بِسۡمِ اللهِ الرَّحۡمٰنِ الرَّحِيۡمِ
This article is written to provide crucial information regarding the legal obligations for compensating employees, including part-time madrassa teachers, in accordance with UK employment law. It is imperative that all religious institutions, including masjids, adhere to these regulations to ensure fair treatment of employees and compliance with national standards.
National Minimum Wage Requirements
As of April 2025, the National Minimum Wage (NMW) and National Living Wage (NLW) rates are as follows:
- 21 and over (NLW): £12.21 per hour
- 18 to 20: £10.00 per hour
- Under 18: £7.55 per hour
- Apprentice: £7.55 per hour
It is crucial to note that these rates apply to all workers, regardless of their employment status or the nature of their work. This includes part-time madrassa teachers and other staff members employed by the masjid. This is not dependent on qualifications.
Employee Rights and Reporting Mechanisms
Employees who believe they are being underpaid have the right to report their concerns to HM Revenue and Customs (HMRC). This process can be initiated anonymously, and HMRC is obligated to investigate all complaints received.
HMRC Enforcement and Penalties
Should HMRC determine that an employer has failed to pay the correct minimum wage, they have the authority to take the following actions:
1. Issue a notice to pay money owed, which can cover arrears for up to 6 years.
2. Impose a fine of up to £20,000 per affected worker, with a minimum penalty of £100.
3. Pursue legal action, including criminal proceedings in severe cases.
Calculating and Paying Arrears
If it is determined that employees have been underpaid, it is the employer's responsibility to calculate and pay the arrears due. The government provides a National Minimum Wage calculator on the GOV.UK website to assist in these calculations.
When calculating arrears, it is important to consider the following:
1. Identify the affected period during which underpayment occurred.
2. Determine the correct pay rate that should have been applied.
3. Calculate the shortfall between the amount paid and the amount that should have been paid.
Compliance and Best Practices
To ensure compliance with UK employment law and avoid potential penalties, we strongly advise the following:
1. Conduct a thorough review of all employee compensation, including part-time and seasonal workers.
2. Implement robust payroll systems to accurately track hours worked and wages paid.
3. Provide clear and detailed payslips to all employees, outlining hours worked and rates of pay.
4. Establish a process for employees to raise concerns about their pay confidentially.
Navigating employment law can be complex, particularly for religious institutions. However, compliance is not only a legal requirement but also aligns with the ethical principles of fair treatment and just compensation that are fundamental to our Faith.
Should you require further guidance or assistance in ensuring compliance with these regulations, it is recommend consulting with a legal professional specializing in employment law or contacting ACAS (Advisory, Conciliation and Arbitration Service) for free, impartial advice.
By taking proactive steps to address these matters, masjid management committees can demonstrate their commitment to upholding both legal and moral standards in their treatment of employees.
Should a Masjid management committee fail or refuse to pay its employee in accordance with the law this could constitute a debt from an Islamic perspective which will need to be settled. Being just and being held accountable is an important part of Islam.
Dr. A. Hussain, Feb. 2025