National minimum wage: overview

The National Minimum Wage Regulations oblige employers to pay eligible workers at a minimum rate consistent with that set by the government. There are five steps to check whether an employee has been paid sufficient.

Provide minimum wage information for employees

Employers should provide information to workers on the following:

General information on the national minimum wage rates and exemptions
Information on the worker's right to access to records if they suspect underpayment

Additionally, non-hours workers are entitled to information regarding:

The number of ascertained hours worked
The amount of total payments toward the national minimum wage

Keep records for minimum wage

Employers must keep pay records 'sufficient to establish that [the worker] is remunerated at a rate at least equal to the national minimum wage.'

For many workers present pay records will suffice, but for those whose wages are near the level of the national minimum extra recording should provide the following:

The identity of the worker
The amount of any deductions or reductions
Payments not part of the national minimum wage calculations
Deductions or payments for accommodation
Total amount of national minimum wage pay
Total amount of hours worked or ascertained hours or absences
National minimum wage rate the worker is entitled to
Copy of agreements on training or ascertained hours
Any benefits received by the worker
Any absences e.g. Rest breaks, sick leave, holidays
Travel during working hours
Proof of payment e.g. Bank statements

Workers have the right to see the records of the national minimum wage calculation and hours worked within 14 days if they have reasonable grounds for believing that they are not being paid at the correct rate.

The regulations require that records be easy to collate and kept for a minimum of three years in such a way that the information about a worker in respect of a pay reference period may be produced in a single document. They may be kept on computer.