Employers who fail to pay the National Minimum Wage (NMW) will be publicly named and shamed under revamped plans to make it easier to clamp down on rogue businesses.
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 (on top of financial penalties already faced) to employers who would otherwise be tempted not to pay the NMW.
The revised NMW naming scheme, which will come into effect in October 2013, will strip away restrictions, making it simpler for the government to name more employers who break the law.
Under the original scheme, employers had to meet one of seven criteria before they could be named. The minimum amount of NMW owed to workers had to be at least £2000 and the average per worker at least £500 before an employer could be referred to the Department for Business, Innovation & Skills (BIS) for naming. So far, only one employer, a hairdresser from Leicester, has been named for failing to pay NMW. The revised scheme will remove these restrictions so that any employer who breaks the law on NMW can be named.
In 2012-2013, HMRC identified 736 employers who had failed to pay the NMW leading to the recovery of £3.9 million in unpaid wages for over 26,500 workers.
Please visit our Employment Buddy facts and figures helpsheet here for confirmation of current NMW rates.