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Companies named and shamed over National Minimum Wage

Seventy-five employers have been ‘named and shamed’ for failing to pay workers the correct National Minimum Wage. The discovery was made after investigations were carried out by Revenues and Customs (HMRC) and found that scores of employers owed over £153,000 in arrears to workers.

Business Minister Nick Boles said: "As a one nation government on the side of working people we are determined that everyone who is entitled to the National Minimum Wage receives it. When the new national living wage is introduced next April we will enforce robustly.”

Employers in sectors including: hairdressing, fashion, publishing, hospitality, health and fitness, automotive, social care and retail are in the spotlight. Naming offenders is believed to be a step in the right direction by the government in the first list published since the general election in May.

Is your business accidentally paying below minimum wage?

The employment status of staff such as apprentices and interns can be uncertain. Employers must be careful not to underpay employees, as they will be liable to receive a Notice of Underpayment and will also be ‘named and shamed.’

Since October 2013, 285 employers with total penalties of over £325,000 have now fallen under this scheme. From October 2015, the National Minimum Wage will increase to £6.70. Therefore, employers must ensure they are aware of these changes.

If you would like to discuss any of the issues raised in this article, please do not hesitate to get in touch.