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HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
, see all updates

After notice of underpayment issued: introduction

Relevant legislation

The legislation that applies to this page is as follows:

* National Minimum Wage Act 1998, section 19

A Notice of Underpayment tells the employer they:

  • must pay all the arrears to the workers named on the notice within 28 calendar days of the date of service (counting the date of service as day 1);
  • must pay the penalty to HM Revenue & Customs within 28 days of service
  • can pay a reduced penalty in certain circumstances (NMWM14050)
  • can appeal against the notice to a Tribunal (In England, Scotland and Wales, an Employment Tribunal and in Northern Ireland, an Industrial Tribunal) and that the time limit for doing so is 28 calendar days from and including the date of service.

The action to take after a Notice of Underpayment has been issued depends on:

  • whether the notice can be shown to have been correctly served (NMWM14020)
  • whether the employer pays all the arrears to the workers (NMWM14040 )
  • whether the employer pays all the required penalty (NMWM14050)
  • whether the employer appeals the notice to a Tribunal (NMWM02100)

When a Notice of Underpayment is issued the arrears on the notice represent the Department’s final view of the arrears (NMWM13030) unless:

  • the notice was not served and needs to be served again (NMWM14030), or
  • the notice is withdrawn (NMWM14220), or
  • the notice is withdrawn and replaced (NMWM14230).