- 24th February 2020
- Posted by: Suzy Hill
- Category: Personal Tax, Business News
Government to name and shame minimum wage offenders
The UK government has reintroduced the naming and shaming of employers who fail to pay their employees the National Minimum Wage (NMW) or the National Living Wage (NLW).
The government has also increased the threshold for naming employers so that firms owing arrears over £500 in NMW payments to their workforces will now be named. The threshold was previously £100, and the government says this approach means that businesses falling foul of the rules by minimal sums will not be named, provided they correct any errors.
However, the government has warned that offenders must still pay back workers and can face fines of up to 200% of the arrears.
The government said it is also increasing support for employers to comply with NMW legislation. It said changes will provide more flexibility in how salaried workers are paid, without reducing protections for employees.
Commenting on the changes, Business Minister Kelly Tolhurst said: ‘Anyone who is entitled to the minimum wage should receive it – no ifs, no buts – and we’re cracking down on companies that underpay their workers.
‘We also want to make it as easy as possible for employers, especially small businesses and those trying to do right by their staff, to comply with the NMW rules, which is why we’re reforming regulations.’