Sleep in confusion

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  • Savvy_Sue
    Savvy_Sue Posts: 46,024 Forumite
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    If you were being paid NMW for your waking hours, then yes, they have been judged to have been underpaid.

    However, what many companies are doing - quite legally - is averaging ALL hours worked, day and night, and if the AVERAGE rate of pay was NMW (now LW for some workers) or above, then no more is due.

    There is a crisis in residential care brewing ...
    Signature removed for peace of mind
  • humptydumptybits
    humptydumptybits Posts: 2,992 Forumite
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    The 6 years back pay will be interesting though as we're waiting on the mencap case in March and it depends when the 6 years kick in from to be honest

    HMRC are saying it is 6 years from the date you join the SCCS, seems unfair that if an organisation joined promptly they have to go back to 2011 but if your organisation puts off joining till December 2018, the latest date for joining, they only have to go back to December 2012.
  • humptydumptybits
    humptydumptybits Posts: 2,992 Forumite
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    Savvy_Sue wrote: »
    If you were being paid NMW for your waking hours, then yes, they have been judged to have been underpaid.

    However, what many companies are doing - quite legally - is averaging ALL hours worked, day and night, and if the AVERAGE rate of pay was NMW (now LW for some workers) or above, then no more is due.

    There is a crisis in residential care brewing ...

    It is legal and it is the way HMRC are telling them to do it. The other interesting bit is if they underpaid you six years ago they have to now pay that at todays rate. It is all so complicated.
  • dawyldthing
    dawyldthing Posts: 3,438 Forumite
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    HMRC are saying it is 6 years from the date you join the SCCS, seems unfair that if an organisation joined promptly they have to go back to 2011 but if your organisation puts off joining till December 2018, the latest date for joining, they only have to go back to December 2012.

    Has that come out today then? If so it will go back as long as I've worked for them so will get a tidy amount next March
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • humptydumptybits
    humptydumptybits Posts: 2,992 Forumite
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    My employer joined the SCCS (Social Care Compliance Scheme) and I saw the guidelines. If your employer hasn't joined the scheme you can report them to HMRC, they have got till December to do it. If I was you I would ask them what they are doing about the six years. It is a massive review to do, you literally have to go back over pay records for each member of staff who is likely to be underpaid and work out each month. They have to get it done by December so it would be a bad idea for them to leave it till the last minute. Once they complete the investigation they have 3 months to make the payment so the latest date is next March. You will have to pay tax, NI, pension contributions on it and if you have been in receipt of any benefits (tax credits/housing benefit etc) you have to report the payment received for each year, your employer will break down the payments into tax years.

    Good luck and let us know how you get on, I reckon some people are going to get tens of thousands.
  • dawyldthing
    dawyldthing Posts: 3,438 Forumite
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    My employer joined the SCCS (Social Care Compliance Scheme) and I saw the guidelines. If your employer hasn't joined the scheme you can report them to HMRC, they have got till December to do it. If I was you I would ask them what they are doing about the six years. It is a massive review to do, you literally have to go back over pay records for each member of staff who is likely to be underpaid and work out each month. They have to get it done by December so it would be a bad idea for them to leave it till the last minute. Once they complete the investigation they have 3 months to make the payment so the latest date is next March. You will have to pay tax, NI, pension contributions on it and if you have been in receipt of any benefits (tax credits/housing benefit etc) you have to report the payment received for each year, your employer will break down the payments into tax years.

    Good luck and let us know how you get on, I reckon some people are going to get tens of thousands.

    Ah I was wondering (and hoping) it got broke up into the different years as there's less likely I'll pay student loan on the lot whereas if it was all next year I would. I work for a big company and I believe there going through the records as I got a reply the other week and they said they expected to pay it late March next year. I'll be one of them due a heck of a lot of money, but a lot will go on the stoppages. Still can't help but think this court case going on will be another spanner in the works though
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
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