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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
, see all updates

Records, evidence, powers & offences: records

Relevant legislation

The legislation that applies to this page is as follows:

For pay reference periods commencing

* on or after 6 April 2015; National Minimum Wage Regulations 2015, regulation 59
* before 6 April 2015; National Minimum Wage Regulations 1999, regulation 38

General

Employers are legally required to keep sufficient records to show that they are meeting their national minimum wage obligations and paying their workers at least national minimum wage.

Records for national minimum wage do not have to be kept in any particular format, for example, they can be kept on paper or on computer. However the records are required to be kept in a form which enables the information kept about a worker in respect of a pay reference period to be produced in a single document (NMWM12030) and the records must be retained by the employer for a minimum of 3 years beginning with the day on which the pay reference period following the pay reference period to which the records relate ends (NMWM12040).

Whilst the legislation requires the employer to keep and retain records it does not stipulate exactly what type of records must be kept. As long as the records can show that workers have been paid at least national minimum wage for the time that they have worked , the employer can choose to keep their records in any way they so wish. It is entirely possible that employers will be able to use their payroll records to show levels of pay to workers and already have systems to show time worked. The type of business records which may be relevant include;

| * PAYE and/or NI records * contracts of employment * contracts of apprenticeship * training agreements * time sheets * time clocking systems * staff rotas * cash book * bank statements * business accounts * worker’s notice | * expense claim forms * appointment diaries * bookings registers * attendance registers * training certificates and qualifications * documentation regarding funding * job adverts and job offers * staff assessments * health and safety records * disciplinary records * copy of daily average agreement for unmeasured work | ||

Where an employer is operating daily average agreements (NMWM07120) or paying “fair piece” rates (NMWM03130) supporting documentation will be necessary to demonstrate that they are realistic.

Failure to keep sufficient records to demonstrate that at least national minimum wage has been paid is a criminal offence (NMWM12250).