News

It’s been announced that over 200 employers have been identified by the government for failing to pay their lowest paid employees the national minimum wage.

In total, 202 employers were found to have failed to sufficiently pay their workers. This totalled almost £5 million, a clear breach of the National Minimum Wage (NMW) law. As a result of this breach, it’s estimated that around 63,000 UK employees have been left out of pocket.

The breadth of companies found guilty of this breach is broad, ranging from major high street brands to small businesses and sole traders. All businesses have since paid back what they owe to their employees, in additional to financial penalties.

An investigation into the breach identified the employers underpaying their staff in the following ways:

• 39% of employers deducted pay from workers’ wages
• 39% of employers failed to pay workers correctly for the time they had worked
• 21% of employers paid the incorrect apprenticeship rate.

Minister for Enterprise, Markets and Small Business, Kevin Hollinrake, said:

“Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff. Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”

HTB Client Account Manager, Samantha Bennett, commented on this case: “We understand that running a business involves spinning a lot of plates, but keeping on top of costs – especially those associated with paying your workforce – is crucial. At HTB we can support business owners with a range of services, including payroll, which not only removes this burden from them, but also protects them from any potential breaches.”

For more information on this news, visit the Gov.uk website. Looking for support for your own business? Take a look at our accountancy services for businesses.