The government has named and shamed 25 more employers who have failed to pay the National Minimum Wage (NMW).
Business Minister Jo Swinson revealed their names on 27 November, under a scheme introduced in October 2013. Between them, the employers owe workers more than £89,000 in arrears and have been received financial penalties totalling over £36,000.
Ms Swinson said: “Paying less than the minimum wage is wrong and illegal. Employers need to know that they will face tough consequences if they break the law.
“All workers are entitled to the minimum wage. This isn’t a generous gesture, this is the law. Government takes the enforcement of workers’ rights seriously and those who don’t pay will be named, shamed and fined.”
The largest sum owed was by the Barber Institute of Fine Arts, an art gallery and concert venue in Birmingham, which owed £25,553.40 to 16 workers. A spokesman said: “”This particular case relates to a historic programme of internships at the Barber Institute of Fine Arts which dates back to 2008.
“Rather than being unpaid, as was normal practice for museum internships at the time, a small amount of money was found to provide the interns with a bursary as a thank you gesture. It is as a result of providing this payment that the Barber inadvertently broke the rules.”
The government has introduced a series of tougher measures to crack down on employers that break National Minimum Wage law. As well as being publicly named and shamed, employers that fail to pay their workers the National Minimum Wage also face penalties of up to £20,000.
The government is also legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.
It also announced in the Autumn Statement on 3 December that it would provide an extra £3 million in 2015-16 to improve NMW enforcement.
At Palmers, we can advise on all aspects of employment law, including those relating to the national minimum wage and other statutory payments. Our HR package also offers regularly updated sample policies for these issues.
For more information and guidance, please visit our website or contact Lara Murray.