21 Mar 2018
A number of high profile employers are among 179 to be named and shamed by the Government for failing to pay the National Minimum Wage. Those being publicly reprimanded in this round are hospitality sector businesses including Wagamama, Marriott Hotels and TGI Fridays.
Approximately 9,200 workers will also receive a total of £1.1m after their employers broke national minimum wage laws, according to the Department for Business, Energy and Industrial Strategy.
I would urge businesses to look very closely at the pay and benefits of their employees and ensure they are paying what is expected. Employers could not only face negative publicity by being named and shamed for failing to pay the minimum wage, but might also be fined up to £20,000 and face criminal sanctions. Businesses must look at remuneration as a whole and not just the hourly rate they pay to staff. These high profile cases show that it’s not about paying the minimum hourly rate but that the businesses are struggling to increase salaries enough to account for additional deductions, which they must provide to employees. After the naming and shaming of businesses at the end of 2017 for not paying the National Minimum Wage, it’s concerning to see so many companies on the latest list for not paying their employees fairly. The number of businesses named shows there is still a real issue with employers, particularly in the hospitality and retail sectors, struggling to pay minimum wage rates. Businesses which fail to pay the minimum wage are not only forced to pay back every penny but are also fined up to 200% of wages owed.
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As an employer it is vital that you keep up-to-date with these minimum wage changes. Croner can help ensure that your employees are being paid the correct amounts, saving your business from potentially expensive action should a pay issue be raised by one of your workers. If you think you're at risk or have any questions in relation to the National Minimum Wage, please contact our employment law experts today on 0808 145 3385.
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