Record number of employers shamed over minimum wage

The government has published its longest ever list naming and shaming employers who have failed to pay the National Minimum Wage (NMW).

The list names 197 companies across a range of sectors including football clubs, hotels, care homes and hairdressers. Between them they owed their employees £465,291 in arrears because of longstanding underpayment of wages.

All of the money owed to their employees has been paid back to them.

Since the scheme was introduced in October 2013, 687 employers have been named and shamed, with total arrears of more than £3.5m.

Business Minister Margot James said: “The government is making sure everyone gets paid the wages they are owed – including our new, higher, National Living Wage. It is not acceptable that some employers fail to pay at least the minimum wage their workers are entitled to.

“We’ll continue to crack down on those who ignore the law, including by naming and shaming them.”

The National Living Wage of £7.20 per hour for workers aged 25 and over was introduced in April this year. It has meant a pay rise of more than £900-a-year for someone previously working full time on the National Minimum Wage.

For workers under the age of 25, the National Minimum Wage still applies.

The current rates are:

• £6.70 for workers 21 and over
• £5.30 18-20 years
• £3.87 for 16-17 years, who are above school leaving age but under 18
• £3.30 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

These rates are due to increase in October.

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