National minimum wage – change to record-keeping requirements

Employers and advisers should note that with effect from 1 April 2021 National Minimum Wage (NMW) records should be retained for six years, instead of three years, as previously required. The change will assist HMRC in carrying out its inspections.

The new requirement has been introduced by The National Minimum Wage (Amendment) Regulations 2021, which amends Regulation 59(8) of the National Minimum Wage Regulations 2015. The required records include:

• The employee’s name and employment detail
• The time period covered by the records
• The total working time for each day worked
• Work start times and finish times
• The length of any breaks taken
• The total working time for each pay reference period, and
• The hourly rate, calculated in accordance with regulation 7 of the 2015 Regulations.

It is important to note that the extended record keeping period applies to existing records that the employer was already required to keep prior to the new regulation coming into force. Therefore, for example, records in relation to April 2018 must now be kept until April 2024.

Employers are legally required to keep sufficient records to demonstrate that they meet their NMW obligations and pay all their workers at least the NMW rates, so the extended record retention requirement makes it more important that proper records are kept.

Get in touch with our expert team if you require any help or advice.