MHA has challenged the HMRC’s approach after it was ‘named and shamed’ as an employer paying less than the minimum wage.
The not for profit care home provider was among the 191 companies named by the government yesterday as having failed to pay the minimum wage.
An HMRC investigation found MHA had failed to pay £29,244.25 to six workers.
The not for provider said the breach had come as a result of the HMRC’s approach to accommodation which means that any rent paid to an employer must be taken into account when reviewing whether an employee has received net pay at least equivalent to the National Minimum Wage.
As a result, MHA said it had “technically breached” the legislation on six occasions but had “made good the situation and have systems in place to make sure it does not happen again”.
However, the care home provider added that it fundamentally disagreed with the HMRC’s approach to accommodation within the legislation.
MHA argued the HMRC’s approach meant that organisations must subsidise accommodation or prevent employees from having access to rented properties.
The not for profit provider added: “MHA is proud to pay at a minimum the Real Living Wage to its care workers and other staff. Clearly technical breaches such as this need to be addressed, but it’s vital that the Government comes forward with its long-promised reforms for the care sector, including recognising and remunerating the skills of care workers and proposing a much-needed workforce strategy.”