Government tells over 200 employers to pay back £2 million to underpaid workers

The government has named and shamed 233 employers for underpaying more than 13,000 workers in its latest round of National Minimum and Living Wage enforcement.

The employers on this round’s list have been fined a record £1.9 million by the government.

On top of these fines, they will also have to pay back 13,000 workers the money they’re owned.

The most common errors employers made in this round included deducting money from pay packets to pay for uniforms, failure to account for overtime hours, and wrongly paying apprentice rates to workers.

Business Minister Margot James said:

“It is against the law to pay workers less than legal minimum wage rates, short-changing ordinary working people and undercutting honest employers.

“Today’s (16th August) naming round identifies a record £2 million of back pay for workers and sends the clear message to employers that the government will come down hard on those who break the law.”

Melissa Tatton, Director at HM Revenue and Customs, said:

“HMRC is committed to getting money back into the pockets of underpaid workers, and continues to crack down on employers who ignore the law.

“Those not paying workers the National Minimum or Living Wage can expect to face the consequences.”

Since launching in 2013, the government scheme has discovered £6 million back pay for 40,000 workers, and fined 1,200 employers £4 million.

From 1st April 2017, the National Minimum Wage rates per hour is:

  • 21-24 year olds  = £7.05 per hour
  • 18-20 year olds = £5.60 per hour
  • 16-17 year olds = £4.05 per hour
  • Apprentices = £3.50

The National Living Wage rate for those aged 25 years and over increased to £7.50 per hour from 1st April 2017.

If you’re an employee and you think you may have been underpaid, go to gov.uk/checkyourpay and Acas for free advice.

If you’re an employer and need advice on the National Minimum Wage or National Living Wage, get in touch with us today for a no-obligation chat.

Source: gov.uk

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Please call Nathalie Stewart on 01482 324252.

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