Update to National Minimum Wage Regulations – record-keeping requirements

26 March 2021

Payroll professionals should be aware of the National Minimum Wage (Amendment) Regulations 2021, as a new requirement for employers to retain records for National minimum Wage (NMW) enforcement purposes for a period of six years, as opposed to three, has been introduced.

The Regulations amend the National Living Wage (NLW) and NMW rates for use from 1 April 2021. The NLW age limit has been lowered so that workers aged 23 or over will now qualify for it, and the rates applicable to each of the other NMW age brackets have also been altered. Additionally, the accommodation offset amount has been uplifted.

The period of time for which an employer must retain records for the purposes of NMW enforcement will double (from three years to six), following a recommendation from the Director of Labour Market Enforcement (DLME). This also ensures that the length of time records must be kept by employers is aligned with the period of time for which employers could be issued with a notice of underpayment in relation to underpayment of the NMW.

This extension also applies to records made prior to the instrument coming into force (1 April 2021), where employers were already required by regulation 59 to retain the records immediately before the instrument coming into force.  


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