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

Record Keeping

The bill requires the Secretary of State to create new regulations within six months, amending existing NMW regulations. These regulations will specify minimum record-keeping requirements for employers, including employee details, daily and total working hours, break times, pay periods, and hourly rates. The Secretary of State must consult with relevant bodies including the Director of Labour Market Enforcement and HMRC before issuing these regulations.

Local Authority Responsibilities

The bill compels English local authorities to include mandatory clauses in contracts with health and social care providers. These clauses require providers to demonstrate NMW compliance using specified records. Failure to provide evidence or to pay the NMW will result in a notice from the local authority to remedy the situation. Continued non-compliance will lead to contract termination.

Regulations Process

The bill grants the power to create statutory instruments for regulations, allowing for flexibility in implementation. These regulations require approval from both Houses of Parliament before enactment.

Geographic Scope

The bill applies to the whole of the UK, with the exception of Section 2 (Local Authority duties) which applies only to England and Wales.

Government Spending

The bill is unlikely to directly increase government spending. However, increased enforcement may lead to indirect costs associated with monitoring compliance and processing any resulting penalties. The exact financial implications are not specified in the bill.

Groups Affected

• Employers: Will face stricter record-keeping requirements, potentially increasing administrative burden and liability for non-compliance.
• Employees: Will potentially benefit from improved enforcement of the National Minimum Wage, ensuring they are paid correctly.
• Local Authorities in England: Will have new responsibilities for ensuring NMW compliance among their health and social care contractors.
• Health and Social Care Contractors in England and Wales: Must demonstrate NMW compliance to retain contracts with local authorities.

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