Minimum wage compliance checks underway in rural sector

In the farming sector, both the Agricultural Minimum Wage and National Living Wage apply
In the farming sector, both the Agricultural Minimum Wage and National Living Wage apply

The Government has launched a £1.7 million campaign in January this year to ensure that workers know how much they are legally entitled to be paid.

This followed an increase in HMRC’s enforcement budget to £20 million in April 2016 to make more officers available to investigate National Minimum Wage complaints.

HMRC enforces both the National Minimum Wage and the National Living Wage, both of which will increase from 1 April 2017 following an announcement in the Budget.

Now, Chartered Accountants Saffery Champness is warning that a programme of compliance checks by HMRC regarding the minimum wage would appear to be underway in the rural sector, where both the Agricultural Minimum Wage and National Living Wage apply, covering workers in agriculture, horticulture, and other areas such as, for example, beaters’ pay.

In Scotland, the minimum wage payable to agricultural workers is set by the Scottish Agricultural Wages Board.

'Correct wage levels'

Liz Brierley, Partner with Saffery Champness and Head of the firm’s Landed Estates and Rural Business Group says: "HMRC can ask to see records to ensure that the correct levels are being paid, and has the powers to instigate criminal prosecutions or fines in lesser cases, where they suspect that an employer is refusing or wilfully neglecting to pay staff at least equal to the National Minimum Wage, where proper records are not being kept, or where false entries have been made in records.

"We would urge all employers in the rural sector to be aware of the correct minimum wage levels and to ensure that their records are correct and up to date. There can be issues with beaters, casual workers, housekeepers and temporary staff."