Many home care operators will have been keeping a keen watch on the developments of the MiHomecare case, and will likely now know that the care provider has indeed settled out of court in the employment tribunal last month.
A quick look at the case:
- The care worker travelled to the homes of the service user clients
- She often had to travel more than 30 mins between appointments
- She was not paid for her travel time
- This effectively meant she was paid below the National Minimum Wage
- MiHomecare settled out of court for £1,250
What does this outcome mean for home care providers across the UK?
Scott Sanderson, Partner and Healthcare Specialist at Hawsons, commented: “This has been the elephant in the room for a long period of time for many home care operators and the outcome of this case is no doubt a concern for many, in an already challenging financial market. MiHomecare’s settlement could now lead to thousands more care workers coming forward, claiming underpayment.”
“We do not yet know the full details following the out of court employment tribunal, but the case highlights what HMRC have been saying for some time – they are stepping up their enforcement actions and penalties where they believe underpayment has occurred. With the new National Living Wage now in place, care providers must ensure their employees are paid and accurately and fairly.”
HMRC now also have the power to not only impose financial penalties, but to also ‘name and shame’ non-compliant employers.
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