Government cracks down on non-payment of minimum wage

Five UK employers have been the first to be named and shamed for failing to pay their employees the correct National Minimum Wage.

The tougher naming and shaming scheme came into force in October last year, as part of a series of measures to crack down on employers who flout National Minimum Wage law.

Business Secretary Vince Cable said:

“Paying less than the minimum wage is illegal. If employers break the law they need to know that they will face tough consequences.

“We know that people are put off using a business’ service if it is found guilty of not paying its workers the minimum wage. This is a clear warning to employers: you will damage your reputation and face a stiff penalty, if you don’t pay the minimum wage.

“Any worker who is entitled to the minimum wage should receive it. It’s not only fair, it’s the law. If anyone suspects they are not being paid the wage they are legally entitled to they should call the Pay and Work Rights helpline.”

New higher penalties for employers will come into force on 7th March 2014 and will increase the National Minimum Wage financial penalty percentage from 50% to 100% of total underpayments and the maximum penalty applied from £5,000 to £20,000.

Employers have a duty to be aware of the different legal rates for the National Minimum Wage, which were increased on 1st October 2013, and may vary depending on the circumstances of their workers.

Employers are also encouraged to make sure they take into account all details that can affect how much workers are entitled to be paid - including such things as age, accommodation, travel time and deductions for uniform hire.

Contact our Employment Solicitors in Aberdeen

If you need help with an employment law matter, including advice on the minimum wage, contact our specialist solicitors on 01224 370 208 or fill in our enquiry form today.

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