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Pod 6, The Engine Rooms, Station Road
Chepstow
Monmouthshire

01633 730907

For more than 10 years we have provided companies of all sizes and in a variety of sectors with uncomplicated, innovative and affordable human resources advice and on-site support ensuring that your people are an asset to your company and not a liability.

News

With the National Minimum Wage (NMW) now almost fifteen years old, and with another increase pending on 1st April 2017 HMRC have issued a list of the most elaborate excuses they've been given by employers for not paying the appropriate rates:

HMRC Names and Shames 'Rogue Employers'

Alan Kitto

HMRC has formally named and shamed 139 companies that it has investigated for failing to pay the National Minimum Wage or National Living Wage to its employees, between 2016 and 2018.

The list rages from large organisations, involving multiple employees such as …

  • Tesco stores Limited, Welwyn Hatfield AL7, failed to pay £5,096,946.13 to 78,199 workers

  • Pizza Hut (U.K.) Limited, City of Edinburgh WD6, failed to pay £845,936.41 to 10,980 workers

  • The Lowry Hotel Limited, trading as The Lowry Hotel, Salford EC4A, failed to pay £63,431.51 to 99 workers

… to much smaller employers involving only one employee:

  • Molescroft Nursing Home (Holdings) Limited, trading as Beverley Grange Nursing Home, East Riding of Yorkshire HU13, failed to pay £510.24 to 1 worker

A full list of the companies can be found here.

One of the main causes of minimum wage breaches was low-paid employees being made to cover work costs, which would eat into their pay packet, such as paying for uniform, training or parking fees.

Also, some employers failed to raise employees’ pay after they had a birthday which should have moved them into a different National Minimum Wage bracket.

Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates. They also face hefty financial penalties of up to 200% of arrears - capped at £10,000 per worker - which are paid to the government. Each of the companies named today have paid back their workers, and were forced to pay financial penalties.

While not all breaches of minimum wage rules are intentional, it is the responsibility of all employers to ensure they are following the law. With this round, we are also publishing a short educational bulletin that summarises public guidance on paying workers and common reasons for underpayment – helping to ensure that workers are not short-changed in future.

For more information on the National Minimum Wage or National Living Wage and how to stay complaint with the rules, give us a call.