Are you paying the correct minimum wage?

Minimum wage is going to go up again in April. But before you even think about that, it’s worth making sure that you’re actually paying the legally required wage, as it is right now. 

Because plenty of the big companies aren’t. 

At regular intervals, a ‘name and shame’ list gets published, detailing the hundreds of employers found to have underpaid staff, and previous lists have included Adecco, Centrica, Go Outdoors and EG Group. 

All of the above are reputable organisations who you’d assume would have payroll nailed down - certainly it’s unlikely to be standard policy to illegally underpay. 

The reality is that most weren’t flouting the rules deliberately. 

They just got the detail wrong, with errors including: 

 🟦 Missing the moment when someone turned 21 (and became eligible for a higher minimum wage). 

 🟦Not paying for all of the working time, like training, travel between sites, or time spent opening up before a shift. 

 🟦Deductions for uniforms or equipment that quietly pushed pay below the legal minimum. 

But pleading ignorance is no defence. Underpaying results in significant penalties (200% of the underpayment), and of course, the reputational damage of ending up on the name and shame list. 

It’s another reminder that employment isn’t about good intentions, you’ve got to get the detail right. 

So, a few quick questions worth asking today: 

 ➡️ Do your systems automatically flag pay increases when someone moves up an age band? 

 ➡️Are all the hours your people actually work being captured? 

 ➡️Have you checked that deductions (for uniforms, meals, or anything else) don’t tip any employees below the line? 

If you’re not 100% sure of any of the above, we’d recommend checking that now. 

If you need any help, please let us know.