of underpayment requiring the employer to pay arrears. Whilst guidance and legislation omit to address whether there is a time limit for reporting underpayment to HMRC, a notice of underpayment cannot relate to a period more than six years prior to the date the notice of underpayment is served.

This article was provided by Madison Bowyer, an Associate in the Employment Law Group at Arthur Cox NI. 

T:+44 28 9026 5886 
E: Madison.bowyer@arthurcox.com 
https://www.arthurcox.com/