NMW enforcement

The main method of NMW enforcement is via the NMW enforcement team of HM Revenue and Customs (HMRC). They can order payment of arrears (up to six years), fines, and in very severe cases, director disqualification, personal liability and even prison. HMRC operates an online complaints service to help workers claim the NMW: www.gov.uk/government/publications/pay-and-work-rights-complaints. Anonymous complaints are possible. HMRC also “names and shames” non-payers.

Individual Employment Tribunal (ET) claims for the NMW are also possible. The deadline is short and only two years of NMW underpayment can be claimed. (This two-year cap does not apply in Northern Ireland.) In general, workers with straightforward claims for unpaid NMW arrears are likely to be better off asking HMRC to enforce their rights than bringing an individual claim in the ET.