£1.7m owed in back pay by employers who have breached NMW/NLW

The Department for Business, Energy and Industrial Strategy has published the latest list “naming and shaming” 260 employers that failed to pay the National Minimum Wage (“NMW”) or the National Living Wage (“NLW”).

In accordance with the Government’s scheme to name and shame employers who breach NMW or NLW, more than 16,000 of the UK’s lowest paid workers who did not receive the age-related minimum wage rate will receive approximately £1.7m in back pay. The Government has also issued fines of £1.3m for the underpayments.

The reasons for the breaches are very similar to those reasons which were cited by employers on previous naming and shaming lists. Common errors include failing to pay workers for travelling between jobs, deducting money from pay for uniforms and not paying for overtime.

Since 2013, the scheme has identified £8m in back pay for 58,000 workers and issued fines totalling £5m. This year the Government has announce that it will spend a record £25.3m on minimum wage enforcement.

To view the full list, click here.

Aspire Comment

With more money being spent on minimum wage enforcement and the NMW/NLW Compliance team being the only team in HMRC which has had its staffing levels increased, it is vital that you take action to ensure that you are correctly paying the NMW or NLW that is due.

If you are concerned about whether you are meeting your NMW/NLW obligations as an employer, avoiding the financial and reputational risk of being on the next name and shame list or receiving a visit from HMRC, give Aspire a call on 0121 445 6178.