9. Pay, repayment clauses and other deductions
National Minimum Wage
All workers in the UK – regardless of nationality or immigration status – are entitled to the National Minimum Wage( NMW). As of 1 April 2025, the minimum hourly rate, known as the National Living Wage( NLW) for workers aged 21 and over is £ 12.21. It increases in April every year.
This right applies to:
• Zero-hours and agency workers
• People paid cash-in-hand
• Workers labelled as self-employed if they are not genuinely in business on their own account
Employers must not use deductions, fees, or classification tricks to bring pay below the legal minimum, although they can deduct accommodation costs up to a maximum of £ 74.62 a week( April 2025).
Enforcement and record keeping
Employers must keep adequate records to show they are paying the NMW. These must be kept for at least six years. Workers have the right to inspect their records, and if underpayment is found, employers face fines of up to 200 % of the arrears owed.
Common breaches
Reps should be alert to:
• Deductions for accommodation exceeding the legal offset(£ 74.62 / week as of April 2025)
• Charges for uniforms, DBS checks or training
• Unpaid travel time between care visits
• Withholding pay for shifts cancelled at short notice
• Failing to pay for mandatory training or induction
• Failure to pay Statutory Sick Pay
These practices may breach the Employment Rights Act 1996 or National Minimum Wage Act 1998. Not being paid adequately for time between visits is an especially common issue. Workers can be offered payments for milage when driving between clients’ homes, or not paid at all. There is often a lack of transparency around how these payments are calculated, which makes it all the more important for workers to collect their payslips and record their working time using logs like that on page 45. If the lack of adequate pay for travel time causes a workers’ overall pay to drop below the minimum threshold for their visa conditions, this can cause issues on renewal as well as being unlawful.
“ They deduct for training and even for gloves. That pushes them below minimum wage.” – UNISON organiser
LRD • Supporting migrant workers 47