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Posted by on in Minimum Wage
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Government gets tough on minimum wage failures

Employers who owe their workers thousands of pounds for failing to pay them the correct National Minimum Wage have been named and shamed by Business Secretary Vince Cable.

The Government is introducing a series of tougher measures to crack down on employers who flout National Minimum Wage law. The first of these, a tougher naming and shaming scheme, came into effect on 1 October 2013.

Five employers are the first to be named under the stricter rules, who between them owe workers a total of over £6,800 in arrears and have been charged financial penalties totalling £3,381.40.

As well as being publicly named and shamed, employers who fail to pay their workers the National Minimum Wage will face higher financial penalties of up to £20,000 as of 7th March 2014.

The Government also plans to legislate at the earliest opportunity so that employers will also be given penalties of up to £20,000 for each individual worker they have underpaid, rather than the maximum fine applying to each employer. In the most serious cases, employers can also face criminal prosecution.

 

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