Employers named and shamed for paying under minimum wage

Nearly 180 employers have been named and shamed for paying more than 9,000 workers less than the National Minimum Wage.

The underpayments totalled £1.1m. Those workers underpaid have now received back payments of the wages owed.

The worst offending sectors were retailers, hospitality and hairdressers.

The offending firms were fined a total of £1.3m, and their names were published online.

The minimum rates increased on 1 April. The National Living Wage applies to most workers over 25; the National Minimum Wage applies to most workers under the age of 25.

 25 and over21 to 2418 to 20Under 18Apprentice
April 2018£7.83£7.38£5.90£4.20£3.70
April 2017 (previous)£7.50£7.05£5.60£4.05£3.50

The Department for Business, Energy and Industrial Strategy (BEIS) has launched a campaign to raise awareness of the new rates and encourage workers to speak to their employer if they think they are being underpaid.

Business Minister Andrew Griffiths said: “The world of work is changing, and we have set out our plans to give millions of workers enhanced rights to ensure everyone is paid and treated fairly in the workplace.

“There are no excuses for short-changing workers. This is an absolute red line for this government and employers who cross it will get caught - not only are they forced to pay back every penny, but they are also fined up to 200% of wages owed.”

These latest changes come after the government published its Good Work Plan in February.

Other new rules include the right for every worker to receive a pay slip detailing how many hours they have been paid for, making it easier to identify and challenge if there is an error.

The new system is expected to benefit around 300,000 UK workers who do not currently get a payslip.

Please contact us if you would like more information about the issues raised in this article, or any aspect of employment law.

to chat