A checklist for employers

A checklist of common causes of minimum wage underpayment with links to relevant sections of the guidance.

  1. Making wage deductions or taking payments from workers, for items or expenses that are connected with the job. See Deductions from pay and payments by workers that reduce minimum wage pay)

  2. Making wage deductions or taking payments from workers for the employer’s own use or benefit where the employer is free to use that money in any way they wish. See Deductions or payments for the employer’s own use and benefit)

  3. Failure to pay for any additional time added on to a worker’s shift, for example team handovers between shifts or time spent passing through security checks on entry and exit. See Working hours for which the minimum wage must be paid)

  4. Failure to pay a worker for any time during their shift when they are at the workplace and required to be available for work, (even if no work is being provided at that time during their shift). See Working hours for which the minimum wage must be paid)

  5. Failure to pay a worker for any travelling time. See Time spent travelling on business.

  6. Failure to pay a worker for any time spent training. See Working hours for which the minimum wage must be paid)

  7. Failure to pay sufficient money for any time worked during a sleep-in shift. See Sleep-in shifts)

  8. Incorrectly applying the minimum wage accommodation offset when an employer provides living accommodation to a worker. See Accommodation Offset)

  9. Paying the minimum wage apprentice rate when the worker isn’t a genuine apprentice. See Apprentices)

  10. Paying the minimum wage apprentice rate before a worker starts their apprenticeship or after it ends See Apprentices)

  11. Continuing to pay the minimum wage apprentice rate to apprentices who are aged 19 years or over when they have completed the first year of their apprenticeship. See Apprentices)

  12. Failure to pay an apprentice for the time they have spent training or studying as part of their apprenticeship. See Apprentices)

  13. Failure to apply the annual increase to minimum wage rates that come into effect on 1 April. See National Minimum Wage rates

  14. Failure to apply the correct minimum wage rate when workers move from one age band to another at ages 18, 21 and 23 years old. See National Minimum Wage rates

  15. Including an element of pay that does not count towards a worker’s minimum wage pay, for example an extra premium for overtime or tips from customers. See What does not count as pay for minimum wage purposes)

  16. Failure to pay the minimum wage to workers who are entitled to it, for example under some work experience, intern and work trial arrangements. See Interns and work experience)

  17. Excess hours worked by salaried-hours workers, beyond their basic set hours, causing underpayment of minimum wage typically in the last pay reference period. See Salaried hours work).

  18. Failure to distinguish correctly between different types of worker (salaried, time, output and unmeasured). See Types of work)

If you are in any doubt you may wish to contact the Acas helpline on 0300 123 1100 Monday to Friday 08:00 – 18:00 for free, impartial and confidential advice. If your query is complex, Acas will transfer you to the National Minimum Wage team at HMRC.