As an employer, you are responsible for ensuring you pay the National Minimum Wage and National Living Wage. The following top tips will help you to understand your main responsibilities.
- Know who should be paid the minimum wage: Most people above compulsory school age working legally in the UK are entitled to be paid at least the minimum wage. Workers are entitled to the minimum wage whether or not they have a written employment contract. See who should be paid the minimum wage?
- Understand what should be included in minimum wage pay: What should be counted as minimum wage pay varies depending on several factors. For example, benefits in kind such as meals or fuel do not count towards it. See what is included in minimum wage pay?
- Keep sufficient minimum wage records: You are legally required to keep sufficient records to show you’re meeting minimum wage requirements. For many employers existing payroll and business records are appropriate. These records can be used if a dispute occurs – it is your responsibility to prove you are meeting requirements. See National Minimum Wage and National Living Wage – record keeping.
- Be aware of what is classed as a criminal offence: Criminal offences relating to the minimum wage include refusal or wilful neglect to pay it and producing false records or information. See National Minimum Wage and Living Wage - criminal offences.
- Keep up-to-date with minimum wage rates: Changes to the National Minimum Wage and National Living Wage rates take place in April each year. It is your responsibility as an employer to ensure you are paying the correct rate. See current National Minimum Wage and National Living Wage rates.
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