In October 2013, new rules were introduced to enable the Government to “name and shame” employers who fail to pay their workers the national minimum wage. On 8 June 2014, the Government used this to name 25 employers who had failed to pay this.
Between these 25 employers, workers have been underpaid by £43,000 resulting in a total of over £21,000 in penalties for the affected businesses.
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.”
This follows a drive by the government to take tougher measures on employers that breach the national minimum wage. Together with the new “naming and shaming” rules, employers may now face penalties of up to £20,000. Although this current figure is limited to a maximum per employer, there are plans to amend this so that the employer may face penalties of up to £20,000 per employee.
The national minimum wage increases annually and employers need to be aware of any changes to this and ensure that employees’ salaries are adjusted to take account of the new rates.
