Paying below minimum wage, more employers exposed!

More than 200 organisations have been exposed by the Government for failing to pay employees the minimum wage, including retailers Matalan and House of Fraser. In its latest round of “naming and shaming” employers that have breached national minimum wage regulations, the Department for Business, Energy and Industrial Strategy highlighted 208 organisations that owed about 12,000 workers a total of £1.2m in wage arrears.

The most common error identified involved deductions that took employees’ pay below the legal minimum, including staff being left out of pocket because they had to comply with a dress code. More than a third of employers who were named, breached the regulations in this way.

Meanwhile, over 25% did not pay staff for some of their working time, such as mandatory training, trial shifts or for travel time; 16% did not pay the correct rate to apprentices; and 11% failed to increase wages in line with annual increases to the national minimum wage or national living wage rates, or paid employees the incorrect rate for their age group.

Organisations that breach minimum wage rules must pay staff what they are owed at current national minimum wage and national living wage rates, and also face financial penalties of up to 200% of arrears, which are paid to the government.

In April 2022, the national living wage will increase by 6.6% from £8.91 to £9.50. New national minimum wage and apprentice rates will also take effect.

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