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 totaling £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.
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 www.gov.uk/pay-and-work-rights-helpline . 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