Employers ‘named and shamed’ for failing to pay minimum wage

A group of 25 employers across the UK, including a school, a retail outlet, hotel and a construction firm, have been “named and shamed” for failing to pay employees the minimum wage.

In total, the employers owed workers more than £43,000 in outstanding pay and they will also have to pay fines worth more than £21,000.

HMRC investigated wage underpayments after workers complained to its confidential helpline. The introduction of tougher rules last October means that as well as being publicly named for failing to pay the legally required amount, employers could be fined up to £20,000 for each employee they have underpaid. This is four times the amount of financial penalties previously
faced by employers.

The 25 Companies have been named, not only on the HMRC website, but the list has appeared on the BBC News website and
many other public sites.

We would prefer not to see your company named on any future list – it doesn’t make good PR for your business and a hefty fine doesn’t help the bottom line either!

The minimum wage rates are as follows:

Year 21 and over 18 to 20 Under 18 Apprentice*
2013 (current rate) £6.31 £5.03 £3.72 £2.68
From October 2014 £6.50 £5.13 £3.79 £2.73

*This rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the
National Minimum Wage for their age.

If you pay or pay close to the national minimum wage then it is worth checking that all your staff comply and earn at least the
minimum wage against the total hours they work.

If you have paid an employee 8 hours at £6.31 but they actually worked 9 hours then you fall foul of the national minimum
wage., because their average hourly rate would have been £5.61

If you are unsure, then please contact a member of the team who will assist.