National Minimum Wage compliance in relation to pay advances and loans

The government has issued a bulletin providing advice for employers regarding compliance with the National Minimum Wage (NMW) framework, particularly with regard to the effect under that framework of pay advances and loans to workers, in the context of the coronavirus pandemic.

The bulletin sets out how the practice of an employer making such pay advances or loans sits with continuing compliance with their obligations to pay the NMW. Nothing in the advice is new, but its guidance is useful clarification for employers at the present time.

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