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The National Minimum Wage: students working for a university and living in university accommodation

Some students who are employed by higher education institutions and get accommodation from them may inadvertently have been underpaid the National Minimum Wage (NMW). Find out how to check and get advice on what to do next.

Check if you are entitled to the NMW

The vast majority of students are unlikely to be owed arrears of the NMW.

However if you live in higher education institution-provided accommodation and are also working for them, your first step should be to check whether you are entitled to the NMW. You can do this by using the online calculator on the nibusinessinfo.co.uk website.

If you think you are owed arrears of the NMW you should talk to your employer. Explain why you think you have been underpaid the NMW and ask them to resolve the matter.

If your employer agrees and repays the arrears of the NMW no further action is needed.

Compromise agreement

Your employer may ask you to sign a 'compromise agreement'. By doing so you will agree not to:

  • make a complaint to an Industrial Tribunal about the dispute which has been settled
  • continue with an Industrial Tribunal claim if you have already made one

Any agreement not to make or not to continue with a complaint to an Industrial Tribunal is only binding if strict conditions have been met. One of which is that you must have received independent legal advice from a qualified person.

Mediation

You and your employer may also want to consider using mediation to come to an agreement about how to resolve the matter. Mediation involves an independent, impartial third party working with you and your employer to help develop and agree a solution to the problem.

Raising a grievance

If you are unhappy with your employer's reply you should follow the guidance under 'resolving workplace disputes'.

If you fail to act reasonably and then make a complaint to an Industrial Tribunal, any compensation you are awarded could be reduced as a result of your failure.

Where to get help

The Pay and Work Rights Helpline gives confidential help and advice on the NMW. If you aren't being paid the NMW you can use the HMRC enquiry or complaint form or call the helpline for advice.

Alternatively you can make a claim for unlawful deductions from wages to an Industrial Tribunal, or a breach of contract claim to a tribunal or a civil court.

Any of these routes, however, is likely to take a great deal longer than seeking a settlement with your employer. HMRC will need to conduct an investigation and it can take time to bring a case before a tribunal or other court.

If you consider using one of these routes you should bear in mind that there are time limits involved.

For more information read 'Employment related tribunals - an introduction'.

HMRC can investigate claims dating back to six years from the date of the underpayment, subject to pay records or other evidence of underpayment being available.