The Biggest & Best Portal to the Professional Property, Workplace and Built Environment Community

Sunday, 24 June

Minimum Wage Cheats Named & Shamed Again

Minimum Wage Cheats Named & Shamed

March 9 saw 179 employers named and shamed for underpaying thousands of minimum wage workers. 9,200 minimum wage workers were cheated out of £1.1 million.

As well as recovering backpay for the workers, the government also fined the employers a total of £1.3 million in penalties for breaking national minimum wage laws. The most prolific offending sectors in this round were retailers, hospitality businesses and hairdressers.

It comes ahead of the next rate rise on 1 April, when the National Living Wage will go up from £7.50 to £7.83 per hour. Apprentices under the age of 19 and those in the first year of their apprenticeship will benefit from a record 5.7% rise.

Later this month the Department for Business, Energy and Industrial Strategy will launch 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.

Bryan Sanderson, Chairman of the Low Pay Commission, said: "As the National Living Wage and National Minimum Wage rates rise on 1 April, it is vital that workers understand their rights, and employers their obligations. The Low Pay Commission is pleased to see the government maintaining the momentum of its minimum wage enforcement.

"The recent announcement that all workers will have a right to payslips stating the hours they have worked – an idea originally proposed by the LPC – is a positive step."

 

Pay slips

This 14th naming round comes after the government published its Good Work plan last month, which announced the right to a payslip for all workers. The new law is likely to benefit around 300,000 UK workers who do not currently get a payslip.

For those paid by the hour, payslips will also have to include how many hours the worker is paid for, making pay easier to understand and challenge if it is wrong.

 

£9 million back pay

Since 2013 the scheme has identified more than £9 million in back pay for around 67,000 workers, with more than 1,700 employers fined a total of £6.3 million. The government has also committed £25.3 million for minimum wage enforcement in 2017 to 2018.

Employers who pay workers less than the minimum wage not only have to pay back arrears of wages to the worker at current minimum wage rates but also face financial penalties of up to 200% of arrears, capped at £20,000 per worker.

 

Top five from Round 14

Wagamama Limited, Westminster W1F, failed to pay £133,212.42 to 2,630 workers.

Marriott Hotels Limited, Luton LU1, failed to pay £71,722.93 to 279 workers.

Thursday (UK) Limited, trading as TGI Friday’s, Luton LU1, failed to pay £59,347.64 to 2,302 workers.

National Society For Epilepsy (THE), Chiltern SL9, failed to pay £55,251.37 to 26 workers.

Wright Leisure Limited, trading as Xercise4less, Leeds LS4, failed to pay £54,290.37 to 240 workers.

Picture: The Taxman calls - to collect underpayment minimum wage back pay, income tax, national insurance and up to double that amount in fines

 

Article written by Brian Shillibeer

Share



Related Articles

Real Living Wage Champion

Enhance Office Cleaning has won the Living Wage Champion Award for recognised service providers. The 2018 Living Wage Champion Awards give recognition to individuals...

 Read Full Article
It's A Hard Day's Night

The number of night time workers in London has increased with 109,140 new night-time jobs created between 2004 and 2016, according to the latest London Assembly Economy...

 Read Full Article
Round 12 - Name & Shame Minimum Wage Cheats Exposed

On Wednesday 16, 233 employers were named and shamed by The Department for Business, Energy and Industrial Strategy for underpaying their workers the National Minimum or...

 Read Full Article
Aussie Rules Stump ISS - International Firm's Reputation Caught & Bowled

ISS Facility Services Australia was snared in a surprise night-time visit to the Melbourne Cricket Ground by Fair Work Ombudsman inspectors to investigate exploitation of...

 Read Full Article
Better Than Min On Road To Real

Working in partnership with the GMB, Securitas UK has introduced a minimum wage of £8.03 for security officers, twenty pence higher than the National Minimum Wage...

 Read Full Article
Modern Slavery Week Of Action In The City

A Modern Slavery week of activity took place from 19 February to 25 February in the City of London as a  number of construction sites were visited and officers held...

 Read Full Article
Cambridge Dons Living Wage Pledge

The University of Cambridge has signed up to the Living Wage - and we have a blog from Cambridge City Council - Championing the real Living Wage since...

 Read Full Article
A Bit of Good Work - Government And TUC Respond To Taylor Review

Millions of FM and agency workers and those in the 'gig' economy are to benefit from enhanced rights says the  government as it responds to The Taylor review...

 Read Full Article
On Target Another Minimum Wage Name & Shame Due

On the same day that the government heralded its response to the Taylor review of modern working practices, plans were also revealed for another round of minimum wage...

 Read Full Article
Destination Insecurity - Pension Age Hits Lowest Paid

Responding to the announcement this week (ending July 21) of a speeded-up timetable for raising the state pension age to 68, TUC General Secretary Frances O’Grady...

 Read Full Article