How should businesses ensure national minimum wage compliance?

by | Apr 18, 2024

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How should businesses ensure national minimum wage compliance?

Chris and LACE payroll experts Adrian Axtell and Sara Thompson discuss the challenges raised by the national minimum wage breach on this podcast episode. After delving into recent press coverage around companies facing allegations of underpaying their employees, the conversation moves on to the payroll teams’ responsibility in ensuring compliance and explores strategies for businesses to address this issue.

What challenges do payroll teams face?

Our speakers highlighted the importance of timekeeping records that are accurate, as well as challenges such as variations in work hours that make it difficult for employers and employees to calculate their pay checks accurately. Additionally, time spent on training needs to be accurately tracked to ensure compliance with minimum wage laws. The discussion also touches on the impact of policy decisions, such as salary sacrifice arrangements, which can inadvertently lead to breaches in minimum wage compliance if not properly managed.

It has become crucial for businesses to conduct thorough assessments of their payroll processes and implement measures to mitigate risks. Furthermore, a collaboration between payroll vendors and organisations is necessary to ensure systems are configured for compliance with HMRC regulations. Additionally, regular payroll health checks are recommended to identify and address areas of concern, emphasising the significance of governance, risk management, and data technology in achieving compliance.

Overall, the discussion underscores the multifaceted nature of national minimum wage compliance. Listen now for proactive steps you can take to uphold ethical and legal standards while prioritising employee welfare and ensuring minimum wage compliance.

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