30-03-2020

BEIS last published a list of those employers who had underpaid their staff in July 2018, after that date there was nothing but silence on those employers who had been found guilty of not paying their staff at the correct rate. So! From April 2020 a revised scheme will be implemented, the scheme took into consideration concerns from various Ministers and the Director of Labour Market Enforcement.

The Notice of Underpayment (NoU) will still be issued by HMRC and penalties for underpayments remain. However, where this differs from the old scheme is this:

  • At the start of the investigation an information sheet about naming and shaming will be given to the employer
  • There will be a period of 28 days where the employer can appeal against the NoU
  • Where the employer does not appeal of the appeal is unsuccessful, the employer will be referred to BEIS for consideration to be named. This will only happen once HMRC have received official notification that the case is closed.
  • Employers will be considered for the list where they owe as a minimum £500 to their workers.
  • The £100 rule will apply to those employers where in the previous 6 years the employer had been issued with other NoUs.
  • If there is an outstanding Labour Market Enforcement Order or an Undertaking
  • Has an unspent conviction of an NMW offence.

The onus is on the employer to get it right and a regular audit of the payroll where the national minimums are in force should be undertaken. This audit should be no longer than one calendar month.


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