Naming and shaming of employers failing to pay the minimum wage
Employers who fail to pay the national minimum wage (NMW) will be publicly named and shamed, Employment Relations Minister Jo
Swinson has announced. The revised NMW naming scheme comes into effect in October 2013 and will strip back restrictions, making it simpler for governmentto name more employers who break the law.
The new rules are part of government efforts to toughen up enforcement of the NMW and increase compliance. By naming employers
it is hoped that bad publicity will be an additional deterrent to employers who would otherwise be tempted not to pay the NMW, the Department for Business, Innovation and Skills has said. The measure is on top of financial penalties which employers already face if they fail to pay NMW.
Under the original scheme, employers had to meet to workers had to be at least £2,000 and the average per worker at least
£500 before an employer could be referred to the Department for Business, Innovation & Skills from HM Revenue & Customs for naming. The revised scheme will remove these restrictions so that any employer who breaks minimum wage law can be named.
In 2012 to 2013 HMRC identified 736 employers who had failed to pay the national minimum wage leading to the recovery of £3.9 million in unpaid wages for over 26,500 workers.
For more information, please see the Department for Business, Innovation and Skills website.
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