HMRC has responsibility for making sure that employers pay their workers at least the NMW or the NLW. They do this on behalf of the Department for Business, Innovation and Skills (BIS).
This responsibility is normally undertaken during general compliance reviews, however, HMRC will also act on specific information or complaints.
During the reviews, they will not only talk to the employer, but also the workers to ensure that all workers are paid what they are legally due.
HMRC are allowed to ask for:
any information we think will show whether workers are being paid at least the NMW or the NLW explanations of anything contained within records any additional information we need to determine whether the NMW or the NLW has been paidThey are also allowed to visit employers to get the information they need and may need to visit you more than once. they will normally endeavour to make an appointment at a time that is convenient. In addition, they do not have to tell an employer why they are checking their records or give them details of the information we have received. This is provided for in the National Minimum Wage Act 1998.
The issuing of the guidance is very timely considering the high profile cases recently lodged.
The factsheets are:
National minimum wage information for employers - NMW FS1 Carrying out a self-review of the National Living Wage and the National Minimum Wage - NMW2 FS2 Guidance Notes on the Notice of Underpayment - NMW FS3