The position of ‘live-in’ workers as regards employment status and rights has long been a bone of contention in the care industry in particular, leading the Government to create a new compliance scheme for social care employers.
Amid concern that ‘sleep-in’ shift workers may have been incorrectly paid less than the National Minimum Wage, the new Social Care Compliance Scheme will give employers who opt to join up to a year to identify any payments due to workers and, where arrears of pay are identified, three months to make them good.
Any social care employers that are currently the subject of a complaint will be contacted by HM Revenue and Customs (HMRC) to encourage them to sign up for the scheme. Where an employer chooses not to participate in the scheme they will be ‘subject to HMRC’s normal enforcement approach’.
The thin margins operating in the care sector have led to a general waiver of any PAYE penalties for such employers relating to underpayments arising prior to 26 July 2017, and enforcement action in respect of payments for sleep-in shifts was temporarily suspended then and recommenced only on 1 November 2017.
The updated guidance on sleep-in shifts can be seen here: National minimum wage law: enforcement