After a lengthy, ongoing dispute, the government has finalised the back-payment scheme regarding “sleep-in” shifts in the care sector. Staff must be paid national minimum wage for all working time which the courts have ruled, includes “sleep-in” shifts.
Workers should be paid for the whole length of the shift, regardless of whether or not they are sleeping. In light of this, several care homes have been found to have underpaid their staff for up to 6 years, this is expected to total £400 million in back payments. However, the government have been slow to announce how the already underfunded care sector will be required make the payments owed to the workers without jeopardising the care they provide or crippling the sector entirely.
Workers should be paid for the whole length of the shift, regardless of whether or not they are sleeping. In light of this, several care homes have been found to have underpaid their staff for up to 6 years, this is expected to total £400 million in back payments. However, the government have been slow to announce how the already underfunded care sector will be required make the payments owed to the workers without jeopardising the care they provide or crippling the sector entirely.
In early November, they announced the Social Care Compliance Scheme (SCCS) to ensure that workers receive their rightful pay whilst also attempting to minimise the impact on the sector. Care homes can opt into this scheme to make the payments. While the exact details are to be confirmed, care homes will have a year to determine the amount they owe, and the arrears must then be paid within three months.
Whilst it is vital to pay workers what they are owed, many are still concerned that the payments will be detrimental to the care industry. Whilst the one year grace period buys the government and employers some much needed time to assess the overall impact of the back payments, the scheme has been criticised for a lack of consideration as to how the industry can afford the £400 million in back payments without any new funding. If the affected companies do not opt in to the scheme, they will be instead subject to HMRC’s usual enforcement approach.
HMRC are contacting those with complaints against them directly with further information about the scheme.