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HMRC internal manual

National Minimum Wage Manual

After notice of underpayment issued: employer asks workers to agree to payment by instalments

Prior to a case being accepted for civil proceedings, where a worker notifies a NMW Officer that the employer has offered to pay arrears by instalments, the NMW Officer must tell the worker that HM Revenue & Customs cannot advise them about accepting any instalment arrangement and that we would be willing to proceed with enforcement action on outstanding arrears. However, ask the worker to advise you of any agreements they make with their employer and the amount and dates of any payments.

If the worker enters into an informal instalment arrangement with the employer, any payments made to them will reduce their outstanding arrears. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

If the worker advises you that he has entered into a Compromise Agreement (NMWM05370) with his employer, you should take action as at NMWM14160.