5 Steps to Claim National Minimum Wage Arrears in Employment Tribunal

Were you paid less than the national minimum wage, leaving you out of pocket and unsure how to recover your national minimum wage arrears?

Understanding National Minimum Wage Arrears

If your employer has underpaid you below the national minimum wage, you have the right under UK law to claim those national minimum wage arrears through an employment tribunal. The National Minimum Wage Act 1998 entitles most workers—not just employees—to at least the hourly minimum rate set by the government, covering hourly pay, salaried hours, piece rates, and more.

Pursuing an unpaid minimum wage claim can seem daunting, especially when self-representing, but following a structured process increases your chances of success. This guide outlines five essential steps to help you build a strong employment tribunal NMW case, from checking eligibility to filing your claim.

Remember, acting promptly is crucial as time limits apply—typically three months from the date of underpayment or your last day of employment for a series of underpayments, less a day, though ACAS early conciliation can extend this.

Step 1: Verify Your Entitlement and Calculate Arrears

Under national minimum wage law, a wide range of people qualify as ‘workers’, including employees, casual workers, agency staff, and some self-employed in specific roles, but not company directors or genuinely self-employed contractors. Check the current rates on GOV.UK, which vary by age and apprenticeship status—for example, as of 2024, workers aged 21 and over receive £11.44 per hour.

To perform a minimum wage calculation, tally your total pay and hours worked in each pay reference period, typically monthly. Deduct allowable expenses like uniform costs only if agreed. Use the free GOV.UK minimum wage calculator for precision, inputting shifts, overtime, and tips where applicable.

For instance, if you worked 160 hours in a month but received only £1,500 when £1,830 was due at £11.44/hour, your national minimum wage arrears total £330 for that period. Keep records spanning up to two years back for ongoing underpayments.

Step 2: Gather All Necessary Evidence

Solid evidence strengthens your recover NMW tribunal application. Start with payslips showing hourly or total pay below the threshold, contracts outlining hours or rates, and timesheets or rotas logging actual hours worked, including overtime or on-call time that counts towards NMW.

Bank statements confirm payments received, while emails or notes from discussions with managers about pay issues add context. If your employer failed to provide NMW statements (required under the Act), tribunals presume underpayment unless proven otherwise.

Witness statements from colleagues facing similar NMW arrears can corroborate patterns of underpayment, but focus on your own case to avoid complications.

Step 3: Raise the Issue with Your Employer

Before tribunal, demonstrate you tried resolving the issue internally. Send a formal grievance letter detailing your minimum wage calculation, arrears amount, and evidence summary, requesting payment within 14 days. This aligns with ACAS guidelines and shows good faith.

Employers may settle NMW arrears upon challenge, avoiding tribunal costs. If not, their response (or lack thereof) becomes evidence of unreasonable behaviour, potentially boosting your claim.

For example, a waiter discovering tips weren’t included in NMW pay could write: ‘My pay for March fell short by £250 as tips were excluded from the hourly rate calculation.’

Step 4: Engage in ACAS Early Conciliation

ACAS early conciliation is required before filing an employment tribunal claim for national minimum wage arrears. Obtain a free certificate by contacting ACAS online or by phone; a conciliator mediates between you and your employer for up to six weeks.

This step often resolves unpaid minimum wage claims without tribunal, with many employers paying up to avoid hearings. If unsuccessful, the certificate (number) is essential for your ET1 form, and time extends by the conciliation period.

During conciliation, provide your calculations and evidence summary; be prepared to negotiate but know your bottom line based on law.

Step 5: Submit Your Employment Tribunal Claim

With your ACAS certificate, complete ET1 online via GOV.UK, specifying the claim under NMWA 1998 s.17 or ERA 1996 s.23 for unauthorised deductions. Detail arrears amount, time period, and attach evidence bundle.

No fee applies, and tribunals expect self-reps. The employer responds with ET3; prepare for case management and potential hearing. Success means ordered payment plus interest.

Tribunals presume underpayment if no NMW statement provided, easing your burden of proof.

Wrapping Up Your NMW Arrears Claim

Claiming national minimum wage arrears through employment tribunal empowers you to enforce your worker pay rights UK. By meticulously following these five steps—from verifying entitlement to filing—you position yourself for a fair outcome.

Many succeed without lawyers, but persistence and organisation are key. If awarded, enforce via tribunal order; consider HMRC reporting for penalties on employer.

Stay informed on national minimum wage changes to protect your earnings ongoing.