Do you know whether you are actually paying the minimum wage?

I drafted a contract for a small cleaning company recently and from the discussion it started to emerge that they probably weren't being paid the minimum wage when they first started. This wasn't intentional and really was due to the small margins that the company was making.

We talked through how with some adjustments some costs could be spread over a longer period and therefore the impact would be smaller as well as other options where the business paid for uniform and if they left within a short period the cost of uniform could be deducted.

The following are eight things to check you aren't underpaying your employees:

1. Uniform or safety equipment shouldn't take your employees below the minimum wage.

If your employees need things to do their job – like tools, safety clothing, or uniform (including dress-code appropriate clothes) you need to make sure any costs don't cause their wage to?drop below the legal minimum for that pay reference period. (If they are paid monthly, the pay reference period is a month, paid weekly, it's a week.)

2. Ensure time worked doesn't bring employee's below minimum wage.

This includes: overtime, training time, travelling time, waiting time, and regular 'slivers' of time added on to shifts, such as being asked to arrive early to open up, or queuing to pass through security checks.

3. You should get a pay rise each April (and on certain birthdays)

The minimum wage rates increase each year on 1 April, and you should also increase when you turn 18, and 21.

4. If you provide accommodation, pay can only be reduced by a set amount

Your weekly salary can only be reduced by a maximum of ￡69.93 a week below the minimum wage. Any housing costs over this amount CANNOT be 'offset' against your salary.

5. Tips or overtime can't be used as a 'top up'

Tips or overtime payments must be on top of the legal minimum wage for your age, regardless of whether they're paid through your payroll, or given to you by customers.

6. Being a commission-only worker doesn't mean they can be paid less than minimum wage

Commission only roles have to be paid the correct national minimum wage rate. If they don't make enough commission during a pay reference period, you must top up their pay to make sure they get at least the legal minimum.

7. Don't pay the apprentice rate if they are not actually an apprentice

To be classed as an 'apprentice', the contract must include some form of structured – and paid – training time. This training should have a clear timescale and aim.

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