Paid below minimum wage cash in hand: who helps?

Summary

Being paid cash in hand is not illegal in itself, but you are still entitled to at least the minimum wage and a payslip. HMRC enforces minimum wage: you can complain online, anonymously if you prefer, and HMRC can make the employer pay arrears and a penalty. ACAS explains your rights for free. If you are worried about losing your job, the law protects you from dismissal for asserting minimum wage rights from your first day.

Key information

• Check your rate on GOV.UK minimum wage rates. It depends on your age and whether you are an apprentice.
• Employee, worker, zero hours or agency: all are entitled to minimum wage. Genuinely self employed: not covered, but being called self employed does not decide it.
• Since April 2019, employees and workers are entitled to an itemised payslip, cash in hand or not.
• Keep your own evidence: a diary of hours, rota messages, photos of timesheets, cash amounts received and dates.
• If the employer is not running payroll, your tax and National Insurance record may be missing, which can affect benefits and state pension. HMRC can look at that too.
• Back pay routes: HMRC enforcement, an employment tribunal claim for unlawful deductions (usually within 3 months less one day of the last underpayment), or a county court claim.
• When to speak to a solicitor or Law Centre: you are dismissed or threatened after raising pay, the arrears are large, a tribunal deadline is close, or there are other issues such as discrimination.
• HMRC can: take a minimum wage complaint online, including anonymous ones; investigate the employer, order arrears for all affected staff, and issue penalties. They will not act as your representative, or recover pay above the minimum wage that your contract promised.
• ACAS can: explain minimum wage entitlement and how to work out what you are owed; run early conciliation before any tribunal claim. They will not enforce payment or report your employer for you.
• Citizens Advice can: explain your options using problems getting paid; help you plan a letter or grievance, and check any tax worries. They will not contact the employer on your behalf in most cases, or run a tribunal claim.

Practical guidance

• Start an hours and pay diary today.
• Check your correct rate and work out the shortfall.
• Call the ACAS helpline for free advice.
• Ask your employer in writing for a payslip and to be paid the correct rate.
• Complain to HMRC via GOV.UK. You can do this anonymously if you are worried.
• To recover your own arrears faster, consider ACAS early conciliation and a tribunal claim. Get help from a Law Centre or a union.
• Ask the Shaman to sort the steps for your situation.

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