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  • Overview

    Partner, Susanna Rynehart from our Employment team speaks with Retail Gazette about what employers should do or consider, in order to be compliant with National Minimum Wage legislation.

    Susanna said, “The best way for an employer to protect its position is to conduct a full review of its pay roll and contracts of employment to identify potential risks and pitfalls.”

    “If an employer discovers that it’s paid a worker below the legal threshold then it must take immediate steps to pay any arrears."

    Susanna continued by saying that retail employers also needed to ensure they kept records proving they were paying the NMW for three years, especially when HMRC have the right to carry out checks at any time.

    “Employers must also be aware of the risks of offering staff discounts that are taken off wages for things that are bought for the job,” she said.

    As an example, she referred to the way fashion retailer Monsoon grabbed headlines last  year when its wages went below NMW because they they offered staff discounted clothes to wear as a uniform.

    “The store had to pay £104,508 to 1438 employees following a HMRC clampdown,” Rynehart said.

    “To avoid making mistakes like this, employers should carry out a review of their pay and working practices as well as their uniform and benefit packages to ensure that staff are paid the national minimum wage if there are any deductions.”

    The full article is available online, first published by Retail Gazette on 14 September 2016: How can retailers avoid HMRC trouble when it comes to National Minimum Wage?

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    Employment

    We act for businesses of all shapes and sizes and in many different sectors. Our advice covers all aspects of the employment relationship, helping to settle disputes, defending employment tribunal claims and providing immigration compliance audits.

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