179 employers fined £1.3 million for underpaying 9,200 minimum wage workers
15 March 2018
The latest naming and shaming round serves as a sharp reminder to employers to get their house in order ahead of minimum wage rate rises on 1 April. Not only are these employers forced to pay back every penny but they are also fined up to 200% of wages owed.
The government has named and shamed 179 employers for underpaying more than 9,200 minimum wage workers by £1.1 million. As well as recovering backpay these workers, the government also fined the employers a total of £1.3 million in penalties for breaking national minimum wage laws. The most prolific offending sectors in this round were retailers, hospitality businesses and hairdressers.
It comes ahead of the next rate rise on 1 April, when the National Living Wage will go up from £7.50 to £7.83 per hour. Apprentices under the age of 19 and those in the first year of their apprenticeship will benefit from a record 5.7% rise.
Later this month the Department for Business, Energy and Industrial Strategy (BEIS) will launch a campaign to raise awareness of the new rates and encourage workers to speak to their employer if they think they are being underpaid.
This 14th naming round comes after the government published its Good Work plan last month, which announced the right to a payslip for all workers. The new law is likely to benefit around 300,000 UK workers who do not currently get a payslip.
For those paid by the hour, payslips will also have to include how many hours the worker is paid for, making pay easier to understand and challenge if it is wrong. The move is part of the government’s Industrial Strategy, the long-term plan to build a Britain fit for the future by helping businesses create better, higher-paying jobs in every part of the UK.
Since 2013 the scheme has identified more than £9 million in back pay for around 67,000 workers, with more than 1,700 employers fined a total of £6.3 million. The government has also committed £25.3 million for minimum wage enforcement in 2017 to 2018.
There are still places available at the London half-day briefing on minimum wages on 28 March (9:30-13:00) where you can join the CIPP, IES and Eversheds-Sutherland. Areas covered include the consequences of a trebling in minimum wage jobs, increasing enforcement, current issues and reviewing your employment and reward models. To book your place, go to Eversheds-Sutherland.