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

  • How To Guide: Helping Employees with the EU Settlement Scheme

    FREE DOWNLOAD

    How To Guide: Helping Employees with ...

    Read more
  • Sample Risk Assessment Template

    FREE DOWNLOAD

    Sample Risk Assessment Template

    Read more
  • Upcoming Employment Law Changes - 2019/20

    FREE DOWNLOAD

    Upcoming Employment Law Changes - 201...

    Read more
  • Tribunal Quarterly Statistics Analysis

    BLOG

    Tribunal Quarterly Statistics Analysi...

    Last week, the Ministry of Justice released the quarterly statistics for employm...

    Read more
  • How Does Time in Lieu Work?

    BLOG

    How Does Time in Lieu Work?

    You’ll most commonly use time off in lieu (TOIL) when you require employees to w...

    Read more
  • Corporate Manslaughter: What You Need to Know

    BLOG

    Corporate Manslaughter: What You Need...

    Until 2008, it was both difficult and rare to convict a corporation for a crimin...

    Read more
  • Solicitors Benevolent Association

    CASE STUDY

    Solicitors Benevolent Association

    “The reason for using Croner was the high-profile track record and the credibili

    Read more
  • John Taylor Hospice

    CASE STUDY

    John Taylor Hospice

    “A large number of the queries are around employment law and rights in areas suc

    Read more
  • Motorsport Industry Association

    CASE STUDY

    Motorsport Industry Association

    “I’m so happy with the service Croner provide, I’d be hard pressed to find a fau

    Read more

Ready to focus on what you do best?

Get your free consultation and speak to an expert today.