21 October 2024
The Department for Business and Trade (DBT) have released research into the enforcement and compliance of the National Minimum Wage (NMW) in the 2022-2023 financial year.
The analysis looks at the number of cases closed, the arrears reclaimed and the future of DBT and HM Revenue and Customs’ (HMRC’s) compliance action.
Of not to employers is the assessment of the geographical compliance approach, which follows three steps:
- Informing the population
- Supporting employers
- Targeted enforcement
During phase 2, high risk employers are offered a support call where risk areas can be identified. If issues are found, employers can then make a voluntary declaration and will not receive the usual sanctions: Notice of Underpayment or naming.
Other key findings in the report include:
- HMRC closed almost 3,200 cases with over 900 closed with arrears
- £13.66 million in arrears was identified for over 108,000 workers
- HMRC issued 750 penalties totalling £13.72 million
- nearly 12 million workers reached by targeted communications campaigns
- targeted enforcement continued to be the primary method of identifying arrears, accounting for 74% of closed cases, up from 71% in 2021 to 2022.
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