In 2013 the Government introduced a “naming and shaming” scheme that gave the Department for Business, Innovation and Skills the power to name companies that owe more than £100 to staff that have been paid less than the minimum wage.
You may have seen some big brand names in the news recently that have had exactly that happen to them as a percentage of their staff were not being paid in line with the minimum wage due to one reason or another, but they are not alone!
The list currently has 115 companies named on it, although undoubtedly there are many many more, owing a total of £389,000. What is even more shocking is that 4 of the top 5 companies alone owe a staggering £84,000 to just 38 employees, now that is one big oversight!
We don’t want your company to be put on the list, so here is a recap of what you should be paying:
By law ALL workers must be paid the National Minimum Wage which is currently:
£6.70 per hour for adults, £5.30 per hour for 18-20 year olds and £3.87 per hour for 16-17 year olds.
Something worth noting is that the company that hit the headlines claimed the problem was caused by the firm ‘unintentionally’ failing to take into account clothing which its minimum-wage staff were made to buy to wear at work. As staff must wear outfits by the brands, which they can buy at a 25 per cent discount, those on the minimum wage had their total earnings pushed under the legal threshold. They now receive a clothing allowance!
If you have any doubts whether your staff are being paid correctly or if there are any circumstances that may change their earnings, get in touch now for advice.
Or check out the national minimum wage calculator on the Government website