As reported by the BBC recently, the Resolution Foundation has highlighted an increase in the number of companies who are paying their staff below the National Minimum Wage.
This affects 2m people, most of whom are women and young people. In 2018-2019, there were over 3,000 investigations by HMRC into companies paying over 220,000 workers below the National Minimum Wage, a figure which is both shocking and saddening for those of us working in HR.
Whilst the National Living Wage has helped 3.6% of workers receive remuneration that is over 2/3rds of the national median hourly rate, there is still more to be done to ensure all workers receive what they are legally entitled to.
For some organisations, it is purely a case of poor record keeping and genuine errors created by paper-based systems which have caused the issue. Digitising processes such as payroll helps to combat this by highlighting any employees which fall outside the legal requirements not just when it comes to minimum pay, but also tracking hours worked and local taxation.
As HR professionals, we all want workers to be correctly paid, but so often we see legacy systems letting clients down and in today’s fast paced environment it can be difficult to keep up with all the administration work that is required to accurately maintain and check employee records. With CoreHR Payroll solutions, you can set reporting rules to run every time the payroll goes through to flag any employee who is being paid below the minimum, thus avoiding costly mistakes.
All businesses are responsible for complying with national legislation irrespective of size. Failure to do so could result in a fine. If you want to ensure your business is free from errors which could result in a fine, speak to a member of the CoreHR team about our Payroll solutions which can be implemented and running in 30 days.
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