Government to reinstate the National Minimum Wage naming and shaming list
12 February 2020
Organisation failing to pay their workers the NMW or National Living Wage (NLW) will be publicly named and shamed on a list created by the government, following a review of the original scheme.
- Changes will now see that naming rounds occur more frequently than the previous scheme.
- They have also increased the threshold for naming employers, meaning that firms which owe arrears of more than £500 in NNW payments to their workforces will now be named. The threshold was previously £100.
- Government aim for businesses who marginally breach NMW will not be named, provided they correct any errors.
- Businesses underpaying less than £100 will have the chance to rectify their errors without being named but will still have to pay back workers and can face fines of up to 200% of the arrears.
See the full update here.
Aspire Comment
It is imperative that all workers receive a minimum of their age-appropriate minimum wage.
Government have stated that in 2018 to 2019, over 1,000 penalties were issued for NMW/NLW breaches, totalling over £17 million. Penalties for non-compliance still stand at up to £20,000 per worker.
If you are concerned about your compliance with the NLW/NMW, please contact Aspire on 0121 445 6178 or email enquire@aspirepartnership.co.uk to discuss how we can identify any risk areas within your company.