What records does the Fair Work Agency check in hospitality?
In hospitality, the Fair Work Agency focuses on pay records, rota and hours records, holiday pay calculations, tronc and tips distribution records, and zero-hours contract compliance. The sector is a priority for enforcement due to historically high rates of NMW non-compliance.
Full answer
The hospitality sector has one of the highest rates of National Minimum Wage non-compliance in the UK, which is why the Fair Work Agency (FWA) — the enforcement body that replaced HMRC NMW enforcement, Employment Agency Standards, and GLAA in 2025 — treats it as a priority sector.
Records the FWA will check in a hospitality inspection:
Pay records: Payslips, payroll records, and wage calculations for all staff going back up to 6 years. They'll be looking for NMW compliance across all worker types — full-time, part-time, zero-hours, casual.
Rota and timesheets: Actual hours worked versus scheduled hours. Are rotas retained? Is pre-shift prep time (cleaning, setup) being counted as working time?
Holiday pay: Are irregular hours workers getting the correct holiday pay? Are tip payments included in holiday pay calculations?
Tipping records: Since the Allocation of Tips Act 2023 came into force in October 2024, the FWA can demand your written tips policy, monthly distribution records, and individual worker tip records going back 3 years.
Accommodation records: If you provide staff accommodation, are you applying the offset correctly and not overcharging?
Zero-hours and agency worker records: With the Employment Rights Bill, expect growing scrutiny of shift cancellation practices and guaranteed hours offers.
- Retain rota records — many operators delete these after a few weeks. Keep them for 6 years.
- Document your tips allocation methodology in writing
- Run a quarterly NMW audit across your workforce
The FWA can arrive unannounced. Your records need to be accessible and accurate at all times.
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Related questions
Do I need a written tipping policy UK?
Yes — since October 2024, the Allocation of Tips Act 2023 requires all employers who receive tips to have a written tips policy and share 100% of tips with workers. Not having one is a legal breach.
What is the National Living Wage in 2026?
The National Living Wage applies to workers aged 21 and over. Rates are set each April by the government following Low Pay Commission recommendations. The April 2025 rate was £12.71/hour — check gov.uk or your ComplianceAlert dashboard for the confirmed April 2026 figure.
What is the National Minimum Wage accommodation offset 2026?
The NMW accommodation offset is the amount you can deduct from a worker's pay (or charge them for accommodation) without it counting as an NMW breach. For 2025/26, the offset is £11.10 per day. Check for the April 2026 update via your ComplianceAlert dashboard.