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Government names & shames largest group of Minimum Wage offenders

A further 70 employers who failed to pay their workers the National Minimum Wage have been named.

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A further 70 employers who failed to pay their workers the National Minimum Wage (NMW) have been named today by Business Minister Jo Swinson, bringing the overall total named and shamed to 162.

Between them, these 70 employers owed workers a total of over £157,000 in arrears and have been charged financial penalties totalling over £70,000.

The government has already named 92 employers since the new naming regime came into force in October 2013. They had total arrears of over £316,000 and total penalties of over £111,000.

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To support the minimum wage crackdown, the government will also be increasing HMRC’s £9.2 million enforcement budget by a further £3 million, helping to fund more than 70 extra compliance officers.

Business Minister Jo Swinson said: “Paying less than the minimum wage is illegal, immoral and completely unacceptable. Naming and shaming gives a clear warning to employers who ignore the rules, that they will face reputational consequences as well as financial penalties of up to £20,000 if they don’t pay the minimum wage.”

“We’re working hard in areas where we know there are particular problems, like the care sector, to make sure staff are paid fairly for the hard work they do.”

“We are legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.”

“We are helping workers recover the hundreds of thousands of pounds in pay owed to them as well as raising awareness to make sure workers are paid fairly in the first place.”

The government examines non-compliance in a number of ways and takes action where it identifies particular problems or challenges. Around 100 care sector cases are currently being investigated and 3 employers have been publically named, for failing to pay the minimum wage. HM Revenue and Customs (HMRC) has also launched proactive investigation into 6 of the largest employers in the care sector.

Care and Support Minister Norman Lamb said: “We want a fairer society where everyone gets the care they deserve – to do this we need a skilled, valued and fairly paid workforce. There is absolutely no excuse for employers that fail to pay the minimum wage.”

“We know the 100 care companies being investigated are just the tip of the iceberg in the care sector and are absolutely committed to getting back the wages people have worked so hard for. We will continue to name, shame and fine these employers until every care provider gets the message.”

HMRC is working with the Department of Health, Department for Business, Innovation and Skills (BIS), the Association of Directors of Adult Social Services and the care sector to understand more about the causes of non-compliance with the national minimum wage in the care sector and to raise awareness of the minimum wage with employers and care workers. This includes making sure that employees know how to complain if they believe they are not being paid the national minimum wage.

The 70 employers named today are:

The 70 cases named today were thoroughly investigated by HM Revenue and Customs.

The scheme was revised in October 2013 to make it simpler to name and shame employers that do not comply with minimum wage rules.

Commenting on the naming and shaming, TUC General Secretary Frances O’Grady said: “We welcome today’s list and encourage the government to make public the hundreds of other minimum wage cheats they know about as soon as possible. If we want to stamp out this criminal behaviour then all employers who under-pay their staff must be publicly named and shamed.

“We need more prosecutions and higher fines. Cheating bosses who fleece their workers out of their hard earned pay must end up in court.

“And there are still lots of under-paying employers who are getting away with it. More inspectors are needed so we can make sure that every single minimum wage cheat is caught.”

Image: Money via Shutterstock

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