Naming and shaming when employers fail to meet National Minimum Wage obligations

The Government will resume ‘naming and shaming’ employers that fail to pay the national minimum wage (NMW), as part of an overhaul aimed at reducing the burden of the legislation on businesses.
The policy of naming and shaming employers in breach of NMW regulations was quietly suspended towards the end of 2018, following a number of high-profile complaints from businesses that inadvertently fell foul of the complex rules.
As part of this latest overhaul, employers offering salary sacrifice and deduction schemes will no longer face financial penalties if payments fall below NMW. This will be subject to ‘strict criteria’ such as if the worker has opted into the scheme. Uniform payments or deductions for other items connected with employment will continue to be penalised, however.
Businesses that underpay by less than £100 will have the chance to correct their mistakes without being named, but will still have to reimburse workers and could face fines of up to 200% of arrears
The changes are expected to come into force on 6 April 2020, subject to normal parliamentary approval.

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