37 Employers Named and Shamed for not Paying the Minimum Wage

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05 Feb 2015

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  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

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