37 Employers Named and Shamed for not Paying the Minimum Wage

blog-publish-date

05 Feb 2015

blog-read-duration

  The government has today revealed the names of 37 employers who failed to pay the National Minimum Wage to their workers. A total of over £177,000 in arrears is owed to the employees, along with financial penalties totalling over £51,000. The naming and shaming scheme came into force in October 2013. Since then nearly a hundred employers have been publicly outed. Amy Paxton, Croner Senior Manager at Wolters Kluwer says: “The National Minimum Wage (NMW) requires that employers pay workers a minimum hourly rate of pay. Since October 2004, this has covered most workers over the age of 16. Employers cannot opt out of the legislation and it is very clear that if they choose to ignore the law and pay below the NMW they will be penalised: not only financially; their reputation will be damaged due to the bad publicity.” Here are some facts from Croner’s HR experts on the National Minimum Wage:

  • The NMW requires that employers pay workers a minimum hourly rate of pay. Employers cannot opt out of the legislation.
  • The NMW main rate is set at £6.50 per hour from 1 October 2014.
  • There are three current tiers of payment plus an apprentice rate.
  • The NMW applies to most workers over the age of 16. It does not apply to the self-employed.
  • Employers are obliged to keep records that are sufficient for NMW purposes.
  • There are seven questions that employers should consider to ensure compliance with the NMW:
    1. What is a worker?
    2. What hours are counted as having been worked?
    3. What type is the particular worker’s job arrangement?
    4. How many hours have been worked?
    5. What is the pay for the work?
    6. What is the hourly rate of pay?
    7. Does this rate comply with the NMW?
  • Employees can complain about wage levels to a government-sponsored confidential hotline (0845 600 0678).
  • Employers can be fined up to £20,000 for non-compliance (£5,000 maximum prior to 7 March 2014).
The current NMW rates are:
Rate
Workers aged 21 and over £6.50 per hour
Workers aged 18 to 20 £5.13 per hour
Workers aged 16 to 17 £3.79 per hour
Apprentices (those under the age of 19 and older and apprentices in the first year of apprenticeship) £2.73 per hour

Free to Download Employer Resources

  • Model Apprenticeship Agreement

    FREE DOWNLOAD

    Model Apprenticeship Agreement

    Read more
  • Sample COSHH Assessment Record

    FREE DOWNLOAD

    Sample COSHH Assessment Record

    Read more
  • Return to Work Interview Form

    FREE DOWNLOAD

    Return to Work Interview Form

    Read more
  • Fire Safety in the Workplace

    BLOG

    Fire Safety in the Workplace

      If you’re reading this, and you’re an employer, you—yes you—are responsible f...

    Read more
  • Employers' Guide to Employee Development Plans

    BLOG

    Employers' Guide to Employee Developm...

    Employees have plans for their personal and professional lives. From getting mar...

    Read more
  • Case Law Update: Protection for Whistle Blowers

    BLOG

    Case Law Update: Protection for Whist...

    The Employment Appeal Tribunal (EAT) has held that, in order for whistle blowers...

    Read more
  • Syalons

    CASE STUDY

    Syalons

    International Syalons is a manufacturer of advanced ceramics, working for variou...

    Read more
  • Pangea Support

    CASE STUDY

    Pangea Support

    We see Croner being integral to our organisation moving forward, and we’d defini

    Read more
  • JC Couriers

    CASE STUDY

    JC Couriers

    With Croner it genuinely feels like they want me to be a success. And I'm happy

    Read more

Do you have any questions?

Get a free callback from one of our regional experts today