Don’t Get Caught Out by National Minimum Wage Updates

Make sure you don’t fall foul of some common mistakes made by hospitality businesses

Amidst all the turmoil that is Brexit, we shouldn’t forget that increases to the National Minimum Wage come in on 1st April. And with payroll in the hospitality sector being incredibly complex, it’s no surprise that hospitality businesses regularly appear on the Government’s ‘named and shamed’ lists for not paying minimum wage.

Aside from the obvious impact on workers, resolving these issues takes time that people in the hospitality sector generally don’t have – not to mention the potential reputational damage or even prosecution that comes as a result of falling short of the regulations.

Aside from ensuring your payroll systems and processes are robust, you need to make sure that structures are in place to ensure both you and your employees are complying with all governing bodies, including HMRC and the Pensions Regulator. You also need to make sure you have strong, consistent processes in place to ensure your employee’s pay is accurate and arrives on time.

You then need to make sure you don’t fall foul of some common mistakes made by hospitality businesses, including:

  • Uniform requirements that push workers below the minimum wage.
  • Including tips in NMW calculations.
  • Not counting time to change into uniform, team meetings or travel between sites as working time.
  • Not keeping adequate records.
  • Not updating an employee’s hourly rate when their age takes them into a new NMW bracket.

Used in the right way, technology can help remove many of the complexities of complying with NMW requirements. In conjunction with employment law experts, GQ|Littler, we created a ‘National Minimum Wage guide’ covering common challenges like those above, the legal requirements and how technology can ease the burden of compliance.

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