I have recently taken over a clients affairs from another accountant. They employ 3 people including one girl. Following her 22nd birthday in February, and due to an oversight, her wages became less than the national minimum wage.
Following an unrelated dispute with my client she began a tribunal case, which she later dropped and returned to work. Her representative also contacted the NMW office, who in turn contacted the client, and a calculation has been made and the client has agreed to pay all the arrears due once the calculation is agreed by the NMW officer. (there is some dispute as to her employment status early on (ie whether she was an apprentice or not). Also all the calculations for tax and NI will be made and the amounts due will declared and aid to HMRC. (I have no idea why she was omitted, she was even paid by online bank transfer and therefore detailed on the bank statements every week)
However, the NMW officer is coming to review 36 months of wage records. I now have these from the previous accountant but there is a significant piece of information missing. The hours worked by each employee is not documented anywhere. There are no time sheets, clocking on cards, contracts of employment etc.
How will the NMW officer deal with this as it will be impossible for him to ascertain if the national minimum wage has been paid? Has anyone had any experience of such a situation?