202 Businesses Named For Failing To Pay Minimum Wage
The government has taken action against over 200 employers who failed to pay their lowest paid workers the minimum wage. These employers have been instructed to reimburse their workers and are facing penalties totalling nearly £7 million. The breaches in payment affected approximately 63,000 workers, leaving them out of pocket.
The report, published this week, reveals that 202 employers were found to have violated the National Minimum Wage (NMW) law, owing their workers nearly £5 million. The government has made a point of publicly identifying these companies, which range from major high street brands to small businesses and sole traders. This serves as a clear message that no employer is exempt from their obligation to pay their workers the statutory minimum wage.
The Department For Business & Trade reported:
202 businesses named for failing to pay the minimum wage to lowest paid workers.
Employers ordered to repay workers and face penalties of nearly £7 million after breaches left 63,000 workers out of pocket.
Follows on from 9.7% increase in National Living Wage and Minimum Wage paid to almost 3 million workers.
Kevin Hollinrake, the Minister for Enterprise, Markets, and Small Business, emphasized that paying the legal minimum wage is non-negotiable and that businesses of all sizes should understand the importance of properly compensating their hard-working staff. While most businesses do right by their employees, the government's message to the minority that flouts the law is clear: pay your staff fairly or face the consequences.
It has been confirmed that the businesses listed today have since repaid their staff and have also incurred financial penalties. The investigations conducted by HM Revenue and Customs (HMRC) took place between 2017 and 2019.
The employers named today engaged in various forms of underpayment:
39% of employers deducted pay from workers' wages.
39% of employers failed to accurately compensate workers for their working time.
21% of employers paid an incorrect apprenticeship rate.
While not all cases of underpayment may be intentional, the government stresses that there are no excuses for failing to pay workers what they are owed.
Guidance for employers regarding pay is available on the GOV.UK website. Additionally, the government has published supplementary advice today on addressing breaches and ensuring correct payment to workers.
Bryan Sanderson, Chair of the Low Pay Commission (LPC), highlighted that the minimum wage serves as a guarantee to ensure that all workers receive a decent standard of pay. When employers violate this law, they not only harm their employees but also undermine fair competition among businesses. Regular public announcements of employers who underpay their workers are expected to raise awareness of this issue and help protect those earning the minimum wage.
Employers should always conduct the necessary checks and refer to the guidance provided in "Calculating the Minimum Wage." An educational bulletin focusing on unpaid working time, along with general statistics regarding breaches of NMW legislation in today's announcement, is also available.
Workers are reminded to review their pay and seek advice through the "check your pay" website. HMRC considers all complaints from workers seriously.
Source: Gov.uk
