AutoSmart GuidebooksWhat this guidebook covers
Illegal-working penalties tripled in February 2024, to up to £60,000 per worker for a repeat breach, and car washes are a named target: the Home Office made 808 visits to car washes in 2025. HMRC names employers who underpay the minimum wage, car dealers among them.
This guidebook covers 6 employment standards with 18 checkpoints across sales, workshop, valeting, car wash and apprentices: right-to-work checks before day one, follow-up checks, valeting and car wash contractors, minimum wage after deductions, apprentice pay, and working hours and holiday pay.
The 6 employment standards
Open a standard to see the law behind it, what is checked, what it can cost and the evidence. Ideal fix times are counted from audit submission.
EMP-01Right to work checks before day oneImmediate
- The law
- Immigration, Asylum and Nationality Act 2006 · National Minimum Wage Act 1998 · Working Time Regs 1998 · IAN 2006 s.15 civil penalty · Home Office Employer's Guide to Right to Work Checks
- What we check
- Every worker (sales, technicians, valeters, drivers, apprentices) has a right-to-work check before starting: original documents seen or online share code checked, and a dated copy kept.
- What it can cost
- Up to £45,000 per worker, £60,000 if repeated. Five valeters without checks is £225,000–£300,000.
- Evidence
- 10 files + start dates
EMP-02Follow-up checks7 days
- The law
- Immigration, Asylum and Nationality Act 2006 · National Minimum Wage Act 1998 · Working Time Regs 1998 · Home Office Code of Practice: follow-up checks for time-limited permission
- What we check
- Workers with time-limited permission are diarised and rechecked before their permission expires. Anyone who loses the right to work is taken off work.
- What it can cost
- A lapsed permission turns a legal worker into an illegal one: £45,000–£60,000.
- Evidence
- Expiry report
EMP-03Valeting and car wash contractors30 days
- The law
- Immigration, Asylum and Nationality Act 2006 · National Minimum Wage Act 1998 · Working Time Regs 1998 · Modern Slavery Act 2015 s.54 transparency (turnover £36M+) · supplier due diligence
- What we check
- Outsourced valeting, car wash and transport suppliers are checked: right to work, pay, and no signs of exploitation. Large groups publish a modern slavery statement.
- What it can cost
- If contractors' workers are illegal or exploited, it's your brand in the raid headlines, and modern slavery can be prosecuted.
- Evidence
- Audit files + statement
EMP-04Minimum wage after deductions72 hours
- The law
- Immigration, Asylum and Nationality Act 2006 · National Minimum Wage Act 1998 · Working Time Regs 1998 · National Minimum Wage Act 1998 · NMW Regulations 2015 (deductions and pay reference periods)
- What we check
- Every worker gets at least the minimum wage for all hours worked, after deductions for uniforms, tools, training or parking, and including time spent on training or travelling between sites.
- What it can cost
- Back pay plus a 200% penalty, up to £20,000 per worker, and your dealership named publicly.
- Evidence
- Payslip audit
EMP-05Apprentices paid correctly72 hours
- The law
- Immigration, Asylum and Nationality Act 2006 · National Minimum Wage Act 1998 · Working Time Regs 1998 · NMW Regulations 2015 apprentice rate conditions
- What we check
- Apprentices are paid at least the apprentice rate only while eligible (under 19, or in their first year), then moved to the right age rate, with college time paid.
- What it can cost
- Every month on the wrong rate adds to back pay plus 200% penalties.
- Evidence
- Apprentice list + payslips
EMP-06Working hours and holiday pay30 days
- The law
- Immigration, Asylum and Nationality Act 2006 · National Minimum Wage Act 1998 · Working Time Regs 1998 · Working Time Regulations 1998: 48-hour average (opt-out allowed), rest breaks, 5.6 weeks' holiday including commission and overtime in holiday pay
- What we check
- Hours are recorded, 48-hour opt-outs are signed and voluntary, breaks are taken, and holiday pay includes regular commission and overtime.
- What it can cost
- Holiday pay claims go to employment tribunal and can reach back two years for every salesperson.
- Evidence
- Payroll + opt-outs
How to run a UK right to work and minimum wage audit, step by step
- Confirm what applies. Include contracted valeting and car wash crews as well as your own staff; the Employment Rights Act 2025 is bringing further changes in stages.
- Walk the site, standard by standard. Score each of the 18 checkpoints Pass, Fail or N/A. N/A only where the standard rules it out, with the reason recorded. Check right-to-work copies against start dates, and recalculate pay after deductions for uniforms and tools.
- Capture the evidence. A pass counts only with proof captured at the time of the audit: right-to-work copies with check dates, payslips, contractor agreements and holiday records.
- Give every fail an owner and a fix time. Record what you saw and who owns the fix. Each standard carries an ideal fix time, from immediate to 30 days, counted from audit submission (see the table above).
- Fix it, then prove it. The site fixes the cause and uploads proof of closure; the auditor checks the proof before closing the finding.
- Re-check at the next audit. Confirm closed findings stay closed, and look for the same fail at your other sites so one gap doesn't repeat across the network.
Who this guidebook is for
- Dealer principals
- HR and payroll managers
- Auditors
A reference document, not legal advice. Fines and rules change: check the current text with the regulator or your legal adviser before acting.
