Last week, more than 200 businesses were identified by the Government for not paying workers the correct minimum wage, with penalties of almost £7m handed out by the Department for Business & Trade.
They included major brands such as WH Smith, Argos and Marks & Spencer.
Following this, Steven Mather, a business lawyer with Nexa Law, said this is “almost certainly the tip of the iceberg” and warned small businesses to take note.
Mather said there are four key areas where employers typically fall foul of National Minimum Wage legislation, and has advised companies to look at their processes to ensure they are compliant.
These areas include: believing that all workers are salaried, Salary Sacrifice Schemes, apprenticeships pay, and other deductions.
Mather added: “With HMRC recently receiving £7m in penalties, it is certainly a good time to review your employment practices to see if you are genuinely paying the National Minimum Wage or whether you might fall foul. If major brands can get it wrong, it is highly likely many small businesses are, too.
“The 200 plus firms fined are almost certainly the tip of the iceberg.
“If in doubt, and to avoid an unwelcome letter from HMRC, seek advice from a professional.”
