Recently, employers have reached out after receiving letters from the Department of Business and Trade notifying them that they will soon be publicly named following HMRC inspections from 2019.
The burning questions are: Why has it taken so long, and can we avoid being named?
There has been a significant backlog in naming employers after HMRC inspections, to the extent that during this time some legislative changes have come into force. In some of these cases, employers understandably feel disappointed about being named as they are likely to endure public scrutiny over a technicality, even though legislative changes since April 2020 have meant the same pay arrangements are now compliant.
It has been acknowledged that the complexities of the legislation resulted in numerous unintentional breaches and substantial payouts due to these types of technicalities. However, all employers will continue to receive the same treatment, regardless of their intent or the reason for a breach.
The Government states there is an opportunity to submit written representations to appeal being naming. However, the reality is that these submissions are rarely accepted, as a strict stance is maintained on what the Government deem to be in the “public interest.”
The key is to avoid been in this position.
So, what steps should employers take to stay out of the spotlight and protect their reputation?
- Avoid complacency, NMW rules are complex, and unintentional mistakes are surprisingly common.
- Partner with an NMW expert who can help you navigate the complexities.
- Use this opportunity to assess your policies and procedures.
- Ensure that your practices align with your documented policies.
- Address weaknesses to minimise financial and reputational damage.
If you have any questions about NMW or HMRC enquiries, do not hesitate to reach out.