Mark Whitehead 26 July 2017

Penalties for providers who underpaid carers ‘waived’ to minimise disruption

A huge bill owed by care homes who underpaid their workers for overnight sleep-in shifts has been waived, the Government has announced.

New guidance in October last year following two employment tribunals said previous advice was wrong and the national minimum wage should be paid for time spent sleeping in clients' homes.

But Mencap warned the bill for back pay going back as much as six years could total £400m and would be 'disastrous'.

The charity said many providers would be unable to meet the demands and could face insolvency.

Now ministers have announced the financial penalties owed by employers who have underpaid their workers for overnight sleep-in shifts before July 26 this year will be waived to 'minimise disruption to the sector' and enforcement activity temporarily suspended until October 2.

But the Department for Business, Energy & Industrial Strategy said the Government 'remained committed to making sure workers in this sector receive the minimum wage they are legally entitled to, including historic arrears.'

It would 'continue to look at the issue extremely carefully alongside industry representatives to see whether any further support is needed and ensure that action taken to protect workers is fair and proportionate, while seeing how it might be possible to minimise any impact on social care provision.'

Mencap chairman Derek Lewis welcomed the two-month stay in enforcement action and the decision not to levy penalties on top of the back pay bill, but said the moves would not address the 'catastrophic impact' of the back pay bill.

He said: 'Employers are keen to fulfil their responsibilities to employees, but if the Government changes the rules on how sleep-in payments should be paid, it must expect to have to pay for the changes.'

SIGN UP
For your free daily news bulletin
Highways jobs

Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
Two vacancies has arisen within Adult and Health Services for a Team Manager working in the Chester Le Street Health Centre/Derwent Clinic and Enterpr Durham
Recuriter: Durham County Council

Commercial Waste Account Manager

Durham County Council
£38,220 - £41,771
Refuse and Recycling Services are looking for a Commercial Waste Account Manager to join their team   WHAT IS INVOLVED? Working with a significant deg Peterlee
Recuriter: Durham County Council

Head of Drama Teacher

Durham County Council
£32,916- £51,048 + 8,611
Head of Drama Teacher MPS-UPR + TLR2c- £32,916- £51,048 + 8,611 Required to start 01/09/2026.   The performing arts is central to life at Belmont Comm Durham
Recuriter: Durham County Council

Human Resources Officer Advice and Support

Durham County Council
£35,412 to £39,152 p.a. pro rata (Grade 9)
  This is an exciting opportunity to join the HR Advice and Support service supporting the delivery of professional HR advice and support in conjuncti Spennymoor
Recuriter: Durham County Council

Senior Product Manager - Social Care

Essex County Council
£63323.0000 - £74497.0000 per annum
Senior Product Manager - Social CareFixed Term, Full Time£63,323 to £74,497 per annumLocation
Recuriter: Essex County Council
Linkedin Banner