HMRC National Minimum Wage (NMW) enforcement campaign

The campaign consists of HMRC issuing a series of letters to highlight and promote common NMW compliance risk areas, which in effect is giving the employer an opportunity to rectify any NMW errors without incurring a 200% financial penalty or being named in the media should enforcement action be taken.

There are a series of 3 letters:

• 1st contact: Advising employer to check their NMW compliance processes and provides a NMW checklist.
• 2nd contact: Offer of a telephone call to provide support with their review (typically a couple of weeks later).
• Final contact: HMRC issues an opening letter for a formal review if appropriate (a few months later).

It is advisable that employers do not ignore these letters and seek advice at the earliest convenience due to serious repercussions for getting NMW wrong.

This is an opportune time to review your NMW compliance processes and controls, even if the business has recently been subjected to a NMW investigation, as HMRC are following up on their closure recommendations and taking follow-up action as applicable. Organisations found to be in breach of the NMW requirements will be liable to repay all underpayments to current and former employees involved for up to a six-year period, face fines of 200% of the amount underpaid and then be named in the media.

Get in touch

If your business needs any support in relation to NMW, please reach out to our NMW lead, Jane Gilmore, who has extensive experience of advising organisations with their NMW compliance and defending them from HMRC where appropriate as well as working with the business to develop commercially driven strategies to mitigate any risks identified.

Get in touch