Employers who fail to pay the national minimum wage will be named and shamed under plans announced by the Government.
It hopes the new rules, which come into effect in October, will embarrass firms into paying up. To be named under the current rules, an employer has to owe workers at least £2,000, and the average owed per worker has to be at least £500. But these restrictions will now be removed, allowing employers to be named much more easily.
Employment Relations Minister, Jo Swinson MP, said, “Paying less than the minimum wage is illegal. This gives a clear warning to rogue employers who ignore the rules, that they will face reputational consequences as well as a fine if they don’t pay the minimum wage.”
At the moment employers found to be breaking the law have to pay back the amount they owe, and in addition face financial penalties of up to £5,000.
In June this year, Arcadia, the owner of Top Shop, was among nine firms that had to pay out nearly £200,000 for failing to pay interns the minimum wage. In total last year HM Revenue and Customs (HMRC) identified 736 employers who failed to pay the national minimum wage.
The current minimum wage for adults is £6.19, rising to £6.31 in October and anyone who is not receiving it can phone the National Minimum Wage helpline on 0845 6000 678.