Minimum wage: Are you paying what you should?
More than 200 employers have been publically named and shamed by the government for failing to pay their lowest paid staff the minimum wage.
They were found to have failed to pay their workers almost £5million in a clear breach of National Minimum Wage law, leaving around 63,000 workers out of pocket.
The companies range from major high street brands to small businesses and sole traders.
The list is a timely reminder for all employers, whatever their size, to ensure that they are not in breach of the law.
Publishing the list of the 202 companies, the government said that it was giving a “clear message” that no employer is exempt from paying their workers the statutory minimum wage.
Kevin Hollinrake, government minister for enterprise, markets and small business, said: “Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.
“Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”
The businesses named in the list have since paid back what they owe to their staff and have also faced financial penalties, reported to be around £7m in total.
They underpaid workers in the following ways:
• 39 per cent of employers deducted pay from workers’ wages
• 39 per cent of employers failed to pay workers correctly for their working time
• 21 per cent of employers paid the incorrect apprenticeship rate
The government says that while not all minimum wage underpayments are intentional, there is no excuse for underpaying workers.
Bryan Sanderson who chairs the Low Pay Commission, said: “The minimum wage acts as a guarantee to ensure all workers without exception receive a decent minimum standard of pay.
“Where employers break the law, they not only do a disservice to their staff but also undermine fair competition between businesses.”
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