Crackdown on employers not paying National Minimum Wage

Published on August 27, 2014 by Fiona Sanderson

Tough new measures on Employers who fail to pay the National Minimum Wage

There have been a number of new measures brought in by the Government in an attempt to discourage employers who disregard the National Minimum Wage.

The first is a tougher naming and shaming scheme that was brought into force on 1 October 2013. Under this scheme, employers are publicly named and shamed.

The most recent “naming and shaming” was on 28 February 2014. On this date, 5 employers were named who owed workers a total of £6,800.00. These employers were charged financial penalties totalling £3,381.40.

In addition to the above and following a change on 7 March 2014, the financial penalties for failing to pay National Minimum Wage was increased from £5,000.00 to £20,000.00. This could be a big hit for an SME, so it's important for employers to keep track of the National Minimum Wage rules.

National Minimum Wage rates

All employers have a duty to be aware of the current National Minimum Wage rates. On 1 October 2013 the rates were increased as follows:

  • The adult rate increased by 12p to £6.31 an hour;
  • The rate for 18 – 20 year olds increased by 5p to £5.03 per hour;
  • The rate for 16 – 17 year olds increased by 4p to £3.72 an hour;
  • The apprentice rate increased by 3p to £2.68 an hour.

All cases referred are thoroughly investigated by HM Revenue and Customs after workers make their initial complaint to the free and confidential Pay and Work Rights helpline at www.gov.uk/pay-and-work-rights-helpline.

Find out more about National Minimum Wage rules

Also, employers who have queries about the National Minimum Wage rules can get free advice and help from the Pay and Work Rights helpline on 0800 917 2368.

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Written by Fiona Sanderson

Fiona is Marketing Manager at myhrtoolkit. Her areas of expertise include HR systems, productivity, employment law updates, and creating HR infographics.

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