Who should use this standard assessment
The UK National Minimum Wage Act applies to every organisation employing workers in the United Kingdom. The legislation includes conditions and exemptions that apply differently from case to case, and mandates that organisations must keep records regarding the payment of at least the minimum wage in the appropriate instances.
Organisations who wish to assure themselves that their suppliers and partners are operating in compliance with the Labour Market Regulations can use this Standard Assessment within Rizikon Assurance to request information from their third parties. This will help identify and reduce the risk of exposure to high-risk and non-compliant business practices around employment legislation.
How this Standard Assessment was developed
While there are no specific standard questionnaires available from Government Agencies, the legislation and guidance notes lay out specific rules and exceptions which this Assessment has been based on.
Specifically it has been derived from the July 2018 publication by the Department of Business, Energy & Industrial Strategy “The National Minimum Wage and National Living Wage – Calculating the minimum wage” and the Gov.uk web pages providing information on the National Minimum Wage.
Questions, sections and scoring
The structure of the UK 2018 National Minimum Wage Standard Assessment consists of an initial quick section requesting information about legislation compliance. Should a Completer indicate any non-compliance, they are presented with a series of possible legitimate reasons to choose from, and asked to justify their position. If the Completer indicates general Compliance, or compliance within the scope of legitimate exemptions, their organisation will be graded as lower-risk. Failure to display appropriate explanations or justification will yield higher-risk scores.
Scoring works first of all to check that the answers are correct to indicate full legal compliance. Any risk of non-compliance is graded Fail, High-risk, Medium-risk, or Low-risk. A report view will indicate the necessary remediation actions needed to reduce their overall Risk score.