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16 June 2014 0 Comments
Posted in Employment, Opinion

Employers who fail to pay minimum wage can be named and shamed

Author headshot image Posted by , Partner

On 8 June 2014, 25 employers who failed to pay their employees the minimum wage were named under a new regime introduced in October 2013, which makes it easier to name and shame wrongdoers. Between them the employers owe workers more than £43,000 in arrears and in addition have to pay financial penalties totalling over £21,000.

Business Minister Jenny Willott said: “Paying less than the minimum wage is not only wrong, it’s illegal. If employers break the law they need to know that they will face tough consequences.

“Any worker who is entitled to the minimum wage should receive it.”

A series of tougher measures has been introduced to crack down on employers that break National Minimum Wage law. As well as being publicly named and shamed, employers that fail to pay their workers the National Minimum Wage also face new penalties of up to £20,000 – 4 times higher than before.

Plans to legislate in the new parliamentary session will mean that employers can also be given penalties of up to £20,000 for each individual worker they have underpaid, rather than the maximum penalty applying to each employer. This means that if an employer underpays 10 workers, they could face penalties of up to £200,000.

The 25 cases named were thoroughly investigated by HM Revenue & Customs (HMRC) after workers made complaints to the free and confidential Pay and Work Rights helpline.

Employment law is constantly changing, which can make it challenging for employers to keep up with their legal rights towards employees. At Royds, we can provide expert advice on all aspects of employment law, including any changes to the National Minimum Wage, ensuring employers are fulfilling their legal obligations. For more information, please please contact our specialist Employment & HR team.

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