AROUND one in every 100 workers in the UK isn’t being paid the national minimum wage – which is unlawful and actionable.
That equates to 366,000 workers according to the Office for National Statistics.
From April this year, the national minimum wage is £11.44 for those aged 21 and over; £8.60 for 18 to 20-year-olds; and £6.40 for under 18s. Previously the higher adult rate only applied to those aged 23 and over.
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The Low Pay Commission (LPC) estimates around 1.6 million workers were paid at or below the minimum wage in April 2023 – around 5% of all workers in the UK.
The LPC suggests 54% of jobs paying at or below the minimum wage are in retail, hospitality, cleaning and maintenance. Those in the private sector, part-time employment, students, temporary work are more likely to have a minimum wage job.
The new Labour government has announced plans to introduce a “genuine” living wage and remove age bands so everyone is paid the same rate, regardless of age.
The LPC has been asked to factor in the cost of living when it advises on future minimum wage rates, so we may see a more significant rise next April.
If the minimum wage is not being paid, an employee or worker can raise a formal complaint – a “grievance” – with their employer. If that doesn’t resolve things a worker has two options.
They can complain to HM Revenue and Customs (HMRC) or make a claim to the employment tribunal. HMRC has an enforcement role in relation to the minimum wage.
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Complaints to HMRC can be anonymous. Third parties like a family member or a friend can also make a complaint.
If HMRC finds an employer has not paid the minimum wage they can issue a notice to pay money owed, going back up to six years. They can also issue a fine of up to £20,000, initiate criminal legal proceedings and arrange for the name of the employer to be made public.
A complaint to HMRC can be submitted online at www.gov.uk/government/publications/pay-and-work-rights-complaints
Alternatively, an employee or worker can make a claim to an employment tribunal. A claim can go back two years. There are strict time limits and a claim has to be raised within three months minus one day from the most recent failure to pay the minimum wage.
The 1996 Employment Rights Act entitles any employee or worker with the right to a written statement of employment particulars. This should include rates of pay, hours, job title, and benefits.
A tell-tale sign that an employer isn’t paying the minimum wage is a failure to provide proper pay slips.
The 1996 Act requires employers to give employees and workers payslips from their first payday. Workers include people on zero-hours contracts and agency workers.
A payslip must include the “gross amount’ of pay before deductions and the “net amount” – this is pay after deductions for tax and national insurance.
If a worker does not get their payslip when expected, they can raise a formal grievance with their employer.
If a worker still doesn’t get a payslip or the written terms of their employment, they can make a claim to an employment tribunal.
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