(NMW) because of the way its childcare salary sacrifice scheme was
administered says it unwittingly breached the rules.
It also claims they are 'over-complicated' and discriminate against low-paid staff.
The nursery is one of 37 employers featured on the Department of Business, Innovation and Skills' (BIS) 'naming and shaming' list for neglecting to pay members of staff NMW.
It followed an investigation by HMRC into the administration of the nursery's childcare salary sacrifice scheme. As a result of the investigation, the setting was fined for deducting additional childcare fees owed by some staff taking up their salary sacrifice scheme from net pay.
Because HMRC rules dictate that a salary sacrifice arrangement cannot reduce an employee's cash earnings below NMW, the nursery agreed with some staff getting lower salaries that the additional fees they owed would be taken from their take-home pay. However, the nursery says it was unaware that as an employer it cannot make a claim on employees' net pay, only their gross pay.
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