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Countdown to National Living Wage implementation

The new National Living Wage (NLW) comes into operation on 1st April 2016. This will operate as a new rate of the National Minimum Wage for workers aged 25 years and above and is expected to have a high impact on the care sector due to the number of low paid workers.

Many Provider’s costs are already under considerable pressure but this will be no defence against underpayment of National Living Wage or National Minimum Wage. The complexities of paying the NMW in the care sector have been regularly hitting the headlines, particularly in relation to the payment of travel time.  

HMRC will be ruthless in ensuring the correct rates are applied. Penalties for non-payment are considerable and include:

  • 100% of the arrears owed, with a maximum penalty of £20,000 per worker.
  • This doubles to 200% of the arrears owed per worker from 1st April 2016.
  • The penalty is halved if paid within 14 days.
  • There are a range of criminal offences, including refusing or wilfully neglecting to pay the minimum wage, with potentially unlimited fines in the most serious cases.

As if that’s not bad enough, there is also the time it takes to be investigated plus the reputational damage.

Users of CallConfirmLive! have all the information at their fingertips to ensure NMW / NLW is paid. To find out how CallConfirmLive! can help you evidence NMW / NLW compliance call us on 0121 308 3010.   

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