Latest Public Sector News

23.08.13

Minimum wage charges strengthened

Employers who fail to pay the minimum wage will be ‘named and shamed’, the Government has announced. 

The new proposals, which will come into effect from October alongside the updated minimum wage at £6.31, will remove restrictions on companies being named for their action. 

Currently companies must meet seven criteria to be named publically, and the minimum amount owed to employees has to be at least £2,000. Those failing to pay the minimum wage face fines of up to £5,000 as well as being required to pay back what they owe. 

The HMRC found that 736 employers failed to pay the national minimum wage last year, and trade union TUC warned it could well be more than that. 

Jo Swinson, employment minister, 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.” 

TUC general secretary Frances O'Grady said: “Employers need to know that there will be no hiding place if they break the law. The Government must put more money into enforcement so that there are fewer places for even the most determined minimum wage cheats to hide.”

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