In a payroll landscape defined by complexity, compliance risk and increasing scrutiny, few challenges loom larger than national minimum wage (NMW). Yet, as the discussion with Fair Work Solutions’ founders made clear, it’s not the headline rate that causes the greatest difficulty, it’s the calculation behind it.

We sat down with Fair Work Solutions co-founders Wendy Muirhead and Jeni Morris to explore why NMW compliance continues to challenge organisations, why the industry has remained underserved, and how their platform is changing that narrative.

“Frustration drove us here”

The origins of Fair Work Solutions lie in a shared but differently rooted frustration.

For Wendy Muirhead, whose career has been spent in payroll technology, the issue was persistent and visible across the market. Organisations were asking for solutions to increasingly complex compliance challenges, yet those needs were repeatedly deferred.

“Customers are asking for solutions, but it’s always on a roadmap that gets pushed and pushed. Nobody was really catering for the complexity of national minimum wage.” 

Jeni Morris approached the problem from the regulatory side. Her experience within HMRC exposed a widespread lack of understanding, even among highly resourced organisations.

“I’d sit across from businesses and advisors, even from the Big Four, and they didn’t understand the legislation. That’s incredibly frustrating when you’re enforcing it.” 

After leading EY’s national minimum wage team, Jeni became increasingly motivated to broaden her impact beyond a select client base.

“Before I retire, I want to have helped the entire payroll industry understand this strange world of NMW.” 

Together, their expertise formed a natural partnership, combining deep legislative knowledge with practical payroll and technology experience.

The problem: It’s not pay, it’s the calculation

A central theme of the conversation is a misconception that continues to catch organisations off guard: that paying above minimum wage guarantees compliance.

In reality, NMW is not a simple rate, but a set of calculations that vary depending on how work is defined.

“NMW isn’t a rate, it’s a calculation. And there are four different calculations depending on the type of work.” 

This creates unexpected areas of risk, particularly among salaried employees. Individuals earning £50,000 or more can still fall into non-compliance due to how their working hours accumulate across a year.

“You might work extra hours throughout the year. By month twelve, those hours are compressed into one period, and that’s where the risk appears.” 

Even seemingly generous compensation structures do not eliminate that risk.

“You could be paid a £1 million bonus in month four and still be underpaid in month twelve because the bonus only counts in the period it’s paid plus a small percentage allowed to be carried back into the previous pay period.”

This disconnect between perception and reality is one of the defining challenges in NMW compliance.

A hidden operational burden

Beyond the technical complexity, the operational strain on payroll teams is significant.

Across their conversations with organisations, both founders observed a consistent pattern of manual processes, fragmented data sources and a heavy reliance on individual effort. Payroll professionals, driven by a strong sense of responsibility, often find themselves working extended hours to ensure accuracy.

“Payroll professionals genuinely care. They want to get it right every time. But they’re working tirelessly, often manually, to manage that risk.” 

What stood out most was the universality of the issue.

“There wasn’t a single client we spoke to that didn’t have some area consuming huge amounts of time.” 

The risk: Financial, reputational  and personal

The consequences of non-compliance extend well beyond technical errors.

Public naming and shaming remains one of the most visible risks, with organisations exposed to reputational damage that can directly affect their ability to attract and retain talent.

“The fines are material, they can be really consequential to a business.” 

However, enforcement is escalating. Repeat offences can lead to more serious outcomes, including prosecution.

“First offence: penalties and naming. Second: more serious. Third: you’re into prosecution territory.” 

Importantly, this is not a challenge confined to specific sectors or business sizes.

“It affects every sector and even government departments have appeared on the list.” 

Why hasn’t this been solved before?

Despite the scale and persistence of the problem, solutions have been limited. The founders attribute this to the niche nature of the expertise required.

“There are very few people in the UK who truly understand minimum wage legislation.” 

Building an effective solution requires not only that expertise, but also a deep understanding of payroll processes and the technical capability to translate both into a usable platform.

“You need that base knowledge, plus someone who understands payroll, plus a tech team, and the will to do it.” 

From compliance tool to strategic platform

While Fair Work Solutions was initially designed to address compliance, its potential extends far beyond that.

The platform enables organisations to model future scenarios, assess risk across their workforce and even support due diligence during acquisitions. What began as a compliance solution is increasingly becoming a strategic tool.

“It’s like giving businesses a crystal ball; they can see the impact of future changes at the touch of a button.” 

Elevating payroll’s role

One of the more transformative aspects of the platform is its impact on how payroll functions within the business.

By providing clear, real-time visibility of risk, payroll professionals are better positioned to engage with senior stakeholders and contribute to strategic decision-making.

“This gives payroll a real opportunity to elevate the conversation, to show executives where risk sits and how to prevent it.” 

The vision: Simplicity at scale

Looking ahead, both founders are aligned on a vision centred around accessibility and simplicity.

For Jeni, the goal is widespread adoption across the payroll profession.

“I want every payroller to be able to access this, without going through the pain of understanding it all themselves.” 

Wendy echoes that ambition, focusing on efficiency and ease of use.

“Helping people do in minutes what currently takes weeks. That’s the plan.” 

Ultimately, the aim is to normalise compliance across the UK workforce.

“Making sure the whole UK is doing it the right way and making it easy.” 

Final thoughts

Fair Work Solutions enters a space where complexity has long been accepted as the norm. By translating intricate legislation into accessible, actionable insight, it offers something the industry has been missing with NMW: clarity.

Or, as Jeni and Wendy so succinctly put it:

Minimum wage. Maximum clarity.

Want to hear more? Jeni is speaking about Payroll and Employment Law updates at this year’s Reward and Payroll Summit - Click here for more information