Overview

This bill aims to strengthen enforcement of the National Minimum Wage (NMW) in the UK. It introduces stricter record-keeping requirements for employers and mandates that English local authorities ensure their health and social care contractors comply with NMW regulations.

Description

The bill has two main components:

Record-Keeping Requirements:

The Secretary of State must create regulations within six months to amend existing regulations on employer record-keeping. These new regulations will require employers to keep detailed records, including employee names, working hours (including start and finish times and breaks), and hourly rates. The Secretary of State will consult with various bodies including the Director of Labour Market Enforcement and HMRC before finalizing these regulations.

Local Authority Responsibilities:

The bill compels English local authorities to include specific clauses in contracts with health and social care providers. These clauses require providers to demonstrate NMW compliance by providing appropriate records. Failure to provide this evidence or demonstrate compliance will result in a 28-day notice to remedy the situation, with contract termination following non-compliance.

Government Spending

The bill does not directly specify any changes to government spending. The costs associated with developing and implementing the new regulations and enforcing compliance will be borne by the existing government budget.

Groups Affected

• Employers: Will face stricter record-keeping requirements and potentially increased scrutiny of their wage practices. Non-compliance could lead to penalties.
• Employees: Will benefit from improved enforcement of the National Minimum Wage, leading to a higher likelihood of receiving the correct pay.
• Local Authorities in England: Will have new responsibilities for monitoring the compliance of their health and social care contractors.
• Health and Social Care Contractors: Must ensure they comply with the National Minimum Wage or face contract termination.

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